3 key considerations when designing labels for value brands

These days, most modern consumers are more cost-conscious and choose brands that offer the best value. To help attract and retain customers looking for high-quality, affordable products, you need to think about how you design your product label. The label design should also help you keep production costs low.

Introducing a value segment for your products might seem like risky business, especially if you primarily offer premium brands. Value brands are often higher in volume and, therefore, have a smaller margin. Additionally, offering a value brand can cannibalize the sales of products in the premium category.

However, with prices in all product segments remaining high, the demand for value brands is expected to persist. You should reflect on whether it’s still feasible and profitable not to include value offerings as part of your product portfolio. Value brands can create new possibilities within the market.

Looking at how the market is evolving, there are good chances for acquiring market share by offering a value brand. For instance, you can still offer a premium version of an edible oil while providing a lower-priced option as well. If you already have a value brand ready to launch, you should highly consider pushing it out on the market now.

Read more: Labels: A window between brand and consumer

Material, size, and decoration choices

Before introducing your value brand to the market, certain labelling factors need to be considered in order to lower production costs and sale prices. Here are three key things to keep in mind:

1. First things first – choose the right label material. It should differ from the materials used for premium brands and preferably have a different look to it. For instance, while premium sunflower oil labels are commonly made using PP silver material, a value brand label could use self-adhesive paper materials instead and thereby reduce costs.
   
   
2. A second factor is the size of the label. Premium brands usually have larger labels, while value brands opt for smaller labels to save costs and contribute to a greener environment. This is particularly important for value brands, as they produce higher volumes of products.
   
   
3. Lastly, don’t forget about the decorative embellishments. Foiling is a popular choice for premium brands because it attracts attention and adds a touch of exclusivity to the product. Value brands can opt for more cost-effective alternatives like gold ink to add a shimmering effect. Textured effects, raised effects, and metallic inks are also suitable and eye-catching choices.

Read more: 5 things to consider before designing your new labels

Exploring new markets with value brands

Introducing a value brand not only opens new doors in other markets with new players but also catches the attention of consumers who are actively seeking low-price categories. At Skanem India, we strongly advise brand owners to launch value brands to gain new market share and expand their customer base.

If you need guidance or have any questions about labelling options for value brands, please don’t hesitate to contact us. You can also download our free checklist and gain new insights on how you can improve your labels: