Capitalizing On Private-Label Brands Through Extended PLM

Retailers are catching on to one of the hottest trends to hit the industry since skinny jeans: private-label ap­parel. Retailers are devoting an increasing amount of floor space to their own brands, and with good reason. Exclusivity is a major benefit of carrying private-label merchandise, since customers can’t buy the private brands anywhere else.

Higher profits are another key driver; private-label brands can increase profit margins by up to 20%, since retailers can control costs and margins by managing the design and production process. The rise in cost of raw materials has caused private labels to become even more attractive, as retailers and brands seek to offset costs by focusing on more profitable lines.

Private Label Requires Complete Supply Chain Visibility

Taking on a private-label initiative can mean accruing additional overhead, since retailers must have the ability to design and source products; manage all the details of production, quality control, compliance and testing; and ensure that the goods are delivered on time.

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