The Difference Between Private Label, White Label, and Contract Manufacturing

There is a great deal of ambiguity surrounding the nuanced differences between the Private Label, White Label, and Contract Manufacturing. The pros and cons of each method are distinct, and either can be effective depending on the product being sold and the needs of the users. However, the ultimate result for all three methods is the same: to procure a fantastic product that buyers will want to purchase!

So, you're interested in developing and marketing a cosmetic or dietary product or line... 

However, you cannot figure out how to go about it because you are puzzled about the distinctions between Private Labeling, White Labeling, and Contract Manufacturing.

Don't be intimidated. Trust us…you are not alone. BioSerene is here to provide you with all the information you need to make an educated decision.

So let's take a closer look at them so that you don't end up on the wrong path.

PRIVATE LABEL VS. WHITE LABEL

PRIVATE LABEL

A private label can be explained as a brand only available to a single store or retailer. Therefore, only you have access to the product's name, which has already been formulated and is ready to be customized with your company branding. 

Most of the time, you'll pay to have it manufactured and sent to your warehouse or store. This method is often more suitable for larger businesses that want to take advantage of their store brand recognition. Usually this option requires larger moq (minumum order quantity). Here a customization of formula and packaging is possible. Due to larger moq, you can negotiate for a deep discount and may be able to obtain the product way below wholesale price.

Examples of Private Label

The reduced cost of the items is the most significant advantage of using a private label.  Some of the private label examples include supermarkets that sell value products similar to popular brands.

Hotels, hairdressers, salons, pharmacies, and other establishments may sell private label nail polish, shampoo, toothpaste, etc. Some prime examples are Kirkland Signature, which is only sold by Costco, and Equate, which is only sold by Walmart. Although other companies may carry products with similar formulations, the private label product formulation is available to only one retailer.

WHITE LABEL

A white label product can be explained as a generic product that is supplied to a large number of retailers. Even if the product has already been manufactured and is ready for you to brand it, many other companies can take the exact formulation and  package and brand it with their name and logo.

The manufacturers who provide the white label have a product already manufactured and waiting to be labeled. So all you have to do is choose the items you are interested in selling and make some customizations to the label that fit your branding. White label products require a small order as low as 10 bottles. Usually you purchase these products at around wholesale price. 

Example of White Label

When you visit a small retail store, you may find a product that carries a store's name on label. 

CONTRACT MANUFACTURING

Contract manufacturing is the best option when you have a special product concept or a customized formulation in mind that you want to offer to the market. With a contract manufacturer, you will have complete customization options from start to finish and the ability to brand the product.

When working with contract manufacturers (e.g. a skincare manufacturer or food supplement manufacturer), you need to work with manufacturer on research, formulation, packaging, label type, and product testing. This choice may be appropriate for you if you have a fresh idea and want to build a formula that may position your product differently from other companies. No prior chemistry knowledge is required to participate in this process; however, you should fully understand the formula you wish to create and what your product's purpose and end goal is.

When it comes to adhering to strict quality and safety regulations, hair care and skincare products rely on highly specialized ingredients and manufacturing procedures. However, contract manufacturing levels the playing field by providing access to cutting-edge materials and methods for even small brands. 

So, this is especially beneficial for startups and small businesses, especially those wondering how to launch a product or brand that no one else has. If you have a special formulation, your product can be patented too, 

Contract Manufacturing Examples

Let's imagine that you wants to develop and market natural sunscreen for sensitive skin and that they have determined that their sunscreen is worthy of being purchased by customers. However, you are required to to develop a safe and quality product and manufacture enough sunscreen to fulfill the anticipated demand.

So, you will need to do some initial leg work like market research. For your product formulations and manufacturing, you are able to receive expert advice from the contract manufacturer as well as high-quality ingredients from the contract manufacturer.

THE BOTTOM LINE

While there are many benefits of white label and private label, contract manufacturing allows businesses to manufacture items according to their requirements.

At BioSerene, we take pride in offering private label, white label, and contract manufacturing services to our clients. So whether you are looking for a skincare manufacturer, nutraceuticals manufacturer, or dietary supplement manufacturer, we can offer our unparalleled expertise and superior customer service.