Private label partnerships with retailers: a risk or opportunity for producers?

Abstract

PurposeThis study identifies benefits and challenges of PL partnerships, and recommendations to improve the PL partnership process.Design/methodology/approachQualitative data was collected via semi-structured interviews (n = 8) with Irish PL retail buyers (n = 4) and producers (n = 4). Data was coded and thematically analysed.FindingsThree key themes were identified. Theme 1 provides an overview of the benefits of PL partnerships for producers (e.g. volume driven orders, increased efficiencies) and for retailers (e.g. unique products, meeting consumer demand). Theme 2 presents challenges of PL partnerships specific to small and large producers (e.g. small producers may need significant investment to upgrade facilities, while larger producers may require significant volume to justify adaptation of production lines). Challenges common to both (e.g. risks related to short-term contracts, concerns about brand identity) are also discussed. Theme 3 summarised recommendations for successful PL partnerships generally (e.g. setting clear expectations and goals, building rapport and trust), and recommendations specific to producers and buyers specifically (e.g. producers should diversify customers to reduce risk, and retailers should communicate needs and direction).Originality/valueThere is currently limited research on PL partnerships between producers and retailers. This study addresses this gap by identifying key aspects for producers to consider when entering PL partnerships and key aspects for retailers to be aware of to help improve the attractiveness and success of these partnerships.