What’s the difference between Private Label and White Label?

Private Label Manufacturing is when a contractor or a third-party manufacturer manufactures products under the specific retailer’s brand. Under a Private Label Program, the brand owner reaches out to the manufacturer with an idea or a set of ideas to develop from scratch. The product is created from scratch and custom under this program.  

 

White Label Program, on the other hand, is a more simple way of starting a brand. Under White Label Program, the brand reaches out to a manufacturer and uses one of the in-house pre-made formulas to label under their brand. The product does not need to be created from scratch. The retailer or the brand owner can “slap” their label on a pre-made formula. White Label Program enables the retailer or brand to start with a very small minimum order quantity. 

 

Benefits of Private Label Program:

  1. Ability to customized formulas according to retailer or brand’s specifications. 
  2. Freedom to choose a wide range of custom packaging. Creating packaging from scratch. 
  3. Reverse formulating an effective product in the market. Copyright and trademark must be checked.
 

Benefits of White Label Program:

  1. Starting with a very small minimum order quantity (MOQ).
  2. Fast turn around times. 
  3. Ability to test the market with a product before deciding to invest a large sum of money upfront. 
 

In conclusion, both the Private Label and White Label program have their benefits and downsides. If you have a formula and want to start from scratch with decent investment money, then the Private Label Program might be a good fit. If you have limited time and budget but want to test the market with a small minimum order quantity (MOQ), then the White Label Program might be the way to go. 

 

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Difference between Private label and white label CLM Group