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Private label "grows up" for beauty salon market

Once thought as low cost alternative to national brands, private label partners allow salon owners to launch personalized brands, extending their marketing identity.
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FILED IN:  Package design  > Structural
     
We keep hearing how private label is revolutionizing the retail grocery market, with store brands sometimes outshining national brands by taking more chances with things like package design and shelf display strategies.

This change is happening on other fronts as well, such as beauty salons, according to behindthechair.com, a web site for salon owners.

But these sophisticated services, offering everything from custom formulation to package design, are not for everyone. Salons have to be well established in their neighborhood and do a reasonable amount of retail hair and beauty product sales.

Private label partners then conduct an audit to determine what the salon’s own brand will need to look like to succeed. This could include a discussion of type of customers, architecture of the building, even whether the salon is next door to a Chanel boutique or a Banana Republic.

An in-house package design team uses this information to customize a look to the personalized line, often giving national brands a run for their money, and allowing salon owners to capitalize on customer loyalty with high-margin sales.

The Private Label Show will be held in Chicago, November 15-17, 2009. PLMA’s web site offers these statistics to help understand the growth private label has been experiencing.

“…Across all channels, consumers are buying more private label than ever before. Nielsen reports that private label sales have increased by 12% in supermarkets, drug chains and mass merchandisers since last summer. Total sales for the year reached $80 billion and unit market share rose to more than 22%.

The trend is going to continue, too. According to a new Roper survey, more than 60% of all shoppers now say that they purchase store brands frequently, up from 40% just three years ago. Eight out of 10 consumers say that store brands are as good or better than national brands and nearly 20% of shoppers expect to buy more private label in the year ahead.”

I’ll be walking the show floor and hope to delve more into how these private label companies are setting up package design teams, and how these teams pursue cutting edge design strategies.

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