Labeling has become a marketing and branding tool as essential as any other tool in a marketer’s arsenal. Distributors who can sell a variety of labels (prime, durable, in short runs, long runs, and everything in-between) can, with the right supplier, 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 before.
First, why labels? The answer is because the market is booming!
The label industry is experiencing remarkable growth, not only in prime labels but also in industrial or durable labels. Sure, products have to look great on the retail shelf (or on 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 aren’t already selling durable labels, the distinction between prime and durable labels opens up many new avenues for profit.
Key Labeling Trends to Watch
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?
- 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.
- Customization: Consumers increasingly seek shopping experiences that cater to their individual preferences, with 70% willing to spend at least 10% more on personalized products.
- Short Product Lifecycles and Multi-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.
- 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.
- Emerging Small Brands: Smaller brands are striving to compete with larger companies, while big brands are adopting the agility of smaller ones.
Translating Trends into Production Strategies
As runs get shorter and shorter, 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
- 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.
Assess Your Customer Needs
How can you benefit from these label trends, especially in light of the shift to digital production? Reflect on these 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.
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