Private Label – how does it work?

Private Label – how does it work?

Private labelling is becoming more and more popular. Before I explain why you should understand what it is. Private label is when one company produce unbranded products, such as cosmetics, and then they are bought by brands that put their own brand name on the products. In most cases producing company is already packaging and labelling the products.

cosmetic bottles ready for private labelPrivate Label for young business

Many branches use private labelling on daily basis – we can see it very often in hotels or retails. But it can be also a good choice for the company that is entering the market. To start with, private labelling requires much smaller budget. When you decide to produce your own product you need to hire specialists or a company that will do it for you, and if they do it especially for you they will charge more money. What is more, in private labelling he hard work of designing the product, meeting safety restrictions and testing it is already done for you. Manufacturers offer great amount of sizes and shapes of packages so you can make your brand different.

Quality of the product

laboratory tools

While choosing the manufacturer of private label products make sure that the quality is meeting your expectations. Check if the company meets quality standards and policies. If you choose products like cosmetics or ones that contain chemicals, safety should be your no.1 priority. When you decide to use private label and introduce your own brand, you should focus mostly on marketing of your products.

hand with tool

By creating brand identification you have to attract customers to your brand and keep them with you as long as possible. One marketing “P”* – Product – is done for you but you need to focus on price, place and promotion and these are areas that you have huge control of.

 

*4P of Marketing – Product, Price, Place, Promotion

 

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