Custom
White
&
Private
Label
Packaged Goods
White Label and Private Label are two terms that are mostly used synonymously. But in fact, there are some subtle differences between the two descriptors that relate to the sale of products that are produced by another company.
Private Label Manufacturing
The concept of private label manufacturing, also called private labeling or private label, is similar in approach to white label manufacturing. With private label manufacturing, the key difference is that the product being private labeled is sold exclusively by the private label manufacturer to a single retailer and cannot be sold to other retailers.
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White Label
VS
Private Label
While BOTH White Label and Private Label manufacturing involve a retailer or reseller engaging with a manufacturing company to create a product for saleby the retailer, there are several differences to note.
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White Label Manufacturing
White labeling or white label manufacturing is a process whereby a retailer, someone who wants to purchase a product for resale, contracts with a manufacturer of the product who agrees to sell that product to the retailer for rebranding using the retailer's unique brand and packaging designs.
Read MoreWhite Label Manufacturing
White labeling or white label manufacturing is a process whereby a retailer, someone who wants to purchase a product for resale, contracts with a manufacturer of the product who agrees to sell that product to the retailer for rebranding using the retailer's unique brand and packaging designs. Under the white label manufacturing agreement:
- The manufacturer controls the product's characteristics, components, ingredients, and manufacturing details.
- The retailer generally is accepting a generic product from the manufacture and has no say in creating unique variations to the product.
- The retailer controls the design of the packaging and branding of the product (which the manufacturer may provide as a service).
- The manufacturer is free to sell the same generic product to other retailers under those other retailers' unique brands, so there is a greater risk of competition from those other retailers when using white label manufacturing.
- The manufacturer does not own any trademarks or retain any of their branding or identity associated with white label products that they sell to retailers.
In some cases, there may be a reseller in the middle who acts to create the branded white label product by taking the generic product from the white label manufacturer and handling the packaging and labeling process to create the final branded product which is then sold to retailers for sale to end customers.
Private Label Manufacturing
The concept of private label manufacturing, also called private labeling or private label, is similar in approach to white label manufacturing. With private label manufacturing, the key difference is that the product being private labeled is sold exclusively by the private label manufacturer to a single retailer and cannot be sold to other retailers. Under the terms of a private label manufacturing agreement:
- The retailer defines the type of product they need and any changes or variations to it which differ or deviate from the manufacturer's generic product.
- The manufacturer works with the retailer to produce the desired product with those customizations to it in terms of ingredients, composition, package quantity or other specific characteristics.
- The retailer controls the design of thepackagingand branding of the product (which the manufacturer may provide as a service).
- The manufacturer controls the overall production process needed to produce the private label product, but cannot sell that identical product to other retailers, which makes the private label product more unique and therefore less likely to face competition from other retailers.
- The manufacturer does not own any trademarks or retain any of their branding or identity associated with private label products that they create and sell to retailers or resellers.
WHITE LABEL VS PRIVATE LABEL
While BOTH White Label and Private Label manufacturinginvolve a retailer or reseller engaging with a manufacturing company to create a product for saleby the retailer, there are several differences to note.The BIGGEST difference is that under white labelagreements, manufacturers sell generic products to retailers and can sell that same generic productto multiple retailers, while under private label manufacturing, the arrangement is exclusive with one retailer. The other key difference involves the degree of customization that is permissible. White label manufacturing offers virtually no control over the product details by the retailer, so in essence,they must accept the manufacturer's generic product. Private label products offer a greater degree of customizationand partnering between manufacturer and retailer to create a product that is more unique andfaces less direct competition in the marketplace.
White
Label
Private
Label
Which one is best for you?
