Private label ghee has attracted the focus for entrepreneurs as a viable B2B business option for marketing and retaining business in the dairy segment.
The startups or giant retailers and marketing companies looking for a private branded product for sale are finding great business potential in the ghee business.
Private label products are factory-made by 3rd party manufacturers. Existing ghee manufacturers offer the service of private label ghee production and marketing companies use this ghee for retailing and market supply under their personal brand name.
Private label ghee is a customized product. The retailer or marketing company can specify everything about the ghee under a private label. Its texture, aroma level, packaging, etc. are the key issues that the buyer can decide for the manufacturer. This is exactly having the facility of customized production under a specific brand name and not to have the burden of maintaining a production unit of ownership.
Private level ghee and other products are coming in focus. Presently, in The USA 15-18% of the US supermarket sales are occupied by private label products, according to Harvard Business Review. Private label dairy products are offering god business potential, ghee is certainly one of them.
The advantages of using private label ghee as a B2B product
The market potential is no doubt one of the reasons behind the private label ghee product. But there are certainly other prime advantages behind this business scheme. Check the main advantages are in outline details, which ensures overall control on the production without maintaining a manufacturing unit.
- Control over production – 3rd party manufacturers work at the buyer’s direction, and the buyer enjoys offering complete control over product ingredients and quality.
- Control over pricing – As there is control over the product quality of the ghee, retailers/buyers can also regulate product cost, and hence they can speculate the profitable pricing.
- Adaptability – Smaller or startup retailers can have the ability to go quickly to get a private label product against the rising market demand for a new feature, while bigger companies might not be concerned about a niche product.
- Control over branding – Private label products carry the brand name as well as the packaging design as planned by the retailer. This is an advantage that helps in brand management.
- Control over profitability – As the buyer gets the scope of ensuring control over the production costs and pricing, retailers, therefore, can perfectly control the level of profitability of the private level products provide.
Well, there are few disadvantages of dealing with private label ghee product, unless you can find out a reliable ghee manufacturing company. Some of these cons are,
- Manufacturer dependency – As production of the private label ghee is in the scope of a third-party manufacturer, it’s vital to partner with a well-established ghee producer. Otherwise, the product quality may not be satisfactory and consistent.
- Difficulty building loyalty – The availability of private label ghee is limited, maybe in a specific chain of outlets. That is why building loyalty becomes often difficult as the scope of wide retailing is often limited.
The success of private level ghee widely depends on three intrinsic factors. These are consumers, retailers, and manufacturers. The need, expectation, and consumer behavior decipher the demand side of the product. The allocation decision of the retailer creates an impact on the supply. The expertise of the manufacturer creates the quality assurance of the product, here it is ghee.
Furthermore, the environment within which the private label ghee product competes gets influenced by the number, affordability, and activities of the ghee manufacturers of the premium brands nationally popular.
Why retailers should do for private level ghee business?
Behind every business, profit, sustainability, and reputation management play a major role. Adding private level ghee in the product portfolio can help a retailer in some precise ways.
Worldwide there is a high demand for quality ghee
The new-age shoppers are now purchase-conscious, no matter if they are buying cosmetics or dairy products for the pantry. Ghee clarified butter is the 21st-century pantry super food, which conscious homemakers nowadays prefer to use for cooking and seasoning than any other cooking oil for versatile benefits. Good quality ghee has a recurring demand in the market. It is a potential grocery item that gets sold.
Ghee has a long shelf life
Although dairy product, it has a longer shelf life. If the retailer imports good quality ghee even I bulk quality, it is shelf-stable, and there is hardly any risk of product expiry or damage. Good quality pure ghee stays intact for 12-18 months from the date of manufacturing and even more if you keep thee ghee jar in the refrigerator.
Private brand ghee is lucrative for buyer and seller
Private brand resellers can get to buy customized ghee products from private ghee manufacturers at a competitive price, which keeps their profit margin quite big.
Alternatively, private level ghee manufacturer can increase their business volume in private level ghee making an agreement, while they don’t have the liability of marketing and product distribution. The two-way profit-making is one of the mutual impetus for selecting private level ghee products as a mutually convenient one.
How to find a good quality private level ghee manufacturer?
Online searching is the best way indeed, but you must check the manufacturer’s portfolio before selecting the service provider. A ghee manufacturer who has an impressive product portfolio, and who has already branded ghee product in the market is the ideal choice for your private label ghee manufacturer.
Milkio Foods is based in New Zealand, and Milkio ghee has already reached the markets of the USA, Australia, Taiwan, Saudi Arabia, Egypt, UAE, Singapore, Thailand, Japan, and New Zealand. This ghee manufacturing company produced USDA standard ghee in different ranges. Milkio Foods is already in private label branding and in ghee contract label manufacturing business. If you are looking for consistent quality private label ghee, Milkio is one of the best choices in hand.
If you want to now Milkio Private Label ghee manufacturing service, please browse at: Click Here
If you want to contact Milkio Foods to know about this business opportunity at Milkio please contact at: Contract Manufacturing
Planning to start your dairy business but you don’t want to engage yourself into the extensive manufacturing process?