The private label business model means great growth potential for factories, as the volume of orders and the reputation of large department stores are a valuable opportunity to increase the company’s profitability.
However, precisely because it provides important competitive advantages, this is not an easy business to maintain. Fierce competition for the shelves of major retailers requires your company to meet the demands.
Big brands need to maintain their reputation and purchasing volume, as this is necessary for their business to remain competitive in order to manage this demand. To achieve this, investing in technologies, optimizing internal processes, training and, above all, efficient machinery is a must to remain in this niche.
Continue reading this article and understand more about private label and how to maintain the quality and productivity of this demand.
High competitiveness in the private label market
The high competitiveness of the private label is due to the possibility of selling your pieces and products in large stores with a strong name in the market. Therefore, whether small and medium-sized industries or large ones compete for this space. Exactly for this reason, before companies sign a private label contract, they evaluate several aspects, focusing on your production capacity and, mainly, on the quality of what you can deliver, as they need to maintain their reputation, authority and good reputation.
The high level of demand for magazines
Magazines, such as Renner, Riachuelo, C&A and Marisa, dominated the private label market, as they are large chains with their own brand and present throughout the national territory. This means that they have a large and growing demand to be met. However, because they have a reputation to maintain, the high demand for parts and a rigorous quality control process, only clothing manufacturers with efficient management, innovative and automated processes are able to meet the demands they demand. Furthermore, they need to be in accordance with consumer behavior, their needs and purchasing preferences, and these characteristics must also be observed in clothing. After all, textile companies misaligned with the market, predominantly manual and outdated processes do not have sufficient production capacity and quality to meet the requirements of the stores.
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Productive and quality gains with private label
To compete with the big private label brands and be able to deliver quality products to the required demand, it is necessary to solve manufacturing problems and have well-aligned and structured processes. Below, we have separated three aspects that should be the focus of your management to achieve productive and high-performance gains.
Perform quality control
Quality control is a process or system used to prevent and identify failures, damages and defects in products. However, it is not just about checking piece by piece, but about adopting management, production and, mainly, technologies that automate and anticipate these problems. To achieve this, it is necessary to have very clear measures from the purchase of raw materials and innovative machinery to the inspection phases. In a scenario of industry 4.0 and technological rise, the textile industry has several resources to work on quality management and avoid falling standards.
Map suppliers
Supplier mapping is nothing more than collecting and recording information and data from your partners. This process facilitates the identification of the best suppliers, as their supply chain is directly related to the quality and productivity of clothing. If the raw material purchased is of low quality or has storage defects, the parts and production are compromised. Secondly, if orders to partners are not delivered on the agreed date, their demands are also harmed, and these events are fatal for the private label model and companies that work with them. After all, major magazines need to replenish their collections on pre-established dates, if you delay, it harms the entire cycle.
Invest in technology and process automation
It is no longer possible to escape technology and, consequently, process automation. It is very difficult, if not impossible, to meet the demand and requirements of private labeling relying on manual and outdated procedures. It is necessary to adopt a vision of innovation, agility and cost reduction that can only be achieved with management software and machinery that automate and increase the quality of production processes. This is a question of market survival and competitiveness. To be able to comply with the specificities and high demand of private label, it is necessary to focus on delivery quality and productivity gains. Therefore, if you have identified bottlenecks and problems in these processes, you need to adopt clear, organized and innovative management and strategies. To learn how to increase your production capacity, check out our post on how to maintain textile productivity with excess demand.