Digital Label Presses Help Keep Pace with Exploding SKU Counts

If you’ve paid attention to the retail shelves lately, you’ll know that the number of SKUs is exploding. According to 2023 Grocery Industry Report, many producers have doubled their SKU counts over the past few years. Health and beauty markets have also seen SKUs increases to account for different shades, sizes, and finishes.

Nearly every consumer brand is seeing the same trend — more variations, more sizes, and subtle copy changes to reflect market needs. The number of SKUs is on an astronomical growth spurt.

But it’s not just prime labels that are having to keep up. Durable goods are, as well. Let’s look at the possible variations (each necessitating a different SKU) in just one type of durable good, a chainsaw:

• Bar length (ranging from 10" for light-duty tasks to 24" for professional use)
• Power source (gasoline, electricity, batteries)
• Chain type (low-kickback chains for safety or aggressive chains for faster cutting)
• Handle design (rear-handle or top-handle configurations to suit different cutting styles or user preferences)
• Engine size (typically measured in cubic centimeters)
• Features (for example, anti-vibration systems, automatic chain lubrication, or tool-less chain tensioning, as well as different combinations of accessories)

That’s just one product out of countless consumer products. As buyers increasingly want products tailored to their needs, the SKUs count of pretty much everything has increased. Have you been to an independent coffee shop lately?

Real Challenges Faced by Traditional Manufacturing

This explosion in SKUs present a real challenge in the world of traditional analog printing. The cost to makeready a press, along with the associated costs of wastepaper and other consumables, make faster turns and shorter runs far more costly (unless your “shorter” runs are still in the tens or hundreds of thousands). But with digital label production, your customer can print runs as short as 100 labels (technically as short as one). This enables even small brands to cost-effectively produce labels that support their expanded their SKU counts.

Helping your customers expand their SKUs is part of the value that a distributor provides. In many cases, a small or mid-sized brand may not even consider expanding its SKU count, even if the product itself lends itself to small-batch production, because they don't realize that short-run label production is available.

Great Places to Start Selling

Intrigued? Here are some great markets to start selling shorter run labels to help those customers expand their product lines and better appeal to the needs of a variety of consumers:

• Artisanal food producers (bakeries, artisan cheeses, coffee roasters)
• Handmade cosmetic brands
• Independent wineries and craft breweries
• Local artisans and crafters (from potters to pet treat makers)
• Privately owned restaurants and shops that might want to private label products (restaurants rebranding local wines, bed and breakfasts branding local coffees or soaps)

Once you get your feet wet in marketing short-run labels to smaller brands, you can gain confidence in working with larger ones. Plus, you leave a legacy of truly happy (and more profitable) clients along the way. If you need help with selling ideas, work with a digital label provider with the expertise to help!