What Are Private Labels?

Furniture retail is an industry that has consistently faced complex business issues. Inflation, supply chain disruptions, and material shortages have made the operating environment even more complex over the last few years. To combat these challenges, several retailers have recently turned to private label for competitive differentiation, brand awareness, and increased sales. If you have considered private labeling but are still determining a fit with your business, read on.

Private labeling has many advantages, and with the right partner, is available to retail chains of varying size and scale. According to Statista, as of 2020, 89% of U.S. consumers said they trusted private brands just as much or more than national brands. This data is reassuring to an increasing number of retailers who feel stuck, and in some cases overrun, by wholesale partners with well-known brands. They understand the national partner’s brand has credibility with a large number of consumers. But that credibility comes with a price in the form of reduced profits and less control. With the Statista study and similar data in mind, small and medium-sized retailers are warming to the idea of private label. Atop the list of private label benefits are greater control over your business. Specifically, an approach that allows retailers to offer customers products they need wrapped in a memorable sales experience. In addition to being more memorable for the consumer, the interaction has become more collaborative and successful for the sales team.

The internet has democratized information. This has created a generation of ultra-informed shoppers searching for the highest value for their hard-earned dollars. A poorly timed statement about a well-known brand that conflicts with the consumer’s research may result in reduced trust and, worst case, an abandoned sale. The salesperson is disappointed to have lost the sale, and as the retailer, you may have lost the customer for life. Private label products are a path to remedy this challenge. Salespeople embrace private label for a few reasons. First, it’s a product made specifically for and sold by their employer. Sales professionals have a sense of pride in these products, especially when they offer the same excellent quality but at a lower price than the national brands. Second, because less is known about private label products, the sales staff is more likely to delight the customers by introducing them to an option they might not have considered otherwise. Third, loyalty. Private label products create a connection with the retailer and their staff that has a lasting impact beyond the initial transaction.

The best private label brands are created with the same features and quality materials as national brands and come with better prices. This combination attacks the value shopper segment on the hunt for products offering innovative features, comfort & style. Product development activities are difficult and expensive, putting them out of reach for some retailers. Partnering allows retailers to offer products with features and benefits proven to delight customers without the burdensome costs associated with trial-and-error undertakings of their own. Even if a product could be successfully launched, establishing an efficient supply chain operation has become more than a full-time job. It starts with finding a partner(s) to mass-produce your product, in some cases on a different continent. This effort requires several logistics partners to get finished goods into your warehouses and showrooms. Equally crucial to production & procurement is the scale of the operation. Small-quantity batch runs are expensive due to reduced efficiencies. Large quantity runs come with the risk of overstocking products that are not proven success stories on the showroom floor.

You know your customers better than anyone. You know the products and services they desire and the type of sales experience they expect to tie it all together. Private label products enable you to customize your product line to fit the needs and wants of your target market. It also allows you to develop unique warranty and rebate programs designed to increase brand recall and customer lifetime value. Let Viscosoft bring your business into the world of private label.

Viscosoft’s private label program offers retailers access to the following:

• Multiple lines of innovative mattress protectors, pillows, and mattress toppers

• Eye-catching product packaging

• Customized branding options

• Competitive pricing

• Best-in-class manufacturing facilities in the U.S. & overseas

• Efficient logistics with constant and transparent communication

Viscosoft has been an experienced brand in the sleep category since 2007. We are committed to remaining educated about the information that affects our industry so we can continue to be a trusted resource for our customers and private label partners. We know how hard it is to start a business and how much effort is required to keep it running. That is why we value your business just as we do ours. We take the time to get to know you, what you would like to accomplish, and how we can best assist you. What Viscosoft offers is a partnership.