Private Label Cosmetic Manufacturers

Charles Wachsberg
Aug 24, 2017 · 2 min read

After the outsourcing wave of the early 90s “Private labelling” (a.k.a White label) is becoming the ‘new Normal’ for brand positioning.

They are products or services are typically those manufactured or provided by one company for offer under another company’s brand. They are goods and services are available in a wide range of industries from food to cosmetics offering benefits to all the parties involved specially to consumers.

In fact in the book “Private Label Strategy: How to Meet the Store Brand Challenge” by Nirmalya Kumar… says it all, proving that private label sales are large and growing, and gives a tough competition to the major & established mega brand manufacturer’s clout and profits.

So there really are no good counter-strategies, except to reduce costs and perhaps spiff up packaging, advertising.

Well.. The above is no-where more true than for the cosmetic Industry — As with any industry This holds a win-win Practice for all involved so also specially for the highly competitive cosmetics market as it is often positioned as reasonably priced alternatives to regional, national or international cosmetic brands aided by eCommerce portals.

Thus the web online presence allows it to easily scale up & climb the value chain since in the recent years some private label cosmetic brand manufacturers have been positioned as “premium” brands developers to compete with existing “name” brands.

Web Rationalization for Cosmetics manufacturers using “Outsourcing”

A company ‘X’ using this strategic method can collaborate with the manufacturer to create a custom blend, which is pretty cost effective and also guarantees that the product is uniquely branded via online presence. Or a company can purchase whatever stock blends they carry, clearly a much cheaper option.

Private Label is done by many well-known brands manufacturers too so Manufacturers NEED to know what consumers truly feel about private label versus national brands, and how these white label brands are working to build their own brand fans.


)

Charles Wachsberg

Written by

The Founder, President and CEO of Apollo Health and Beauty Care (Apollo Corp), a premium developer of private label health and beauty care products in Canada

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade