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21 Jan 2022
Private labels, once a way retailers would offer comparable alternatives at a lower price to rival leading name brand products in the middle-tier or economy-tier, are now aiming at premium price tier, according to industry consultant Colin Hanna of Price Hanna Consultants.
She believes that the old private label strategy simply no longer describes the full picture of how retailers use their private label brands and products to attract customers to stores today. This has been particularly true in the absorbent products category where major retailers like Walmart and Target have reached partnerships or exclusivity agreements with independent brands.
As one of the world's largest retailers, Kroger's private label offerings last year offers a good illustration of the situation. In 2021, Kroger introduced over 600 new items to its private label offerings, and 60% were categorized by the company as "premium" lines.
An expert in contract manufacturing and private labeling, American Hygienics Corporation (AHC) has been committed to the production of a variety of premium high-quality wet wipes and diapers products for over 20 years.
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