How do you start a Private Label? Here a easy-to-follow Guide
Quite often it is believed that the creation of a product is an expensive and insurmountable process. Creating an own-brand product isn’t as difficult as you think! Especially if you have clear what are the advantages in creating white cosmetics and medical label. In this article we will explore how to start a private label without running into risks. We will then give you some advice on how to choose a reliable supplier that can bring you to the market safely.
Private label: the meaning
A private label is a custom brand produced by an external company with its own brand.
The idea of creating an own-brand product is certainly an attractive business prospect. Especially in recent years with the development of ecommerce and dropshipping. In fact, the creation of a brand or a private brand can generate large sales volumes. It also gives a competitive advantage by strengthening the perceived value over competitors through its visual differentiation.
Start a Private Label: how to structure a new business
In this short guide, we will illustrate what are the fundamental steps in the realization of an own-brand products line. We will identify which are its advantages and how to solve any problems related to the creation of a new business.
- Identifying the niche market
- Studying competitors
- Searching for a private label manufacturer
- Studying and realizing the products
- Focusing on packaging and design
- Quality control and technical documentation
- Do not minimize packaging and logistics
- Studying markets and sales of the first batches of products
1. Advices on how to identify the niche market
The first step in starting a new business is surely to know the demands of consumers. Do some researches about the market you want to take into account. Try to better figure out your users, their needs, their tastes and the trends of the moment. So you can address to a specific slice of the market and be able to really meet its needs.
2. Studying competitors and focusing on the product differentiation
You need to make your product unique and different from your competitors. This differentiation may concern the intrinsic characteristics of the product, or also its packaging, images and communication. The customization of a product towards a niche market can really become a profitable alternative to the basic product that is already known, for example by choosing an improvement or working on a specific product category. A strategy like this will surely bring results!
3. How to choose a reliable private label supplier
A private label manufacturer is the most important partner in the creation of an own- brand product. Relying on a serious third-party company means not only having the guarantee of being able to produce high quality medical devices and cosmetic products. But it will also follow you in all the production stages with experience and reliability. With a reliable supplier behind you, you can focus exclusively on promoting and selling the product, thus maximizing profits.
4. How to study and realize the winning product design
Once you choose your supplier you will start to study and design the product into detail.
Are you unfamiliar with formulas, active ingredients and textures? No problem! But it will be important to choose a private label provider that can also offer an internal research and development service. Having the guarantee of internal available laboratories, will allow us to receive a consultancy service for the development of new formulations.
The customization of the product is Vida Private Label core business. This company has now been specialized for years in offering advanced and specific solutions for different markets in different business units.
5. Focus on packaging and design: how to give the right push to your product
The goal of every company is to create a recognizable, functional and iconic product. It is definitely the dream of every entrepreneur to be able to obtain an excellent market position also thanks to its design. It is extremely important to be able to ensure that the packaging chosen for your product exalts all its characteristics. The pack must ensure both the maintenance of the intrinsic active properties of the product, its quality and, in case of medical products, sterility.
We therefore advise you to ensure that the chosen supplier guarantees that you can propose different types of pack. Great would be to have the guarantee of both standard and customizable packages.
6. Quality control and technical documentation: how not to get lost during the bureaucratic step
A fundamental part of the entire process to start a private label is the preparation of technical documentation. What does it mean? More simply, the organization of the data obtained from the studies on the product, the passing of the various quality controls and the registration of the brand. It is an indispensable step, however, to be able to give your customers all the guarantee of a quality production process.
A team of specialists of the Regulatory Affairs department of Vida Private Label follows the customer in all the administrative and regulatory practices. Finally, it provides support and the necessary technical material for the products registration and their national and international marketing.
7. Do not minimize packaging and logistics: you are one step away from market entry
Having as a supplier a private label that also manages the packaging and logistics part is definitely a competitive advantage to take into consideration.
Therefore, it is better to realize a line of products having the security of the best technologies in the packaging, storage and in the flows of the products in and out.
In fact, it’s important that your supplier guarantees you:
- Monitoring of raw materials in stock;
- A planned production scheduled according to your needs
- A fast and safe order preparation, shipping/delivery system.
8. Study of markets and sale of the first batch: how to start trading your products immediately
In order to properly place yourself on the market your company needs sales managers. They are key-figures known as sellers, marketers, sales or market analysts and buyers. Very often, however, it is difficult to have the opportunity to include all these figures, especially in start-up experiences and in small companies.
For this reason Vida Private Label doesn not only provide operating support! The company makes use of proactive collaborations with universities and product marketing experts. This allows to combine the main sources of international scientific literature with a constant look at the stimuli coming from the market.
Scientific studies and market analysis become one in order to create effective and efficient product ranges for every type of customer.
We can say that now you really have all the tools! It’s time to evaluate in a concrete way the realization of your own line of private label products, how to start if not with a study of the niche?