Private labeling is blooming in the plastic industry

The demand for private label products to retail chains within the building industry is growing. Primo has been offering private label (also known as white label) products to retail chains for some time, and demand is growing. Gasket and sealing specialist Benjamin Hespeler shares his insight on the potential and future of private labeling.

When you buy tools at a supermarket, for instance, they have likely been purchased private labeled for sale under the store’s own brand from a third-party manufacturer.

The overall idea, then, behind private labeling is that big retail chains with no manufacturing facilities of their own can market Primo’s high-quality products under their own brand. This gives our retail customers a great advantage.

The potential of private labeling

The end-users of our products – i.e. craftsmen or construction companies - need a steady flow of materials and do not always have the time to search around for different options. Furthermore, they tend to only trust a single brand. Therefore, they prefer doing business with fewer retailers they know and trust, which also makes logistics more seamless.

In other words, the end-users are looking for a one-stop-shop for all their product needs, which is what all major retail chains aspire to be. By marketing a wide range of products under their own brand, retailers can serve as the sole provider of all materials to their customers and thus increase turnover.

Primo can help by delivering private labeled products to retailers. Here at Primo, we sell all kinds of private label products. Every standard product of ours can be private labeled. Popular choices among customers include our wing rebate, door and window ledge gaskets. What all these products have in common, however, is their premium quality and large turnover potential for retailers.  

Online shopping increases demand

Business is increasingly conducted on the Internet. Customers are now only a few clicks away from getting access to all the products they need in one place.

By marketing private label products under their own brand online, there is a good chance that retailers will increase online sales, as it enables them to offer a wider range of products to a wider customer base.

Logically, if one label offers the entire package, no one will bother looking elsewhere. This is ultimately the main reason why retailers should market private label products; their customers love it fast and comfortable.

As for the gasket market, demand for private label products used to be low. But as more and more customers do their shopping online, I anticipate an overall rise in demand for private label products.

That is why, here at Primo, we are currently exploring how we can offer more private label products to add to our already extensive portfolio in the near future.

“The term ‘private label’ covers Primo products that are sold to retailers and then rebranded to make it appear as though the retailer is the actual manufacturer of the product.”

Benjamin Hespeler

Sales, Gaskets for windows and doors, Primo Germany