It is a widely used product in various sizes using different raw materials such as Taffeta, Damask, or Satin labels with iron-on backing. Woven label with adhesive backing would last longer. Some customers tend to stitch to assure longevity.
A lot of fashion brands provide a soft touch tag free label on the inside of a garment whereas, some use it on the outside of a garment and take its advantage as it provides a walking advertising board for the brand.