Looking to launch a brand where you have full ownership and control over the products you create?
That’s where private label manufacturing can be a big game-changer. While this manufacturing model is instantly appealing to startups, larger companies, including Amazon and Walmart, have turned to private label manufacturing too, recognizing how it can be leveraged in a way that leads to fast success.
Curious about whether private label manufacturing would be a good fit for your brand? Read on as FLPL talks you through the ins and outs of producing and selling private label products.
Understanding What Private Label Manufacturing Actually is
Many businesses assume that private label manufacturing is a no-go for them because it takes away some of their ownership. However, this couldn’t be further from the truth. This myth only came about because of how private labeling is often confused with white labeling. The latter sees brands purchase pre-manufactured genetic products, which they can then slap their label on and sell as their own. Although they own the products that they’ve purchased, and are now selling, they don’t have any ownership over the original product/formula. Any brand could place an order with the manufacturer and then sell that product under its own name.
Private label manufacturing, on the other hand, is very different. When you work with a private label manufacturer, you’ll be creating products that you have full ownership of. Sure, your private label manufacturer may know the secrets behind the products that they’ve produced for you but they wouldn’t be allowed to share this with other companies. Whatever you create will be completely original to your own brand. This will immediately set you apart from the companies that sell white label products.
It All Starts With an Idea
So, where do you begin if you want to adopt the private label manufacturing model?
Just like with any business, it all starts with a single idea. Chances are that you already have a few thoughts regarding the type of product you want to sell or the audience you want to target. While some private label manufacturers will require your ideas to be fully fleshed out, others, like FLPL, will help you to do just that. We can guide you on taking your ideas further, turning those dreams into obtainable goals.
After this, market research comes into play. This needs to be as thorough as possible. This way, you can ensure that the products you create fall in line with the wants/needs of your target consumers. Say, for example, you want to produce skincare products aimed at people with troublesome dry skin. In your mind, this may mean creating a line of face creams. However, after conducting market research, you may discover that more face creams aren’t what your target market wants. Instead, they may be on the hunt for specialist serums or face masks. Learning all of that at this stage will help to ensure that there is a solid demand for the products that you’re about to produce.
Product Selection
Once you’ve completed your market research, you’ll have a good idea as to the types of products that you want to create. If you haven’t already found a private label manufacturer to work with, now would be the time to do so.
There are plenty of companies out there that offer private label manufacturing. What differentiates them is their experience and specialties. Some companies will focus on manufacturing food and beverage items while others may specialize in clothing. At FLPL, our specialty is beauty. Whether you want to create a line of skincare products, hair tools, grooming items, or anything else beauty-related, we have that covered!
Once you’ve chosen a shortlist of private label manufacturers to consider, make sure that they’re actually able to produce the types of products that you have in mind. They should also be able to provide scope for expansion in the future. It’s all very well teaming up with a company that creates skincare products but you may want to expand into, say, bath and body care in the future. Ideally, you should be able to do this with the same company, rather than having to work with two private label manufacturers. Sure, the latter is possible. However, life will be much simpler if you have a single private label manufacturer that’s able to see your brand well into the future.
The Private Label Manufacturing Process
So, once you’ve decided on the products you want to sell and have found a private label manufacturer who is able to help with this, what comes next? What exactly does the private label manufacturing process involve?
Well, it usually starts with creating samples of the products that you have in mind. This is the R&D stage, and you can be as involved in the process as you wish. At FLPL, some of our clients have in-depth cosmetic knowledge. This enables them to call all the shots in the product creation process. Others don’t have quite as much experience in their chosen field and are happy for us to guide them. This is where our ingredient catalog becomes particularly useful. With this, brands can pick and choose the ingredients that they want to include in their cosmetics. We’ll then use those to put together a workable formula that meets their requirements.
Once samples have been created and approved, mass manufacturing can begin. One of the advantages of working with a private label manufacturer is that you won’t have to stress yourself out liaising with factories. Instead, with FLPL, simply decide whether you want your products to be produced in the USA or overseas. We’ll then arrange everything else for you. After your products have been manufactured, they’ll then be sent to us for storage. You can either collect them yourself in your own time or arrange for onward delivery.
Branding is Key
Of course, even if you’ve created the very best cosmetic products in the world, you’ll struggle to sell them without the right branding. This is something that gives your brand an identity and a personality. It will persuade people to pick your brand over the competition, especially if they’re able to relate to your brand in some way.
If branding isn’t your forte, some private label manufacturers, including FLPL, can help with this. We have an art and marketing team that will take care of all of your branding needs. They’ll ensure that your company portrays a clear and attractive brand image.
Of course, marketing isn’t the only way to get your brand out there. The packaging that you use for your products plays a big role in this. After all, even if a potential customer has never seen your advertising, the right packaging can often be enough to tempt them into trying a new product. You’ve probably experienced this several times yourself! Good packaging can be very persuasive.
Where does packaging come into play in private label manufacturing? Well, some private label manufacturers leave this up to the client. This means that you’ll then need to enlist the help of an additional company to have your packaging designed and created. Others, like FLPL, include packaging design in the product creation process. We strongly believe that the two go hand-in-hand together, which is why they’ll be created side by side.
Protecting Your Ownership
Let’s move back to the topic of ownership. As we mentioned earlier, the products that you create with a private label manufacturer are owned by you. However, if you’re still concerned about your ideas and processes being shared with other companies, there are a few steps that you can take to protect your ownership of your products.
The first is to make sure that you have a clear written contract with your private label manufacturing team. This will ensure that they keep all of your brand’s secrets. Sure, an unscrupulous company may still try to slyly sell your ideas on (which doesn’t happen very often!). However, you’ll then have legal backup because of the contract that both parties initially signed. This contract should ideally cover the entire manufacturing chain. Your private label manufacturer will likely work with third-party companies, such as factories. A solid contract will ensure that nobody on that chain will be allowed to give your brand’s secrets away.
Of course, if you’ve created something truly special and unique, you may want to consider a patent. This prevents competitors from copying your products, ensuring that your ideas remain yours.
The Challenges of Private Label Manufacturing
Although the private label manufacturing process tends to usually be pretty smooth sailing, there will, of course, be challenges that you’ll have to overcome.
Quality and consistency is one. You’ll need to find a private label manufacturer that prioritizes this because, as you can imagine, getting this wrong could be the downfall for your business. At FLPL, we have strict quality control measures in place. They ensure that everything that is produced for our clients is consistently high in quality.
Some brands also struggle with meeting minimum order requirements. However, with private label manufacturing, these are usually actually lower than the minimum orders you’d need to place if you were to work directly with a factory yourself. Private label manufacturers will have all of the right connections, meaning that they’ll be able to produce smaller batches of products. At FLPL, our minimum order quantity is 5000 units. This may seem high at first but when compared to the factories that require you to place an order in the tens of thousands, it’s much more achievable!
Would Private Label Manufacturing Help Your Brand to Succeed?
There’s no denying that there’s a lot to consider with private label manufacturing. However, there’s also no denying the fact that taking this route is much easier than doing everything yourself. Not only will you have an experienced team to work with to ensure that your risks are minimal and your decisions are on-point, but you also won’t have to deal with all of the hassle that comes from arranging the manufacturing of your products. You’ll instead be able to spend that time focusing on the areas of your business that you’re experienced in, which will help to propel your brand to success.
