Understanding of Private Label – Contract Manufacturing

Private labeling is an option open to most retailers – both online and offline – get their products from suppliers. There aren’t many brands that manufacture and sell their lines direct to consumers. That sales channel strategy is growing in popularity but is far from common right now. Almost every consumer product category has both branded and private label offerings.

A private label product is manufactured by a contract or third-party manufacturer and sold under a retailer’s own brand name. As the retailer, you specify everything about the product – what goes in it, how it’s packaged, what the label looks like – and pay to have it produced and delivered to your store. This is in contrast to buying products from other companies with their brand names on them.

Your Contract And Private Label Skin Care Manufacturer

Hair salons often create private label lines their own branded shampoos, conditioners, and hair styling products for their customers to buy and take home.

Private Label Range offered in Grooming & Personal Care – Body Care, Skin Care, Hair Care, Cosmetics – establishments may sell their own private label brands Shampoo – Conditioner, Face Washes, Face Pack, Body Wash, Creams, Lotions, Oral Care Toothpaste – Herbal Health Care Products – sell alongside branded alternatives.

HCP Wellness is the Best luxury & organic private label cosmetics & skin care, personal care manufacturers & wholesale companies India.

Private Label Branding Advantages

Advantages of Private Label Branding and White Labelling

Retailers interested in filling their shelves with products featuring their brand name have good reason. Some of the biggest advantages of private label products include:

Control over branding – Private label products bear the brand name and packaging design created by the retailer.
Control over production – Third-party manufacturers work at the retailer’s direction, offering complete control over product ingredients and quality.
Control over pricing – Retailers can also determine product cost and profitable pricing.
Control over profitability – Retailers can control the level of profitability its products provide.

Adaptability – Smaller retailers have the ability to move quickly to get a private label product in production in response to rising market demand for a new feature, while larger companies might not be interested in a niche product.

cosmetics contract manufacturer

While private label products are in the minority, comprising 15% of Indian Supermarket sales, some private label categories are seeing strong growth, are now being positioned as premium products, with the higher price tag to prove it.