Private Label Natural Cosmetics Drive Retail Market Growth

Private label natural cosmetics and personal care products are becoming an increasingly successful instrument in increasing market share and maintaining a loyal customer base. Retailers of all types, including drug stores, supermarkets, pharmacies, department stores and big box mass merchandisers are all experiencing the rising popularity of natural products. Global sales of natural cosmetics are increasing by more than U.S. $1 billion a year, and private label brands are a major driver of market growth.

Over a three year period private label or “store brand” sales have increased by 14% to $86.4 billion in U.S. retail outlets, accounting for a 17% dollar share, according to PLMA, which is based on data from The Nielsen Company.  And 57% of all shoppers now say that they purchase store brands frequently, according to GfK Roper.

“The key to capitalizing on the market growth is to inspire trustworthiness and allegiance to the store brands’ loyal consumers,” said Francis Verdan, founder of Verdan, a private label manufacturer of natural deodorant.  “In order to accomplish this goal the private label product must be thoroughly incorporated into the long-term business strategy and marketing mix of the store.  And it is vital that the store and manufacturer work together to ensure the product remains emotionally appealing to the target audience.”

Even during the global recession, the worldwide natural cosmetics and personal care market continued to post healthy growth of around 12% in 2009, accounting for a U.S. sales gain of 8%, amounting to $3.5 billion, and a 9% sales gain in Europe with an estimated value of 3.3 billion Euros, according to US-based consulting firm Kline & Company.   

Retailers are now realizing that they cannot only rely on their inventory of national brands.  The margins on national branded products are simply too small and no customer allegiance exists between the store and the national brand.  Creating a proprietary store brand, exclusively available at a specific retailer, can draw consumers to the store and create a loyalty that other stores do not have.

“Although natural crystal deodorant is not new to the market its popularity and demand are at all time highs,” said Verdan.  “Spurred by the growth of the consumers’ desire for natural products, crystal deodorant is evolving into a sustainable and profitable product. It is enabling retailers and brands to expand their portfolio of products by relying on the consumers’ wants rather than the national brands’ existing products.”

Private label products allow brands and retailers to diversify their offerings and compete more effectively with existing national brands, or to enter into an entirely new product category that has been dominated by a few select players.  Retailers can partner with specialty contract manufacturers that provide products which exceed the quality of national brands. And consumers agree. 97% of consumers who did switch from a national brand to a store brand were pleased with their decision, according to a study performed by GfK.

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Verdan is the premier supplier and private label manufacturer of crystal deodorant – natural deodorant made from mineral salt. For more than 30 years, Verdan has been providing clients worldwide with exceptional service and the highest quality all-natural crystal deodorant that provides 24 hour odor protection without the need of synthetic ingredients or chemical agents. For more information please visit us at http://www.verdan.net.