What are private label cosmetics?
If you’re looking to start your own cosmetics brand or beauty brand in general, you’ll likely need a private label cosmetics or white label manufacturer to guide you through the process. These terms are sometimes used interchangeably, however they offer two very different approaches to manufacturing and product creation.
To help you choose which is the right option for your cosmetics brand, we outline the differences between private label and white label cosmetics and offer some tips on which is the best option for you and your business goals.
What are private label cosmetics?
Private label cosmetics are unique formulations which are developed and tested by a private label manufacturer specifically for your brand.
With private label cosmetic products, you have full involvement throughout the entire manufacturing process. The first step is to create a brief that includes guidelines for your cosmetics formulation, such as which ingredients you’d like to use, the texture, scent, colours, and other details.
Private label manufacturer or a formulating laboratory then develops a unique formulation based on your brief. When you approve the formulation, the manufacturer will then test the formulation before producing it in bulk and filling into individual packaging.
Advantages of private label cosmetics
The benefits of using a private label manufacturer include:
- Having full input over the formulations, including colour, texture, scent, and ingredients used
- Being able to label and package cosmetics with your own unique branding
- Having a completely unique product line designed specifically for your brand
- In most cases, you have full ownership of the final product/formulation
- Having access to experts who can develop, test, and manufacture formulations on your behalf
- Being able to change formulations when necessary according to customer preferences and feedback
- You can request samples to try the product while it is still in development and provide feedback
Cons of private label cosmetics
There are some disadvantages to using private label products which may make it unsuitable for some cosmetics businesses. These include:
- It can take anywhere from 12 to 48 weeks for your formulation to be developed, tested, and manufactured, the average being 16-22 weeks
- Depending on the complexity of formula, ingredients, or packaging, there are minimum order quantities that you have to meet (ranging between 1.000 to 10.000 units per formula)
- Private label manufacturing may require a larger upfront investment
Who is private labelling best for?
Private label cosmetics are the best option if you:
- Have an idea for a cosmetics product line but don’t have the resources to develop and test products yourself
- Want full input on the product’s ingredients, texture, scent, and colour
- Want to launch completely unique products to market
What are white label cosmetics?
White label cosmetic products are those which have already been formulated by a manufacturer and sold to multiple brands who can label them with their own packaging.
When you use white label products, you’re essentially choosing a product from a range of ready-made formulations. You don’t have a choice over the ingredients, texture, colour, or scent, and you can’t change the formulation in most cases. Sometimes hybrid option is possible when you can change the fragrance of the product.
Once you have chosen a white label formulation, you are free to design your own product labels and sell them under your own brand name. Unlike private label cosmetics, however, you don’t have ownership of the formulation itself. This means that a competitor can sell the exact same products under different branding.
Advantages of white label cosmetics
The benefits of using a white label cosmetics manufacturer include:
- You can start selling products quickly as formulations have already been developed and tested and you can have your product ready in 10-12 weeks
- Requires less upfront investment
- You can still customise how the product looks and brand it as your own
Cons of white label cosmetics
Some of the disadvantages of having a white label cosmetics business include:
- You don’t have ownership of the formulation
- Your product line won’t be unique - there may be many brands selling the exact same product
- You can’t change the formulation or choose what it looks or feels like
- Customers can feel betrayed if they find out your product is not unique so you have to align this kind of product launch with your brand values and buyer personas
Who is white labelling best for?
White label cosmetics manufacturing is the best option for:
- Small businesses who want to launch a product line quickly
- Brands that don’t mind having a product line that is not unique
- Businesses that don’t plan to sell to retailers in the future
Private label vs white label cosmetics: key differences
There are some similarities between private label and white label cosmetics, namely that you are free to sell products under your own brand name. For many new cosmetics companies, this is the primary concern. However, when choosing which is better for you, it’s important to note the key differences between the two:
- Private label manufacturing offers you full control over the product’s formulation, including ingredients, texture, colour, and scent. White label does not.
- White label can be quicker and cheaper as the product has already been designed, tested, and manufactured. With private label, you must dedicate time and money to developing, testing, and manufacturing the formulation.
- Private label products are completely unique to your brand and can embody your brand values (e.g. natural ingredients, cruelty-free, vegan formula). White label means you can have your own brand packaging but the product itself may not embody your brand values.
- In most cases, you have full ownership of the formulation with private label. With white label, you don’t have ownership over the product. This can be difficult when attempting to scale your business or have it sold at retailers.
Which is better for you?
In the end, the choice of whether private label or white label is better depends on the vision you have for your cosmetics brand.
If your main goal is to quickly release products to market, with the least upfront investment, then white labelling may be the best option for you. You can easily choose from hundreds of ready-made white label cosmetics products and find a supplier that matches your needs. You can then order the amount of products you’re after and label them with your own branding.
If you’re looking to create a completely unique brand with goals for a long-lasting future, then the best option is to partner with a private label manufacturer. You can then take the time to develop the exact products you envision for your brand and release a cosmetics line that you can be proud of. This is the best option for brands who are looking to create high-quality cosmetics products that have lasting value for customers.
What are private label cosmetics?
- You don’t have ownership of the formulation
- Your product line won’t be unique – there may be many brands selling the exact same product
- You can’t change the formulation or choose what it looks or feels like
- Customers can feel betrayed if they find out your product is not unique so you have to align this kind of product launch with your brand values and buyer personas
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