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What Is Product Labeling?

May 27, 2022

What is product labeling? Traditionally, a product label consists of its name and the list of these ingredients. However, this is not always true as there are different types of product labeling. It can help us in understanding what we are supposed to add to the product (as an additive to improve its quality) or it can also tell you what we need to avoid adding (since it will mean either a change of the product or its label). In this article, I am going to explain the various type of product labeling, the ingredients required for the different types, and the information required on the label

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Product labeling in the supermarket

What Is Product Labeling?

Product labeling is a promotional tool that helps companies sell products by communicating relevant information to customers. Companies design labels to attract consumers' attention, stand out from competitors and provide valuable information, such as ingredients and nutritional facts. Product labels can be found on food packaging, hygiene products, clothing, electronics, automobiles, and other consumer goods. The information provided on labels should be clear and accurate so that consumers can make well-informed purchasing decisions.

Why labels are important?

Labels are an important part of the retail industry, and they serve a number of different purposes. Here are some of the more common functions that labels perform:

  • Labels provide product information

This is the most fundamental function of labels in the retail world. Labels are important because they provide a variety of different functions. They can provide information about a product, such as a price, nutrition value, expiration date, and more. Additionally, labels can help marketing teams promote products with discounts and special offers.

  • Labels serve as sales tools

Labels also help people make buying decisions by conveying information about why they should buy a particular item. Often this information takes the form of marketing copy or imagery, with text that helps convince shoppers to choose one brand over another or even just to make a purchase in general.

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Electronic labels help improve brand image

  • Labels create brand awareness

For many retailers, having their products identified by specific label designs is part of their branding strategy. People may not be able to recognize all brands from their logos alone, but if they are familiar with a certain color scheme or design style in a label, they will know what it represents when they see it on store shelves.

  • Labels for industry-specific requirements

Labeling systems can be used to track inventory, as well. For example, businesses in the food industry often use labels to indicate an item's expiration date. In certain industries, labeling systems are also designed to monitor hazardous products or materials that need to be stored safely.

Labels are also critical for shipping orders to consumers and businesses. When you order a product online and it arrives at your doorstep, you may not think about the label on the package. However, without this label, the package may never arrive at its destination.

What Are The Label Requirements?

Almost every product that you buy has a label. It may be a simple price tag on a pair of jeans or a nutrition label on the back of a cereal box. Labels can be an opportunity to make your brand stand out from the crowd and offer your customers valuable information about the products they buy from you.

Labels are required for all products that are regulated by the Consumer Packaging and Labeling Act. This includes food, drugs, dental products, cosmetics, medical devices, household hazardous products, and packaging. These labels must include information like:

  • Product Name: The product name must be displayed in a clear and prominent manner.

  • Product Price: The price must be clearly displayed.

  • Discount Information: If the product is on discount, it must display the original price and the discounted price.

  • Product Description: A brief description of the product and its details must be provided.

  • Inventory in Stock: The number of stocks left should be displayed.

  • Product QR Code: All products are required to have a QR code that can be scanned to trace back to the origin of the product and ensure quality standards.

  • Company Name: The company name should be displayed in a prominent area of the label.

  • Product SKU: Each unique product has an SKU (Stock Keeping Unit). This is a unique identifier for every item in your inventory that you use to manage your stock. Each product should have its own SKU that can easily be scanned for information about the item.

  • Brand Name: This is for customer awareness. The brand name will help your customers recognize your products and come back for more purchases from you.

  • Addresses: The postal address of your company or a contact number must be provided on the label so that customers can easily get in touch with you for support or queries about your products.

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Price label

Types of Labels

Today, labels have evolved into an indispensable part of packaging design. They play a key role in creating a brand image. Over the years they have transitioned from simple paper labels to modern electronic shelf labels that enable retailers to remotely change prices and other information.

Paper Labels

Paper labels are die-cut printed stickers on a paper backing affixed with glue or pasted manually by hand. They come in various shapes, sizes, and colors as per requirement. They come in different sizes – standard size (2 x 4) inches, Custom size (3 x 5) inches, and others.

Modern labels

Modern labels are technology-based labels like electronic shelf labels that are controlled by a system and display all the information and information that can be changed with one click. Modern label systems typically contain all the product information, pricing, and promotional material required by any retail outlet.

Modern Labels vs Paper Labels

Modern labels are technology-based labels like electronic shelf labels that are controlled by a system and display all the information. The information can be changed with one click on the computer or mobile application. On the other hand, paper labels are printed labels affixed to a product by hand or machine. These cannot be changed remotely and we have to manually make changes on each label if there is any change in price or other information about the product. This procedure is time-consuming and tedious.

MinewTag has made the modern unique and fully customizable Electronic Shelf Labels. Those MinewTag’s ESL is faster and more reliable for any kind of product and shelf labeling.