Private label and white label are two terms that marketers and manufacturers often use in their day-to-day activities. However, it is not uncommon for confusion between the two to arise.
Simply put, a private label is the act of marketing a good that another manufacturer originally made under a different name in a specific retailer. For example, if you own a small skincare business and want to market and sell your own aloe vera, you could contact the manufacturer of other major brands’ products and have them bottle and label your formulation with your brand’s label and logo, even customizing the formula as you wish..
However, white labeling is different in that you are simply branding a widely available standardized product that is made available for sale by many retailers. The only difference between the product on your shelf and the one in the next store over is that you have added your label to it.
Today we’ll take a quick overview of what it takes to truly comprehend these two terms.
What Is Private Label Marketing?
If you've ever been to a grocery store, chances are you have seen a variety of private label products such as laundry detergent or toothpaste. Here's an example: let's say that you have decided to create your own brand of toothpaste. Your first step would be to find an already-existing manufacturer that produces this type of product and arrange for your formulation to be made under your brand name and with your labeling.
Let’s consider another example of private label marketing: let's say there is a cake mix manufacturer that creates a line of cake mixes specifically designed for kids. If you want to use these cake mixes as the base for your kids' cake mix that you plan on selling, then having them create a version of it for your brand in particular, it would be considered private labeling.
When using this business model, you need to come up with a name and design a logo that goes along with it. From there, you must make sure that all of your packaging is consistent with your branding. This will help build brand identity and keep your products competitive in the market.
Private label products are often sold at large chain stores, and they are often cheaper than their branded counterparts. However, that doesn't mean a private label product is of poor quality.
Private label products are a growing segment, accounting for $158.8 billion US and 19.5% of the market in 2020.
What Is White Label Marketing?
As we touched on earlier, white labeling means that you are selling a product under your own label while maintaining the branding of an original product. For example, let's say that you have created a line of bottled water. You want to sell this bottled water, which you have branded in your own way. However, you know that it would be easier for consumers to purchase from you if there is already a famous brand name behind the product.
To solve this issue, white labeling means selling the same bottled water that comes from the same source as other major brands, but resold with your label and logo. .
The Bottom Line on White Label vs. Private Label Marketing
As you can see, there are subtle distinctions between private label and white labeling that are distinct in the control you have over the product itself. If you want to learn more about these differences or require assistance with any private labeling your own products, there are resources available to make your goals a reality.. The best thing you can do is figure out exactly what your goals are in terms of branding and marketing, take the time to learn about these two business models, and then decide which one will work best for you.
Let Aloe Labs Help You with Your Natural Private-Labeling Needs
Aloe Labs provide aloe vera products ranging from cosmetics to health food supplements. Our private label products provide your customers with the products they want while keeping your investment profitable. Our 100% organic aloe products are sold in bulk to keep your costs down and inventory stocked.
Aloe Labs offers aloe plants, juices, powders, concentrates, and oils. You can also select from our already packaged products. No matter how you want to sell, we have a product to fit your needs at a price you’ll love. Contact us today to learn more about how our product can skyrocket your sales.