Private Label is a customized product created by another manufacturer, usually a third-party manufacturer, where a retailer will sell that same product under their name or brand. This is often done so a retailer can offer additional items, exclusive items, and to undercut competitor pricing.
Benefits of Private Label:
If a manufacturer has a strong product line, but it is not strong in marketing, packaging, and selling the finished product, then private label is beneficial for the manufacturer.
If a retailer has space and marketing capacity, but it does not have the ability or facility to manufacture a product, then private label is beneficial for the retailer.
This can benefit both with pricing and business strategy by letting each entity rely on their strengths by focusing budget on one aspect each instead of the entire process.
How is Private Label different than White Label?
White Label also uses a manufacturer, often a third-party manufacturer, to create products for a retailer to sell. However, white label products are not customized. White label produces large quantities of items and sells to multiple individual retailers who put their own name on the label.
Some of the most popular products with white label or private label include:
Richards Packaging has the right packaging to supply these top four products for private or white label.
