20 Feb What Is Product Labelling?
Product labeling is the information you see on the packaging of items like food, clothes, or electronics. It’s not just about listing ingredients or showing a barcode—it’s how companies communicate with shoppers. A label can tell you what’s inside, how to use the product and why you might want to pick it over another option.
Understanding Product Labels
A label isn’t just decoration. It’s a tool to give people the facts they need. Labels often share details like a brand name, key ingredients, how to use something, or important safety tips. Beyond that, they also help products catch your eye. Plus they keep your product following legal guidelines.
Imagine picking up a drink. If you see “100% natural” or “sugar-free” in bold letters, it might sway your decision. Shoppers want honesty and when companies offer it, people are more likely to buy from them.
What Makes a Good Product Label?
To really connect with shoppers, a label needs to do a few things well.
#1 Be Clear & Easy to Read
Words should stand out and be simple to understand. If the font’s too fancy or too small, people might miss your brand completely.
#2 Include Key Details
This can be the name of the item, the company logo, and important dates like when it expires. If it’s food or medicine, it should also say what’s inside and how to use it.
#3 Look Professional
A neat and well-designed label makes a product seem high quality. It can show the effort a brand puts into its work which ultimately reveals a lot about your product quality.
#4 Share Safety Info
If there’s a risk—like allergens in a cake mix or sharp edges on a tool—this needs to be spelt out clearly following local government legal guidelines.
Types of Product Labels
Not all labels are the same. They’re created to meet different needs and provide specific kinds of information. Here are four common label types.
Brand-Focused Labels
These labels highlight the company name, logo, or design. Think of the bold “Nike” swoosh—it’s instantly recognizable and ties the item to the brand.
Informative Labels
You’ll find these on things like canned soup or cleaning sprays. They tell you what’s inside, how to use it, or even how to store it.
Descriptive Labels
This is where words like “organic,” “handmade,” or “locally grown” pop up. They help tell a story about the item and make it appealing to specific shoppers.
Quality Labels
These are stamps or seals that show a product meets certain standards. For instance, “Grade A” on eggs tells you they’ve been checked for quality.
What Are the Functions of Product Labels?
Ever picked up a jar of jam or a box of cereal and wondered what’s inside? That’s the magic of a label—it’s a tiny, hardworking part of the product. Labels don’t just sit there looking pretty; they talk to you, guide you and sometimes even save you from a bad day. Let’s break down what these little messengers really do.
They Spill the Beans
As Steve Jobs once said – ‘packaging can be theatre, it can create a story.’ Labels are the storytellers. They give you the lowdown on what you’re holding. Maybe it’s a snack bar packed with nuts and dried fruit, or a shirt made from organic cotton. Whatever it is, the label lays it out plain and simple. It’s like the product’s elevator pitch—short, sweet and to the point.
They Watch Your Back
Everyone has seen a warning about peanuts or “Keep Away from Children”? That’s the label looking out for you. It flags risks, whether it’s a hidden allergen or a chemical that shouldn’t touch your skin. Labels act like a responsible friend who tells you, “Hey, maybe don’t eat this if you’re allergic.”
They Make You Trust the Brand
A clear, honest label feels like a firm handshake—it builds trust. When you know exactly what’s in a product and why it’s there, you’re more likely to buy it again. Statistics show that 94% of consumers are more likely to be loyal to a brand that offers transparency including clear and accurate product labelling. Nobody likes surprises when it comes to what they’re eating or using.
They Turn Heads
Have you ever bought something because it just looked cool? Labels are a part of that decision. With sharp designs, bright colors, or even a quirky font, good product labelling grabs attention. It’s like spotting an old friend in a crowd—they just stand out.
They Keep It Legal
Rules are rules and labels play by them. Certain products need to show details like calorie counts, manufacturing dates, or safety certifications. It’s not just about following the law—it’s about giving you peace of mind that someone’s double-checking things.
They’re Your Cheat Sheet
Don’t know how to cook that frozen lasagna? Check the label. Unsure how to wash your new sweater? The tag’s got you covered. Labels aren’t just there to sell—they’re there to help. Think of them as the product’s personal assistant.
They Show Off a Little
Labels aren’t shy about bragging. If a product is “vegan,” “plastic-free,” or “locally made,” you’ll see it front and center. It’s not just marketing—it’s about connecting with people who care about the things your brand embodies.
How is Product Labelling Regulated in the US?
Laws in the United States make sure labels are clear, honest and safe. This is to protect people and make shopping fair.
For food, the FDA (Food and Drug Administration) has rules about listing ingredients, showing calorie counts and flagging allergens. If you’ve ever seen a peanut allergy warning, it’s because of these laws.
For toys, electronics, or other goods, safety warnings are required. Labels must let people know if something could be risky, like small parts that kids could choke on. Breaking these rules can lead to recalls or big fines for companies.
Designing a Great Label
Making a label isn’t just about slapping some text on your product. It’s about understanding what catches the eye and what people want to know.
Using Colors That Work
Different colors send different messages. Green often means “healthy” or “eco-friendly.” Red can grab attention or create urgency.
Keeping It Neat
Crowded labels with too much information can overwhelm shoppers. Clean designs that highlight the most important points work best.
Making It Simple to Read
A font that’s easy to read and the right size can make all the difference. Shoppers need to get the key information quickly, especially when they’re deciding between products.
The Rise of Electronic Shelf Labels
There was a time when price tags were sacred. Neatly printed, carefully placed, and utterly unreliable. The numbers on the shelf didn’t always match the ones at checkout, and customers—rightfully suspicious—would wave a tag at the cashier like a lawyer presenting Exhibit A.
It was a flawed system. Messy. Slow. Bound to fail.
Now, stores are quietly replacing their outdated paper labels with Electronic Shelf Labels (ESLs)—small digital screens that change prices automatically. No ink, no paper, no confusion. And the best thing, they show much more than prices and can be deployed as product labels that list everything about a product.
According to recent research, the market for digital labels is growing fast. Between 2024 and 2030, electronic shelf labels (ESLs) are expected to grow by 15.8% year on year. More businesses are adopting them and shoppers are appreciating the convenience.
How They Work
Instead of paper labels, your store has tiny screens on the shelves, all linked to a central system. Change a price in the system, and—bam—it updates everywhere. No need for someone to run around with a pricing gun, peeling and sticking labels all day.
Most of these little signs use the same display tech as e-readers. That means clear numbers, low power use, and batteries that last for years. Some even let shoppers scan a code to read reviews or check stock. Here’s why retailers are shifting to this 21st-century product.
No More Price Tag Chaos
Imagine running a supermarket. You’ve got 40,000 products. Now imagine someone telling you it’s time to update every single price manually. It’s a nightmare. With ESLs, a few clicks on your centralized management system do the job in seconds.
No More “But The Tag Said…” Arguments
Everyone has seen it. A shopper grabs an item marked at $2.50, but the till says $3.00. Now there’s a hold-up. A price check. A manager involved. People in line tapping their feet. With digital tags, this nonsense stops. The number on the shelf always matches the one at checkout.
Smarter Discounts
Ever watch a worker slap bright orange discount stickers on bread at 9 PM? It’s a clumsy, time-consuming process. But digital tags can lower prices on their own. Maybe that rotisserie chicken gets cheaper after dinner hours, or fresh fruit drops in price before it spoils. All automatic. No waste. No hassle.
Less Paper, More Savings
A store might replace thousands of tags every week. That’s a lot of wasted paper and a lot of money spent printing new ones. ESLs cut those costs. They don’t get lost, they don’t tear, and they don’t need replacing every time there’s a price change.
And yes, you’re right, these aren’t as low cost as paper tags. But here’s the thing—paper tags never stop costing money. You print them, replace them, throw them away, and do it again the next day.
ESLs are different. You buy them once, and they last for years. No printing costs. No labor costs for switching prices. No mistakes that lead to lost sales. And over the years this can save you thousands.
Why Labels Matter
Labels aren’t just about ticking legal boxes. They’re about trust. People want to feel confident in what they’re buying. A well-made label can reassure, inform, and even spark curiosity.
Bad labels, on the other hand, can hurt sales. If the information is confusing or missing, shoppers might look elsewhere. But when done right, labels help products sell and leave a lasting impression.
Every time someone picks up a product, the label plays a role in their decision. It’s not just ink and paper—it’s a conversation between brands and customers, so make it count.