Nutraceutical Knowledge

Easiest & Most Profitable Private Label Products

profitable-01.jpg

Private label supplements otherwise reffered to as white label supplements offer many advantages over common products. Those include bigger profits, single source market opportunities; they fit perfectly into modern marketing as brand loyalty is easier to achieve. All these means greater bottom line success for those companies with outstanding products. 

Why Private Label Brands Are Fueling the Supplement Industry Growth

Two phrases come to mind - Baby boomers and Millennials. The Baby Boomers are aging and dealing with their lifestyle choices through the emergence of diseases such as heart disease, Alzheimer's, and auto immune diseases.

The Millennials now outnumber Baby Boomers, and they face some very difficult health decisions. They will ultimately inherit a world where there are fewer effective antibiotics, fewer resources, and face the consequences of diseases such as the Zika Virus.

Both groups are looking for ways to increase their personal health levels, and both are groups that are large enough to disrupt traditional healthcare markets. Also, the connectivity of our culture, both old and young make people today the most aware population in history. 

People have the internet, and they use it to understand health, preventative care and to find alternative approaches to their health issues. These are people who direct their own healthcare and supplements play a huge role in that process.

Our current population is less likely to rely solely on their doctor and more likely to combine their primary care doctor's advice with information that they find online and then merge the two. This is another positive about why health supplement and vitamin markets are growing quickly.private label brands blog image 1

In 2007 the U.S. retail sale of vitamins and nutritional supplements was $23.8 Billion dollars. [1]

In just ten years, it has grown to $36.1 Billion. That is a $12.3 Billion dollar gain in just ten years. That massive growth is important because it shows us a couple of things.

One, as Millennials come to face the fact that they will have the most expensive health care future, they are focusing more on current health.

It also shows us that Baby Boomers are looking for ways to boost their current health and for products that work to manage diseases such as heart disease, cholesterol issues, type II diabetes, and a host of others. [2]

As a group, Millennials are more inclined to invest in their health than any other group in history. That means picking quality foods, supplements, and being proactive about their health today and in the future. Private label brands offer all of those pain points.

Why Do Private Label Brands Have Higher Margins?private label products image 3.jpg

The biggest expense for many products is not its' manufacturing cost, but the marketing and packaging of the product.


For that reason, smaller brands and private label products often have lower total costs than do mainstream brands.

Private label companies also are more maneuverable in comparison to big brands too. These companies fill niche markets, and they do so very well without the high costs national brands face.

One key factor is niche marketing, which is easier to achieve through social media and content marketing than is traditional marketing methods. 

Social media marketing and content marketing both fit squarely into the fact that health supplement consumers are concerned about many things and make buying decisions based on odd factors, such as whether or not a brand contributes to ozone depletion or if it has a negative environmental impact. Private label brands address these concerns with packaging that is bio friendly [4] and with quality ingredients that address consumer concerns over fillers, dyes, and GMOs. [3] This is a fact that national brands are scrambling to overcome.

For Millennials, brand loyalty is a low priority which is another reason they disrupt markets. That is a huge positive for private label brands. Also, being able to be personal with a customer group is also key. It makes the process of finding like-minded consumers easier much easier and having a personal connection helps ease buyer anxiety. All of these factors mean that private label brands can set their own pricing schemes and still do well against traditional brands because people are buying into the concept as much as the product. 

Less Competitionprivate label products image 4.jpg

Private Label Brands face less competition on several levels. First, private label brands are free from fitting in because their consumers are more interested in reading labels than picking a produced based on color and font. [6]

If you have ever tried to pick out cold medicine, you should immediately understand the power of less competition. Pharmacies and grocery stores have entire aisles full of products that look alike, sound alike, and offer many of the same benefits.

With private label brands, you lose all of that and for many brands that loss is a wonderful thing. Standing alone makes you different from everyone else. Where traditional brands try to blend in with the crowd, private label products stand out from it. 

Also, you don't have to put your products in every store. Because you have smaller batch runs you can target product placement exactly where it matters the most. You have more options about picking the right outlet for your product without picking them all. What this means is that you can choose which stores sell your product which not only helps your brand but the store too.

Consumers will stop at a store specifically to buy a product that is not found elsewhere. That is another way that private label brands differentiate themselves from national brands. Plus, when your product is available in limited locations, you drive consumers to that location, and that process means that you have more control over advertising and marketing, which helps you minimize the cost of both. 

Sell Online and Build an Ecommerce Brand

private label products image 5.jpg

Online stores are a big deal for private label producers. Millennials are more willing to shop online than any other group of consumers. 

This gives you an advantage in both selling and marketing, especially in marketing venues such as social media and via content marketing.

With good marketing and a personal approach, your brand might become one of the most profitable private label products.

There are many examples of personal brands that are making small fortunes without having to sell their products to large corporations. This also works because you have smaller volumes of products to sell and more opportunities to market them. 

The market share within health supplements is large. However, leading companies hold less than one-quarter of the entire market. [5] That fact tells us that there is a lot of room to capture markets share within the industry. There are many forms of marketing, and private brands can target customers across many of those channels or pick the channels that appeal most to their buyer personas. The higher profits and smaller batch costs make private label products an easy entry opportunity. With more consumers looking for ways to boost health opportunity is knocking. 

Most Profitable Private Label Products

There are many private label brands that are very successful. At the current time, personal products are raking in cash. [7] They include:

  • Supplements
  • Lotion
  • Nail Polish
  • Skin Care Products
  • Makeup 
  • Knife Sharpeners
  • Alarm Clocks 
  • Flashlights
  • Decals

There are many ways to break into the private label market. If you have an idea for a private label product, just keep reading and discover if it is a viable idea. 

Discover if Your Private Label Product is Viable

There are a couple of ways to go about this. First, study what's happening on Amazon for similar private label brands. Be sure to read the reviews to get a better understanding of what consumers are saying. By understanding what is moving in the marketplace, you gain a clearer picture of what your potential market is and whether or not the product is viable. As you read through the reviews be sure to note the complaints that are not product specific as they tell you what your customers will expect from your company rather than your product.  

You can also search for websites or domains that are for sale on sites that sell such. Higher prices can indicate a stronger market or an emerging trend. You don't have to buy one of the sites, but they do give you a picture of what people are shopping for. You can use those ideas to formulate your own domain name and website without the higher expense.

Once you do the research entering the market is all about marketing your products, finding a producer, and then engaging your market with your product. If you want to learn more about the process, reach out to us. 

 Sources : 1.  http://authoritywebsiteincome.com/19-profitable-amazon-fba-private-label-product-ideas/

2. http://yourbusiness.azcentral.com/advantages-private-label-branding-11338.html

3.http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/cashing-in-on-the-booming-market-for-dietary-supplements