Running your own cosmetics line is exciting, but it also comes with various new responsibilities and tasks you’ll need to conquer. For example, you’ll need to develop a brand identity and narrow down your target market—and that’s just the beginning!
One of the most important things you’ll do when launching a new beauty product line is decide how you’ll source your products. Are you manufacturing your products yourself? If you’d prefer to work with a manufacturer, you need to determine if you’ll use white labeling or a private label. This post will explore the difference between white label and private label, plus the advantages of buying white label cosmetics.
White Labeling vs. Private Labeling
New entrepreneurs may use the terms “white labeling” and “private labeling” interchangeably, assuming they refer to the same thing. This is a common misconception; the two are different, and understanding these two label types will help you develop your business model.
What Is White Labeling?
In white labeling, a manufacturer will create a product with no logo or brand name on it. A business will then purchase this product from a third party and brand it as their own. After buying the product, all you must do is add your logo to the front. Often, this is ideal for someone new to the industry who doesn’t yet understand the many complex steps to product development.
Depending on your industry, having experts manufacture the product is crucial, especially when it comes to skincare products because they need to follow FDA regulations.
What is Private Labeling?
We now know white labeling refers to when a manufacturer creates a product for another company to sell under that company’s name. But what is private labeling? During private labeling, you’ll work with a manufacturer to make a product and discuss your ideas for unique formula and design.
For some entrepreneurs, this is likely the next step up. You might turn to private labeling when you better understand your products, ingredients, and target market. You can work with a manufacturer to customize things as you shift from white label to private label.
Pro Tip
Starting out with a private label could be challenging, especially if you don’t yet understand all the terminology. It’s easier to leap into the market with a ready-made product that only needs a label. You can always use white labeling when you start and shift towards private labeling as your great ideas take off and you learn more.
The Benefits of White Labeling
Let’s get into the top advantages of white label cosmetics! Various self-employed business owners use this tactic. In the beauty industry specifically, many salon and spa owners use white labeling for their products, as do beauticians and makeup artists.
Experts also recommend using white labeling if you plan to launch a new product or want some free samples to give out. White labeling is easier than custom-making a product, making for an excellent springboard to launch you into the market.
It’s Budget Friendly
One of the top reasons people gravitate towards white label cosmetics is because they’re more affordable: all you have to do is purchase your product and label it. In addition, the manufacturer already made the product, so you don’t have to worry about testing, certifications, and the other fees that come with making a product.
Pro Tip
Running a business is expensive, and you may have a low budget initially. This is where white labeling saves the day—you’ll have an affordable product to market.
It’s Easier
Skip the hassle and use a company you can trust to manufacture your products. You won’t have to wait on experts to create the formula and then test and certify it before sending it to you for labeling. When you buy white label cosmetics, you only have to worry about adding your branding to the packaging, which helps you restock in no time.
Pro Tip
Since white label products are “general goods,” it’s important to point out what qualities make them great. In addition to this, explain why customers should buy your brand over another.
There’s Less Risk
When it comes to cosmetic products, there are specific guidelines you need to follow to ensure what you sell is safe to use on skin. When you work with a manufacturer to formulate your products, you’ll have to keep those guidelines in mind and then go through the necessary procedures before putting them on the market.
White labeling allows you to bypass all of this since the manufacturer already had the formula FDA approved. As a bonus, this also means white label cosmetics are more time effective, so if you’re in a pinch and need product now, this is the way to go.
Is White Labeling Better Than Private Labeling?
Whether white labeling or private labeling is better depends on who you talk to since the preference depends on your business. Some self-starters prefer the simplicity of white labeling and knowing they can always get the product they need without worrying about higher prices or testing.
On the other hand, plenty of entrepreneurs prefer private labeling because they can get more creative and hands-on with what they sell. In addition, private labeling allows you to customize your formula, which gives you an advantage and helps your brand stand out. However, private labeling comes at a higher price, so it’s not always affordable.
Essential Wholesale & Labs
Essential Wholesale & Labs has wholesale beauty products. We create and sell skin products, hair products, and ingredients. If you run a cosmetics company, you can purchase ready-to-sell products or work with us to customize your own.
When you work with the best manufacturer, it becomes easier to secure the reputation of your cosmetic line. A quality manufacturer focuses on making the best product for its buyers and goes through each step of testing. Skincare is important, and you only want to represent the best quality products. Make dominating the market easy by working with the right manufacturer to ensure you only sell the best products to your customers!
