Discover the benefits of private label!

Private label – what is it?

The simplest definition of private label is as follows: it is a business model in which a company sells products made by an external manufacturer under its own brand. This strategy makes it possible to sell finished products with one’s own logo without the need for extensive production facilities. Private label is not only a way to expand the product range and build a unique brand image, but also a strategy to respond quickly to consumer needs and minimise costs.

How are cosmetics produced according to these standards? PCC Consumer Products Kosmet is an excellent example of a private label manufacturer ensuring that the items sold by leading discounters under their own brand are attractively priced and of high quality. The company provides a wide range of services, from the development of a cosmetic formula according to guidelines to the production of appropriate packaging. This is because private label is a whole process that starts with your idea and ends with consumers satisfied with the choice of your products.

Which industries can benefit from private label?

Private label is gaining popularity in many areas of the economy. This is because consumers are in favour of private labels and their products are sold in both retail chains and small outlets. In which industries is this model used most often?

Food industry

Private label is popular with food manufacturers and suppliers. Retail chains, including discounters, are constantly expanding their offer with more private label products. The most popular examples are sweets, drinks and dairy products sold by supermarkets at competitive prices. This makes them popular with customers and their popularity continues to grow.

Household and utility chemicals

The use of private label in the chemical industry is very extensive. Drugstores sell thousands of products under their own brand, such as cleaning fluids and detergents which, as in the case of the food industry, provide a cheaper alternative for consumers. Companies that offer cleaning agents and preservatives pursue a similar business model.

Read more about contract manufacturing in household chemicals.

Cosmetics industry

Since you already know what private label is, it probably won’t surprise you to learn that it is used by many cosmetics manufacturers. Drugstore owners market private label items, such as cosmetics and personal care products, make-up, make-up removal and skincare products. By using private label, companies can provide customers with high-quality products at low prices, thereby increasing their market share.

Medicine and pharmacy

Private label extends to natural cosmetics, food, but also to medicines and supplements. In pharmacies, you will find private label products such as over-the-counter medicines, vitamins and medical instruments.

Clothing industry

Private label is also used in the clothing industry. Retailers offering private label shoes and clothing become attractive to customers due to their competitive prices. When used in this sector, private label also offers the freedom to create original fashion collections.

Private label and cosmetics production

When implemented in the cosmetics industry, private label allows companies to create unique lines of care products under their own brand. In this way, drugstores market high-quality cosmetics that compete with established brands because they are available at attractive prices.

The idea of private label cosmetics is based on producing items on behalf of a specific brand, which is not the direct manufacturer. By outsourcing production to other companies, entrepreneurs can focus on marketing, sales and building customer relationships. Private label is therefore in many ways akin to what contract manufacturing of cosmetics offers us.

Private label cosmetics also make it possible to adapt formulations, packaging and pricing strategies to specific market needs and consumer expectations. This allows companies to respond quickly to changing trends and preferences by introducing innovative products that respond to current consumer needs.

Why use private label?

There are many benefits to using private label, especially for companies that want to develop their product range without incurring the high costs associated with in-house production.

• Firstly, private label allows for the fast launch of new products, which is crucial in highly dynamic industries such as cosmetics. By working with experienced manufacturers, companies can benefit from their knowledge, technology and resources, which translates into high quality products.
• Secondly, private label gives companies control over the brand and its image. The ability to personalise products, packaging, and labels allows them to create a unique cosmetics line that stands out from the competition and addresses the needs of the target customer group.
• Private label allows the offer to be flexibly adapted to changing consumer preferences, which increases the chances of market success.
• Another advantage is the saving of time and resources. Outsourcing the production of cosmetics to an external company allows you to focus on other aspects of your business, such as marketing, sales or developing customer relationships. This reduces the risks associated with investment in production infrastructure and the associated operating costs.

Consider using private label to stand out on the market!