How Private Label Manufacturers Can Increase Sales

With an increase of opportunities for private label manufacturers, we’ve been covering topics like challenges in the industry and popular website designs to help business owners and marketers grow their business. Recently, private label manufacturing sourcing activity has seen steady growth — up 45% year over year.

Private label food retail manufacturerHere are some other quick stats:

  • According to eMarketer, “private labels are the reason many shoppers choose particular retailers; 66% said that if they like a retailer, they generally assume they will also have good store brand products.” 
  • In 2019, Nielsen reported, private label sales for mass retailers soared 41% to $60.8 billion, from $43.1 billion in 2013. And unit sales for private brands climbed 33.2% to 19.9 billion last year from 15 billion in 2013.
  • According to Nielsen data cited by the Private Label Manufacturers Association (PLMA), Q1 2020 store brand sales increased 15%, or about $4.9 billion, over the year-ago period.

How can private label manufacturers take advantage of today’s opportunities and increase their sales?

Work With Retailers To Build An Experience For Customers 

According to data last year from the Private Label Manufacturers Association and Nielson, the mass retail channel topped supermarkets for the first time in annual private label dollar sales volume in food and nonfood consumables, as well as in dollar and unit market share. More consumers are becoming obsessed with health, the origin of what they buy, and “green” packaging. In response, more groceries and retailers are working with private label manufacturers to set industry trends and put more sustainable packaging and products on the shelves and available online.

As we continue to see a contraction of online stores and a rise in e-commerce, Nielsen suggests it is pivotal to efficiently manage distribution between online and offline platforms for optimal gain. Providing a strong digital presence is no longer an option today for businesses — it is crucial for survival. Both consumers and companies expect to do business with brands that provide a seamless digital experience. 

Consulting group, BCG stresses that to succeed, retailers need strategic partnerships, not just transactions. To meet consumer and price products' demands competitively, retailers need to review a supplier's capabilities holistically and evaluate how they can boost customer loyalty — bids should no longer be solely based on low cost. Delivering value beyond price keeps customers from going to competitors because true differentiation lies in selling private label products you can’t purchase anywhere else, not just cheaper alternatives as what private labeling has been traditionally used for. 

Especially now that in-store traffic level is down, the store footprint should be reimagined. However, a struggling SKU does not specifically mean a loss of opportunity. Nielson suggests that it can still drive incrementality and retailers and manufacturers should collaborate to deliver the optimal assortment of products for consumer demand. 

For manufacturers, this means showcasing how you can deliver value to the end consumer. What are your product development capabilities that are consistently ahead of the curve?

In our May/June Thomas Industrial Survey Report, manufacturers expressed concerns because trade shows were canceled for the year.  Thus, 84% of respondents said they were using their website as one of the most important avenues to reach customers — an increase from 72% before the COVID-19 outbreak. One respondent told Thomas their manufacturing company is pivoting from B2B to consumer markets.

It’s no surprise that companies are shifting to direct-to-consumer selling. For many manufacturers, leveraging a network of distributors and resellers has been the simplest and traditional way to get their products to the end-users. However, thanks to COVID-19, buying habits have shifted and more manufacturers are prioritizing growing awareness of their brands through a smooth, efficient digital presence to compete with the experiences consumers are used to, like Amazon and other online retailers.

Gain New Customers In The Healthcare Industry

Recently, there has been an increase in unique searches from healthcare and medical providers for private label manufacturers. This also comes at no surprise as the COVID-19 pandemic has forcefully coerced businesses to re-strategize their supply chain. 

It is important for medical private label manufacturers to communicate how you can provide the name brand value and top quality at a valued price while maintaining the commitment to keeping healthcare, home, and workplace environments safe. Healthcare supply chains are highly complex and more regulated than others. Just as it is crucial for manufacturers to follow quality control procedures when developing and manufacturing all products, and comply strictly with standard FDA and EPA regulations, these efforts should be marketed clearly on their website. 

See if healthcare businesses are searching for your private label manufacturing services with a complimentary in-market buyer report.

Invest In New Avenues To Build A Strong Digital Presence

Most suppliers have needed longer lead times to ramp up and procure supplies. In addition to reshoring, more manufacturers have been turning their attention to automation and re-tooling their production processes to accommodate larger orders. And manufacturers can build a strong digital presence to attract new retail and healthcare partners or tap into other industries too.

Thomas has been connecting suppliers to buyers, engineers, and procurement managers for more than 120 years. Here are our must-have tips that have been proven to allow your industrial teams to generate new leads, sell new business, and bring on new customers:

  • Sign up for a free Thomas WebTrax account (more about it in the video above!) — it's a lead generation solution that enables you to track, identify, and engage buyers who have signaled an interest in buying your products and services.
  • Videos grow revenue 49% more than non-video users. And Company Profiles with product overview videos and factory tour videos have been proven to receive more RFQs than those that don’t. Sign up for Thomas to create a free video for your manufacturing business.
  • Our industrial marketing experts placed a Verified Supplier Badge on a customer's RFQ page and it created a 92% improvement in submissions. The Thomas Verified Badge indicates that in addition to the business information validation and RFQ activation for suppliers, these suppliers undergo a detailed product and service discovery and verification process with the Thomas Supplier Analyst team. 
  • Content marketing on your website helps potential customers (like retailers and healthcare) recognize your product/service value. Add high-quality images and videos of your final products to your website. Don't forget to list your certifications — it's one of the 26 components that can put you on the industrial buyer's shortlist.
  • Include customer testimonials on your website that convey your unique value proposition, innovation, and customer service capabilities. To increase your sales, you need your current happy customers to provide that social proof for you. Your buyers are vetting suppliers on their own time and if there’s content online that so many people are loving your private labeling products and services, they must be good enough to purchase.
  • 45% of manufacturers are investing in digital advertising to continue reaching new customers. Thomas Industry Update is industry’s daily email newsletter that delivers key updates and actionable insights on the industrial landscape. Manufacturers can take advantage of our subscriber audience and promote their business to decision-makers by job type and industry.
  • Sourcing activity continues to soar — is experiencing a 60+% increase in sourcing activity year over year (year to date 2020 vs 2019). Join other private label companies utilizing digital advertising to grow their business with a free company profile on to get seen by more buyers looking to source North American suppliers. 

Digital marketing will continue to be prevalent in today’s world. If you need more insight on how to transform your business and supplement your traditional growth efforts, send us a message. We offer a free digital health check that lets you know exactly how you can improve online and how you compare against competitors.

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