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This is Bob Saunders, vice president of sales for Wise. Labeling has become a marketing and branding tool as essential as any other tool in a marketer’s arsenal. With the right supplier, distributors who can sell a variety of label types can significantly deepen their relationships with their accounts and expand their books of business. With the advances in digital label production, distributors can also bring their customers wider options than ever.
So why sell labels in the first place? Because the market is booming!
The label industry is experiencing remarkable growth, not only in prime labels but also in industrial or durable labels. In fact, the industrial labels market is three times the size of prime labels. Prime labels are important because products have to look great and market the product on the retail shelf or an e-commerce site. But manufacturers also need durable labels that provide reliable tracking and identification for warehousing and shipping. This means labels that can withstand a wide variety of environmental challenges, including extreme temperatures, moisture, and chemical exposure.
If you are selling prime labels but not durable labels, durable labels open many new avenues for profit.
Whether labels are prime or durable, the trends in the marketplace are clear. These changes are only being accelerated with the options for digital production. What are the main trends you need to be aware of?
First is shorter runs. Whether customers are breaking their runs into smaller, more targeted segments or simply shifting to a print-on-demand model, runs are getting shorter. For both prime and durable labels, digital label production allows customers to print only as many labels as they need as they need them. This translates into savings in warehousing costs and reduction in inventory obsolescence. Second is customization: Consumers increasingly seek shopping experiences that cater to their individual preferences, with 70% willing to spend at least 10% more on personalized products. Third is short product lifecycles and multiple SKUs. The number of SKUs is on the rise, while product lifecycles are shrinking. Retailers like Shein, for instance, introduce thousands of new SKUs daily, reflecting a consumer appetite for variety and novelty.
The fourth trend is sustainability. The emphasis on sustainability continues to grow, with a recent survey revealing that 71% of consumers have chosen products based on their sustainability credentials, and 82% are willing to pay more for eco-friendly packaging. The next trend is the growing emergence of small brands. Smaller brands are striving to compete with larger companies, while big brands are adopting the agility of smaller ones. As runs get shorter and shorter, the question is how to turn these trends into production strategies. While there are plenty of label runs being produced on traditional analog presses, digital label production becomes increasingly important. Our advanced HP Digital Label Press allows for both short and long-run production of labels while maintaining the quality of offset or flexo printing. At the same time, digital label production enables other label trends such as:
Strategic production, Variable content (like sequential numbering and barcoding), Randomized production, Hyper-customization, Personalized production, and Prototyping and sample production. Digital labeling supports sustainable practices too. By eliminating the need for plates or cylinders and transitioning to a print-on-demand model, we reduce waste and lower our customers’ carbon footprints.
How can you benefit from these label trends, especially in light of the shift to digital production? Reflect on the following questions:
How can your customers gain from switching to a print-on-demand model to minimize inventory and waste? Are there SKUs they could segment into smaller, targeted offerings to attract niche markets? How would flexible order volumes based on demand improve their operations? Could adding sequential numbering or barcoding enhance their tracking and inventory management? This exercise could prove invaluable! Access to digital label production may be the breakthrough opportunity you’ve been seeking.
Until next time! Thanks for listening, and have a great day!