Advantages and Disadvantages of Private Labelling

02 March 22

Advantages and Disadvantages of Private Labelling

Whether you are a clothing manufacturer or retailer, being aware of the advantages and disadvantages of private labeling can help you stay up in the game! If you are not aware of the concept yet, here's a detailed article to help you! Let's look at what exactly is private labelling and everything you need to learn about it! 

 

What is Private Labelling?

 

When a retailer purchases a product from a clothing manufacturer and sells it under his brand name, it is precisely called private labeling. Private labeling entails the retailer with complete authority on the product, starting from specification and packaging. Private labeling lets a company sell the product from another clothing manufacturer under their label. The product falls under the brand or company by all means.

 

You can think of selling your products in three different ways:

 

  • You can design, develop, test, and manufacture unique branded items to sell to your customers.
  • You could invest in finished and branded products and resell them to your customers.
  • You can find a private label manufacturer and order unbranded products ready for sale and customized with your branding, logo, and packaging needs.

 

Among the three, choosing a private label manufacturer is a better option as it is cost-effective and less time-consuming. You can get ready-to-sell products with your brand logo and label when the private label manufacturer does it for you.

 

Here's how private labeling works:

 

The following examples would help you have a better understanding of the private labeling process:

 

  • You have a clothing brand, and you want to start selling clothing materials.
  • You don't have a manufacturing team that can help develop a range of branded products.
  • You have searched online to find a private label manufacturer in the UK ready to ship unbranded products.
  • After contacting the manufacturer, submit your brand logo and guidelines and orders in various sizes and colors you like.
  • The manufacturer will apply your logo and brand tagline and any additional branding guidelines provided, such as colors, fonts, and graphics. They also follow your packaging requirements and ship your products to you directly.
  • Now you will be ready to sell your branded products. How much you choose to sell your products is entirely up to you!

 

Like every coin has two sides, private labeling does possess some advantages and disadvantages. If you decide to choose a private labeling service, going through a few of them would help you make an informed decision.

 

Advantages of Private Labeling:

 

  • Adaptability: Clothing manufacturers and retailers should be able to adapt to the swift changes in the market quickly. When the retailer chooses private labeling with a wholesale clothing manufacturer, it helps them act faster according to the changes in customer behavior. With a quick online video call, they can instruct a manufacturer to optimize the product accordingly.

 

  • Do not require any manufacturing experience: Since the factory takes full responsibility for the manufacturing process from start to finish, you do not need any prior manufacturing experience to get started. In addition, the factory often has suppliers with whom it has established a long-term working relationship so that production can be done much cheaper than ever.

 

  • Product control: Not only when quick customization is required, but retailers also have greater power. Another benefit of private labeling is that there is more control over overproduction. You can insist on precise specifications, down to things as basic as a product's color or shape.

 

  • Product customization: A key benefit of business labeling is that you can easily customize the product you want. Contact your manufacturer and create bespoke products for your business, from color changes to different types of materials.

 

  • Controlled marketing: With private labeling, retailers are responsible for the entire supply chain. You set and control production costs to ensure the most profitable prices. Products are manufactured in a way that provides the healthiest final margins.

 

  • Control over the brand: The problem with selling branded products is that consumers do not love your business. They develop loyalty to the manufacturers of their favorite items, not to the retailers. Private label products and their packaging have their name and brand.

 

Possible Disadvantages of Private Labelling:

 

While private labeling offers quite many benefits, retailers need to consider a few facts that might affect their business adversely. They cannot be a matter of concern if you stay aware. Let's have a look at the possible downsides of private labeling:

 

  • Do not support minimum order quantity: As a wholesale clothing manufacturer, companies find taking up minimum quantity orders private labeling products challenging. While this may not be a problem for medium and large businesses, startups and small independent businesses may have difficulty meeting a high minimum order requirement.

 

  • Building brand loyalty could be problematic: Small businesses need to put a lot of effort when building brand loyalty among potential customers. Bulk private labeling may affect it when they have to compete with the giants in the market.

 

Find Private label clothing manufacturers.

 

If you want to take advantage of private label products, the next step is to find an authentic private label manufacturer. You can do it in four simple steps.

 

  • Find a successful private label product idea that is still in demand.
  • Connect with a private label manufacturer.
  • Build a strong brand.
  • Start selling affordable branded items.

 

Felipe Tadd private label products are made by reliable suppliers in the industry. These products are then labeled to reflect the brand identity. Production costs, including material, are borne by the supplier. In the end, you will get a completely prepared product that is branded and ready for sale. So, hurry up and choose your private label clothing manufacturer soon.