Thinking about launching your own brand? More and more entrepreneurs are now choosing to go down the private label route, and once you understand how much easier this can make things, it’s easy to see why!
With that said, if you’re new to private labeling, there’s plenty to learn before you get started. Read on as FLPL talks through what every entrepreneur needs to know before launching a private label brand.
Understand Exactly What Private Labeling Entails
If you’re thinking of launching a private label brand, you need to first make sure that you understand exactly what private labeling is. This may seem like a no-brainer, but you’d be surprised by how easy it is to confuse private labeling with other manufacturing models, such as white labeling.
Private labeling is when you team up with a private label manufacturer, like FLPL, to produce the products that you want to create. Unlike white labeling, which is where you buy generic goods from a manufacturer, slap your label on them, and then sell them as your own, private labeling involves creating those products from scratch. They’re completely customized, and you’ll have a big say in the design process. Once your samples are ready and have been approved, your private label manufacturer will then handle the mass production aspect, so that all you’ll need to do is wait for your finished products to be delivered to you.
Private Labeling Offers Several Distinct Benefits
There are so many different benefits that come from private labeling your products, which is exactly why this manufacturing model has become so popular in recent years. Let’s take a closer look at some of the main perks you’ll experience:
Access to Expertise You Don’t Have
First and foremost, unless you already have plenty of manufacturing experience, manufacturing your own goods from scratch can be a huge challenge. There’s so much to know, and even a small mistake could prove to be your brand’s downfall.
However, create a private label brand, and you’ll have access to plenty of manufacturing expertise. After all, this is what your private label manufacturer specializes in – even if you’ve never manufactured anything in your life, you’ll be able to lean on your private label manufacturer to take care of all of the complex, technical stuff for you. This not only means that you’ll be less likely to make mistakes, but it also allows you to focus on your strengths while your private label manufacturer focuses on theirs.
Flexibility in Fast-Moving Markets
It’s very common for a brand to work on developing a new line of products, only for those products to then become obsolete in the market by the time launch day rolls around. Many industries are so fast-moving that keeping up with the latest trends can be difficult, especially if your manufacturing cycle takes a while.
With private labeling, that turnaround time tends to be much shorter. This gives private label brands a sense of flexibility that traditional brands don’t have. They’re able to adapt to a fluctuating market much more effectively. This then means that they have a competitive advantage over the larger brands in the market.
Opportunities for Fast Growth
In the same way that private label manufacturing provides flexibility, it also allows for rapid growth. Usually, if you want to grow your brand and expand your product line, you need to start from scratch when it comes to product development.
With private label manufacturing, however, you can simply tell your private label manufacturer the types of products you want to create, and then dive into the details together. Your private label manufacturer will already have all of the necessary factory connections in place to ensure that your products are produced quickly. You won’t have to risk your private label brand going stagnant as you wait for new stock to arrive. Instead, you’ll be able to enjoy limitless growth!
Cost Savings
Is it cheaper to launch a private label brand compared to a traditional brand? In many ways, yes. However, this does, of course, depend on what your private label manufacturer charges you!
When it comes down to it, private label manufacturing means that your initial costs will usually be much lower. You won’t have to keep forking out for R&D, new samples, factory visits, and more. This will all be taken care of in the fee you pay your private label manufacturer. Plus, as we mentioned earlier, the fact that you’ll have access to so much manufacturing knowledge means that you’ll make fewer mistakes. Again, this will save you money in the long run!
The Private Label Manufacturer You Choose Can Make or Break Your Business
Something else that you need to know if you’re thinking of launching a private label brand is that your choice of private label manufacturer is crucial. It could make or break your entire business, so make sure that you get this right. How? Here are some tips:
Prioritize Experience and Reputation
While there are plenty of private label manufacturers out there, most will have individual specialties. At FLPL, for example, we specialize in beauty and wellness products. Whether you want to create a line of skincare products, hair styling tools, aromatherapy goods, or anything else related to the industry, we would be much better equipped to help you with this than, say, a private label manufacturer that focuses on F&B.
With that said, once you’ve found a private label manufacturer with experience in your niche, make sure that you do some digging into their reputation as well. Check out the various brands they’ve worked with in the past to make sure that they have high standards and really know what they’re doing.
Make Sure You’re on the Same Page
It’s not just the niche that’s important when choosing a private label manufacturer. You also need to ensure that you and your private label manufacturer are on the same page in other aspects too.
Take sustainability as an example. If this is something that you want your private label brand to prioritize, you need to make sure that your private label manufacturer feels the same way. If they tend to gravitate toward the cheapest of the cheap with no thought whatsoever to the environmental impact that their manufacturing methods have, you’ll want to steer clear.
Take Note of Additional Services
While assisting with the manufacturing of your products is the main role of a private label manufacturer, some offer additional services as well. If you’re new to the world of business and are lacking experience, these extra services could prove to be very useful to your private label brand.
At FLPL, we do a lot more than just manufacturing. We have teams that work with clients on everything from branding to marketing. We can even help you to set up and manage an e-commerce store for your private label brand, while also promoting this for you so that you really rake in the sales!
Keep International Regulations in Mind
Different countries have different rules and regulations when it comes to products that are allowed to be sold to the public. If you’re hoping to sell your products internationally, then this is something that your private label manufacturer needs to be aware of.
Where your products are going to be sold will impact everything from the ingredients that can be used to the labels on your packaging. If your private label manufacturer is only able to produce goods suitable for a domestic market, you’ll need to find one that’s happy to adhere to international standards.
The Other Aspects of Launching Your Brand Will Still Fall on Your Shoulders
We’ve already discussed how you’ll be in full control of designing and creating the products that your private label manufacturer produces for you. However, don’t forget that all of the other aspects of launching a brand will fall on your shoulders too:
Marketing and Branding
While some private label manufacturers, like FLPL, will help with marketing and branding, not all of them do. Even if you team up with one that does, the ultimate responsibility for this is still down to you. Marketing and branding have a significant influence on sales, making it important to get this right.
Pricing Strategies
How you price your products will, again, greatly influence how well they sell. There are so many different pricing strategies out there to explore, and this is something that you’ll need to spend a large amount of time considering. Once you’ve taken your production costs into account, pick and choose a few pricing strategies to implement so that you can see which works best for your private label brand. Be prepared for some trial and error!
Sales Channels
As we mentioned above, FLPL helps with creating and running e-commerce sites for our clients. This, combined with clever marketing, is sometimes all that a brand needs to start making sales. However, in many cases, brands choose to use additional sales channels too. From selling to retailers to selling via social media, you’ll need to do the necessary research to figure out the best ways to reach your target audience before putting that knowledge into practice.
Ready to Get Started With Your New Private Label Brand?
There’s so much to consider when launching a private label brand – the above information only touches on some of it! When it comes down to it, the more experienced your private label manufacturer is, the better your brand will likely fare.
Want to know more about how FLPL could help you take your new private label brand to the heights of success? Click here to get in touch with us today!
