Whether you’re a start-up or an established business looking to diversify into skincare, you’re likely to have come across the term ‘Private Label’ already. But what exactly does it mean? And how could it benefit your brand?
In this blog, we’ll take a look in more detail about what private label means. We’ll also explain how to get started with your own beauty line through choosing a streamlined process that can provide fantastic results for your growing business.
What does private label mean?
We know that starting and running a business is hard work. It can take every ounce of your passion, dedication, enthusiasm and knowledge to achieve a successful venture. From your initial concept, through to branding, manufacturing, managing stock and fulfilling orders - it’s a never-ending to-do list!
So, how can you simplify systems to enable you to focus time on growing your business instead? That’s where a private label manufacturer comes in.
If you’re considering selling beauty products or diversifying from your already established line, choosing private labelling can be a great option. Basically, it means outsourcing the creation of your products to a supplier that’s already set-up and ready to manufacture them - without you having to gain any specialist knowledge, equipment, or source your own ingredients either.
In short, you partner with an established and trusted manufacturer who’s already formulated effective beauty solutions and carried out rigorous safety testing. Once you’ve chosen your manufacturer, you simply select an existing and proven high-quality formula and then apply your own brand details to the packaging.
As with private labelling, the term ‘White Label’ covers retail-ready products, but usually with no customisation. Instead, the only adaptations that can be made are to exterior packaging to rebrand as your product.
By selling existing formulations under your own brand name, you can quickly and easily enter the lucrative beauty market. Having access to high quality products makes the whole process fuss-free.
What are the steps to launching your product?
Private labelling might sound appealing, but exactly what steps do you need to take to launch your product to market?
Firstly, identify your niche and work out if there are any gaps in the market where consumer needs aren’t being fully met. While you’re researching, look at current trends and see what potential competitors are doing too. At this stage, it’s definitely worth thinking about how your audience would find out about and purchase your product.
Then it’s time to find a reliable manufacturer. They will be a key partner in meeting and exceeding your customers’ needs - so look for a company with proven successes, evidence of client testimonials, and experience of working within the sector. Check the quality of their ingredients and see if they can recommend best selling products while evidencing safety, sustainability and other ethical credentials.
Here at IRIS, we believe it’s important to find the right fit for your business. Discover more about who we are and what we stand for here.
Your manufacturer will have the skincare and body care products sorted, but a big part of the process also includes developing your own brand identity. It’s important to formulate a unique and distinctive logo that resonates with your target audience and that can be used consistently across all customer-facing communication. Consider selling through online marketplaces, your own ecommerce site, or retail partnerships. Utilise digital marketing tools like social media and email campaigns to reach your target audience.
Remember to closely monitor the performance of your products. Be prepared to make adjustments based on this feedback, so you can continually adapt, evolve and improve your brand according to market conditions.
Why should start-ups consider using private label?
Ultimately private labelling offers a great way for start-up businesses to enter the market with lower risk and higher potential rewards, because there’s no need to spend time or money developing products from scratch. The key benefits include:
- Shorter time to launch - Private label products can be ready for sale faster because there's no further developing or testing phases required.
- Cost-effective - Private labelling enables you to reduce the investment required for research and development, manufacturing, and testing.
- Higher profit - Since you’re not investing heavily in product development, your profit margins can be higher.
- Brand control - Private labelling gives you complete control over the brand identity of your products. With IRIS, you can design your labels quickly and easily online.
- Market testing - With reduced start-up costs, you can test the market by launching lower numbers of products before committing to larger orders.
- Scalability - As your business grows, you can expand your product line or enter new markets easily.
- Flexibility - Private-label sellers can pivot their products quickly - responding to reviews, feedback and sales figures
We know private label is a great option for start-ups, but it’s also a fantastic choice for already-established businesses looking to diversify into new retail areas too. For example, you may run a successful gym, salon, spa, hospitality or fragrance business and want to expand your brand into skincare. Private label is a great way to test the water and diversify your income stream, without having to invest in new processes, ingredients or equipment.
Whether you’re looking to create a new product line or simply want to expand your existing offerings, private labelling could be the perfect solution for your business. By tapping into the expertise of an experienced beauty manufacturer, you can create a successful business that meets the needs of your customers.
Interested? Take a look at the selection of premium skincare, body, and beauty products that we offer in our retail-ready range.