Navajo Manufacturing focuses on creating private brands
DSN recently sat down with Deborah Levy-Abreu, CEO of Navajo Manufacturing, a multicategory manufacturer and distributor.
Levy-Abreu provides her perspective on the growing opportunities for retailers in the private label sector. Check out the conversation below.
Drug Store News: Can you describe your Private Label program and how it benefits customers?
Deborah Levy-Abreu: Absolutely. When a retailer or distributor wants to create and market products with their own brand name, they reach out to us to source the products and bring that brand vision to life. They have requirements that need to be met for product quality, packaging, and industry standards, and using a company like ours that already manages the manufacturing process provides retailers both a shorter timeline and a more secure avenue of procurement than building the product line by themselves. That way retailers and distributors can offer specific, unique products that enhance customer loyalty and provide higher profit margins.
DSN: Do a lot of retailers want Private Label programs? Is this a trend you’re seeing?
DL: Very much. We’re seeing most major retailers expand their private label brands among their higher turning categories, from food to electronics. And it’s likely not a trend as much as it is a new evolution in bringing products to the shelf. It’s another way that retailers are communicating and interacting with their customers. But you want to make sure that the products are constructed well, otherwise you’re communicating the wrong message. That’s why it’s important to vet and verify your products and manufacturers, and make sure they’re putting out the best for your customers.
DSN: So how do you develop products for Private Labels?
DL: We usually start with market research to identify the opportunities in their current offerings and to understand their consumer’s perspective. Once the products are identified, we start sourcing and prototyping. Then we go through testing and performance evaluations based on industry standards like UL or ETL. While that’s occurring, we develop the package design and branding with the retailer to create a cohesive visual message. After the product and packaging is finalized, then we can start producing and shipping to our warehouses or direct to the retailer.
DSN: Is there any Private Label product line you’ve done recently that’s made you excited?
DL: There was one with travel kits. Our Handy Solutions line has hundreds of trial and travel brands that we package in travel kits for retailers. But their customers might prefer one brand over another, and they see that in their sales—so they decide to create their own customized kit with their own private label branding. It’s a fast flexibility we don’t see in other products because it’s so easy to build and iterate.
DSN: What do you see in the future of Private Labels for retailers?
DL: More growth, definitely. Higher profit margins mean better deals for the customers, and that drives better perception. Not only that, shopping is more interactive than it’s ever been. The more impressions you can make on your consumers, not just from marketing but from the products made and recommended by your brand, the more they’ll trust and return to the brand. So when retailers are ready, we’re here—ready to help them bring that interaction to life.
