Private Label 101: Skincare Packaging

Planning to start a skincare business? There’s definitely a lot that you have to consider—from coming up with a brand name to building an effective marketing strategy. The path to becoming a beauty mogul isn’t easy, but there are plenty of ways to streamline your production, distribution, and decision-making process.

Private labeling, for instance, is a faster way to gain immediate exposure to a huge market and generate positive returns on your investment. Private label products are, essentially, products that are made by one company but branded by another. According to a report from the Private Label Manufacturers Association, private label products account for 25% of unit sales in the United States.

Why Private Label

Here are some of the top reasons why businesses choose private labeling:

  • Greater Control: You can quickly direct the manufacturer to adjust product price, size, packaging design, and other specs depending on your customers’ preferences.
  • Cost Savings: Although you can easily brand what you’re offering as premium products, private label products are generally cheaper to produce and sell.
  • Higher Profits: Private label products have a smaller supply chain compared to national-level brands. Most of the profit margin after subtracting manufacturing costs goes directly to you.
  • Monopoly: Your branded products will only be available at your store—you don’t have to worry about competitors selling the same products and undercutting your profits.

Private Label Packaging

How you package your product can mean the difference between success and failure. The packaging is the first thing that a potential customer sees, so make sure it’s done well.

Below are some best practices to help you differentiate your skincare products:

  • Be Creative: Don’t be afraid to innovate and think outside the box. Come up with different packaging materials, finishes, or styles to present a completely new aesthetic to your target audience.
  • Be Unique: One of the disadvantages of private labels is that you might end up selling a similar product to others in the market. The best way to differentiate your line is through custom packaging. Opt for designs that are different from what’s already out there.
  • Tell a Story: Use your packaging to tell your brand story and allow your customers to intimately connect with your business. For example, you can include a QR code in your packaging to lead customers to your website.

How to Sell Private Label Products 

Here are the steps you need to follow to start a private label skincare brand from idea to launch:

#1 Research

Just like starting any other business, you need to research and equip yourself with the right information to reach the other side. Make sure you understand what you’re getting into, and be prepared for any emergencies.

Some of the questions you should ask yourself at this stage are the following:

  • Which skin care products are viable for private labeling? 
  • How much will you spend on manufacturing, branding, and marketing?
  • Do you have enough capital to cushion any unexpected costs or fees?
  • Who is your target customer?
  • Who are your competitors? Are there any areas they’re lacking in that you can use as a springboard for your brand?

#2 Find the Right Private Label Manufacturer

Always work with a reliable and experienced supplier. Vet your options carefully, and make sure that they can grow with your brand. Make sure to take the following considerations into account:

  • Capabilities: Can they keep up with the quantity you’ve set? Can they produce other products if you decide to expand in the future?
  • Costs: How much will their services cost you? 
  • Product Quality: Do the products pass industry standards? Are the products safe? Are you sacrificing quality for convenience or price? 

#3 Build the Brand

After you’ve decided on the product and manufacturer, it’s time to consider your branding. Here are the key aspects to keep in mind:

  • What differentiating factor will set you apart from your competitors?
  • Is your chosen brand name available as a website domain and a registered business name?
  • What kind of brand experience do you want your customers to have?

Ready to Start Your Own Private Label Skincare Brand?

If you’re interested in the idea of launching private label skincare products, Aloe Labs is here to help. We have years of experience producing organic aloe vera products that adhere to strict quality standards. Aloe Laboratories will work with you to turn your dream project into a reality. Contact us now to get started.

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