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Why Is Product Labeling So Important?

5 min read


Last Updated on January 16, 2022 by Jonathan Lopez

The product labels show important details which customers must know.

Whenever you manufacture a product, you want to communicate the value of the product to the customers. One of the ways to do that is to use product labelling. Product labelling has become a means of communication between the brand and the consumer. Product labelling has very important information which is printed on the product packaging.

What is Product Labeling?

Product labels is the act of writing and displaying information about a product’s packaging. The product labels show important details which customers must know.

However, some confuse labeling from the packaging.

Product packaging covers the brand colors, logo, material, and shape of the package, while labeling is focused on the product’s informational or written part.

To explain further, here are the seven essential parts of a product label.

Importance of labeling a product

Brand Name

The brand name is always prominently displayed on the labels so customers can easily recognize the company. When customers become more aware and interested in your company, it creates customer loyalty, leading to more sales.

Requirement by law

As mentioned above, there are numerous labelling requirements which might be specified by a regulatory body. Some of them which are very common include Ingredients, manufacturing plant, batch number, expiry date, MRP, safety instructions etc. Thus, a company has to consider all legal requirements before deciding on the product labelling.

Packaging Size

In some areas, the packaging size is required detail that must be shown on the label. Indicating the amount lets customers know how much they’re buying is exactly, which builds trust.

Displaying the packaging size depends on the type of product. For foods and beverages, weight and volume are frequently shown. For clothing and jewelry, measuring the unit is often used.


Buy 2, get 1 free. This is a type of product labelling which you would have most likely encountered especially during festive season. If a promotion is printed on the package, it has to be adhered to. It also comes to the immediate attention of the customer.

Quite simply, a large bottle of Vinegar is promoting that you might get 33% more vinegar at the same price. Now, this is a promotion which will immediately attract the customers’ attention. Note that in retail and hypermarket, there might not be in store promoters. At such times, your product labeling can become the last mile seller for your brand. A look at the product label can convert a prospect to a customer.

Grade and type

Every Sunsilk shampoo has different types. Besides changing the design and packaging style of the product, they also change the label on the shampoo. Some of them will say that the shampoo is Anti-dandruff shampoo whereas the other will say smooth silk. Thus, product labelling can be used to differentiate between the various grades and type of the product.

If you were to buy beer, then the beer does mention whether it is strong or mild. This is the grade of beer or drinks you are buying. Similarly, even packaged food industry commonly uses various grades to differentiate their products.

Company Contact Information

Providing company contact information makes it easier for government agencies to contact the company if there’s an issue with the product. Furthermore, it gives customers a way to reach the company for feedback such as complaints or suggestions to improve the product.


A barcode represents data in a visual, machine-readable form. Major warehouses and retailers use barcodes to track their products, especially in high-volume stores.


By law, a product might not be required to print usage instructions on the package of the product. Some products use a manual to communicate the same whereas others imbibe usage instructions on the packaging itself.

If you buy Knorr soup, the package will tell you and give you specific instructions on how to make the soup. If you buy Kellogg’s corn flakes, the package will, in fact, give you specific diet instructions besides showing the normal ingredients and calorific value. Thus, in a description, we generally use instructions such as How to use, how to store etc.

Make it Readable

When designing a label, make sure the type is clearly legible through font size and color.

Use a font size that’s large enough, ideally for everyone, including people with reading glasses. The text should be sized above 6 points at the very least, and if you can, try to design the label with the important information at 10 points and up.

The font color should have enough contrast with the background too. If you can, choose a font color that has both value and intensity contrast, so bright + light and dull + dark. Bright colors are considered good choices for type because they are thought to influence a customer to buy. The color choice should really depend on the kind of product though and its existing visual brand style. To explore color options, try using Adobe Kuler or Sessions Color Guide.

SOLUM Electronic Shelf Labels

Today, there is a more efficient way of showing product details. Rather than looking at those small-lettered paper product labels—which are hard to read—there is an alternative tool that transforms how retail stores can present their products to customers.

SOLUM (ESL) Electronic shelf labels make product labeling more interactive for customers. Aside from the fact that they’re easier for customers to read, customers can flip up to 7 pages so that they can see more information about your product.

The latest line-up of ESL by SOLUM is now empowered by the all-new Newton system, which makes our digital labels capable of offering the following features:

  • Ten years of battery life
  • 8-10x faster update speed
  • Up to 7 pages of information display
  • 7 LED colors
  • Two programmable buttons
  • NFC capability
  • IP67
  • Customizable design

If you want to switch to our electronic shelf tags, our ESL experts are always available to discuss our products and services’ capabilities.

Visit SOLUM ESL today to know how our ESL solutions can cater to your business needs.

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