When you’re in the ideation phases of developing a new product or product line, there are many decisions to be made before getting started. Trusted custom contract manufacturers, such as Allure Labs, will offer you a choice of manufacturing options to give you an accessible entry point into the market using the right approach for your brand. Two of the most popular options are white label and private label.
Both white label and private label manufacturing options feature a set of advantages for businesses with different sales and marketing objectives. Custom manufacturing can take months, sometimes even years to develop product concepts, perfect formulations, finalize packaging, and go through production before products can be distributed. White labeling is a fast-track alternative for brands looking to launch quickly and efficiently, but also permits less flexibility in formulation design. In order to decipher which is the best fit for your brand, you should first gain a better understanding of the key distinctions between the two.
What is white labeling?
Well-established skincare and cosmetic manufacturers will have a bank of generic, pre-existing formulations for products that can be sold to various different companies, who then market and sell these products under their own brand name with minimal modification or customization.
Benefits of White Label Manufacturing:
- Speed to market: White labeling enables you to bring products to market swiftly by leveraging your manufacturer’s existing production capabilities. By eliminating the need for extensive product development, you can save valuable time and resources. Despite the limited customization opportunities of white labeling, reputable manufacturers like Allure will have a thorough repertoire for you to choose from.
- Cost-effectiveness: The price point of white label products is lower compared to custom manufacturing, as it bypasses the discovery and formulation stages of the product development process. In turn, you benefit from reduced production costs, naturally resulting in increased profit margins.
- Focus on branding and marketing: With white label manufacturing, you can concentrate your efforts on branding, marketing, and identifying strategic distribution channels rather than investing heavily in product development. This approach allows you to enter the market faster and sharpen your focus on building brand recognition.
Considerations for White Label Manufacturing:
- Limited customization: White label products have limited customization options since they are based on pre-existing formulations and designs. Before choosing to white label your product(s), we recommend you meticulously assess whether these limitations align with your brand’s requirements and target audience preferences.
- Brand differentiation: While white label products offer speed and cost advantages, they may lack unique differentiating features that contribute to the overall user experience. White labeling requires you to invest more time and resources into developing branding and marketing strategies that create a distinctive identity for your brand and set your product(s) apart from competitors offering similar products.
What is private labeling?
With private label manufacturing, you collaborate with your manufacturer to create custom products tailored to your brand’s specific needs. In this arrangement, the manufacturer works closely with you to develop products from scratch, which affords you more decision-making power over formulations, design, packaging, and branding.
Benefits of Private Label Manufacturing:
- Customize your products: Private label manufacturing gives you the opportunity to create unique and differentiated products from what’s already on the market. You work with your manufacturer to develop formulations, packaging, and designs that align with your brand’s identity and meet the specific demands of your target market.
- Brand ownership and control: With private label manufacturing, you have complete ownership and control over your products since they were uniquely designed for your brand. The manufacturer tailors product features, quality, and price points to align with your brand strategy and position you advantageously according to your competitors.
- Establish a long-term partnership: Collaborating on private label products establishes a long-term relationship between you and your manufacturer. The fruits of this working relationship breed loyalty and enhanced trust, better communication, and the ability to fine-tune and improve your product offerings over time.
As a leader in skincare manufacturing, Allure takes pride in the longstanding partnerships we have built with our private label clients over the last three decades. The strength and longevity of these relationships are what have allowed us to perfect the delivery of clients’ product development needs and dominate the cosmetic and personal care manufacturing field with the caliber of our formulations, innovative treatments, and new methodologies in skincare.
Considerations for Private Label Manufacturing:
- Cost and lead times: Private labeling typically requires more time and financial investment compared to white label options. Developing a customized product from scratch involves formulation development, product testing, and packaging design, all of which increase upfront costs and extend the time it takes to get your product to market.
- Supply chain management: With private labeling, you want to ensure efficient supply chain management in order to maintain consistent production. Taking the time to find and vet suppliers is a tall task. However, when you work with Allure, you can confidently delegate this feat to us, knowing we have built generative partnerships with some of the most trusted raw material vendors in the industry over the thirty years we have been in operation. Not only do we connect you with respected and reliable suppliers, but we also monitor your inventory levels, production schedules, and quality control processes to avoid any potential disruptions.
Unlike other custom contract manufacturers, Allure also offers a third option we refer to as “reverse engineering” which references an existing product on the market as a starting point and tweaks your custom formulation from there.
When choosing between white label and private label options in product manufacturing, you first need to evaluate your priorities, business objectives, target market, and available resources. White label manufacturing offers speed, cost-effectiveness, and ease of market entry, making it an attractive option if you’re looking for a quick product launch with minimal customization. On the other hand, private label manufacturing provides greater control, customization, and the opportunity to build a unique brand identity. However, it requires more time, investment, and supply chain management.
Ultimately, the choice between white label and private label depends on your brand’s specific needs and goals. Some companies opt for white label to swiftly enter the market and focus on branding and marketing, while others may prioritize the differentiation and brand ownership private labeling offers. Allure serves a range of clientele from physicians and dermatologists to beauty influencers, mass-market brands, and international wholesalers. Regardless of your brand’s position, we operate under one core philosophy that guides all of our work: provide our clients with the finest quality formulations in the quickest possible turnaround times. All product development and manufacturing takes place at our 65,000 sq. ft. state-of-the-art facility in northern California, where our teams use the latest techniques and cosmetic chemical engineering processes to create your products.
Whichever option you choose, it is essential that you establish a strong partnership with your product manufacturer. Working with an established, reputable manufacturer like Allure assures open communication, quality control, and a shared commitment to product excellence. By making an informed decision and leveraging the right manufacturing approach, you can position your brand for success in the competitive landscape of the beauty industry.
Working with Allure, you can count on certified products delivered in a timely manner and at a price that works for you, made with premium-grade ingredients and packaging that reflects your brand. Visit our website to learn more about our manufacturing capabilities or contact us today to get started.
This article is authored and approved by Sam Dhatt.