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What is a Private Label, and why do we make use of this?

From time to time, you hear many industry expressions, some abbreviated, some just acronyms and you nod, accepting the term, not understanding what it means. In this blog, we will describe the term 'Private Label' in our business, discuss some examples, and highlight the advantages of this sort of business model.

What is a Private Label product?

A Private Label product is a product produced by a company that another retailer sells under their name. This means that the private label product leaves the factory under the company's name that we are working with. The practice is far from a foreign concept to many retailers. Many consumers are unaware of its prevalence, but it's a standard method in today's shopping scene. It is an excellent plan for a brand to put their products in people's hands. For the company to sell these products, private labelling enables them to market products they have no way of producing themselves with their unique brand. If a company has no prior experience creating its product, private labelling is a great way to start. Users of cosmetics are more willing to buy a product through more prominent manufacturers than through a business with no previous sales. Still, your product must be able to sell itself without specific promotions or brand promotion.

Advantages of Private Labelling

There are some huge advantages allied with Private Labelling. First of all, it saves you an enormous deal of time and money. Creating a product from scratch sounds initially like a great idea. Still, unless you've done it before, you probably aren't aware of all the energy and resources that go into creating an original product. The brands which use private labelling generally have a more significant profit margin than resale cosmetics. The reason for this is that the price for buying premade products is frequently higher than making your product, especially if the development and marketing of the products are of high quality. Our article about how our products are developed and being made can read how the entire process goes. Besides this, a company like us has a lot of expertise in producing cosmetic products. We have gone through the stages several times; we know the ingredients processed in the products and know how to deliver a quality product. Last, of all, Private Labelling makes you unique from competitors. Only the seller of the product itself has the right to sell the product. Excellent marketing will generate a demand for it, which profits the retailer because it is the only product source.

What we can offer

Researching, measuring, mixing, we all do it ourselves, independently. We are ambitious enough to do business with large corporations. We love supplying for an international chain of supermarkets just as much as a small-time entrepreneur with big dreams and a concrete plan. We are a young company and therefore flexible. However, this doesn't mean we are fast and cheap. We are in it for the long run, with no cutbacks on quality. Trust and complete transparency are the most fundamental ingredients to a successful collaboration. We guarantee you your idea is in good hands with us. The people who create your product also know how to operate the machines; we like short communication lines. We understand the trends just as we keep up with scientific developments. And, of course, we know the rules and regulations of the law. Great idea for a cosmetic product? Let's get in touch.

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