Private Labeling

How Private Labeling Can Help Expand Your Portfolio in the MENA

We will first try to understand what the word private labeling mean.  For example, you manufacture the product, but it is sold by your friend under his name. For outsiders, it will look like your friend is the owner of the product which is not true. There is another term also used for this type of business it’s called white labeling of Goods and services which is somewhat similar.

This concept has been existing since long time in the field of automobiles and technology sector, but this has been widely spreading across all the industries because of various benefits it offers to both manufacturers and popular retail brand companies. Private label Middle East has tremendously increased in recent years. This ample growth opportunity in private labeling has attracted many businesses in coming out with their own private brands in MENA markets.

Ways to Expand Your Business by Private Labeling

Expand your product portfolio

If you are a well-established brand with high brand recognition. Then now is the time to expand your products. Find a reliable manufacturer and set your own quality standards. You will have total control of how many units to be produced based on the demand of the customers. For instance, your product is the seasonal one you can decrease your product produced during the non-season time.

market share

Capture market share

Once your private label product is hit, it is very easy to expand your market both locally and internationally. As it requires you to find only local manufactures in that specified area who can manufacture your product at your desired quality, and you are ready to hit the market. It is also easy to localize your product as per the tastes and demands of local people.

Pricing and Higher Margins

Customer is becoming price-sensitive and at the same time are not willing to compromise on quality. This scenario perfectly suites private labeled products which are cheaper than national brands and also maintain high-quality standards which gives them hedge over local national products. Margins are also high as they make more selling directly than selling on wholesale. And also, you don’t have to deal with distributors who usually influence the pricing in case of national products.

Exclusivity

As you are the only one selling your branded product, then you don’t have to worry about other sellers undercutting your cost. If, any unauthorized seller tries to sell your product then you can easily have them removed from the market legally.

As the market for private brand labeling has been increasing it is a win-win situation for both established manufacturers and retail brand companies.

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