Personal care products may be the next big boon for the private label industry, aided by the economic downturn, social media and reality television. Lisa B. Samalonis, contributing editor at Beauty Packaging, noted private label goods sold well during the recession, and continue to gain even though the economy is rebounding. Personal care products, such as oral care, hair care, bath and shower, are expected to do well under store brand logos because consumers feel they can save money without sacrificing quality.
Samalonis quoted Carrie Lennard, beauty and personal care industry analyst, at Euromonitor International, who said personal care private label products only account for 2 percent of sales, so there is room for growth.
The article noted Target’s private label brand is starting to be viewed as premium, and said retailers should pay attention to their own line’s quality, price, promotions and store placements. Samalonis also quoted Tom Custer, director of client development, Interbrand, a global brand design firm located in Cincinnati, who predicted growth in this category and suggested retailers focus on package design and shelf placement to maximize personal care private label product profits.
New marketing opportunities for private label brands include consumer-backed trends like blogging, reality television and social media, noted Samalonis. Eco-friendly trends, sustainable ingredient sourcing and simple packaging are also important in this market.