Popularity of private labels

The creation of private labels is the most logical development step for any multi-brand sales channel — both for a retailer and for a fashion marketplace. For example, in department stores, private labels can make up to a third of the assortment (for example, in the giant American Macy’s). And, for example, the Detsky Mir Group has about 90% private label in the clothing and footwear category.

Over the past 2 years, private labels have begun to appear and develop on large marketplaces, including Ozon, Yandex.Market, Megamarket. It is interesting that clothing private labels began to appear in companies that, in principle, had never dealt with clothing. For example, WOOSH (mobile transport) launched a line of merch under its own name, the express delivery service Samokat launched a line under the Arive brand.

Having extensive sales analytics from all suppliers, multi-brand private labels are lines based on proven bestsellers, which ensures high sales efficiency of competent private labels. And, by the way, private label prices are lower than those of competitors in order to “draw” buyers to your brand. Sales of private labels on e-commerce platforms are growing at an accelerated pace.

Advantages of private label for fashion marketplace:

  • Higher sales margins, exceeding the size of the standard commission, even if private label prices dump competitors.
  • Own control over pricing, discounts, and availability of commercial items.
  • Having a unique offer that competitors do not have.
  • Guarantees of availability of supply reflecting “hot” commercial demand.

Promotion of private labels is not fundamentally different from the promotion of any new brand or startup. Investments in promotion depend on planned sales volumes. The more ambitious the plans, the higher the promotion costs:

  • Marketing and direct advertising;
  • Promotion through your own channels, including social networks, affiliate programs, collaborations;

It is also desirable:

Creating a community brand, which involves creating your own social networks. networks and customer service programs.

In addition to this, a kind of publicity for private label is also needed — this is

  • High-quality content, presentation. It is recommended to have your own online store, at least as a “showcase” of a private label brand;
  • Working to increase your rating with cards and reviews.
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