Why Hire Private Label Skin Care to Jump-Start Your Business?

products for private labeling cosmetics

Are you ready to get started with your business? But, don’t know if working with private label skincare will do the trick? Then, you are in the right place. Here, we will talk about the benefits of hiring private label manufacturers when working with any skincare product.

Store brands or private labels are a line of products in a range of industries that offer cheaper alternatives to international, national, or regional brands. In 2020, the market share of private label brands was 19.5% in the U.S (1).

Reaching a staggering $158.8 billion in retail sales for packaged goods. This is what private label skin care can offer for your eCommerce or any type of business. But, first, let’s cover the basics.

Private Labeling – How Does It Work?

The process from creating to selling an item, like body care products, for example, begins with the manufacturer producing the product. The manufacturer then supplies that product to a retailer. The retailer ensures that the product obtained reaches the consumer.

In some cases, the consumer could be a reseller and continue to sell the product. Established skincare brands create their own product, packaging, and branding. But, in the world of private label skin care, a retailer, will put their own branding on the product they bought from the manufacturer.

Private Label Vs Contract Manufacturing

Do you want to figure out the difference between private label and contract manufacturing? The outcome of the services is exactly the same – you are getting a product that you can sell. The primary difference is in the process. Take a look at the differences below(2):

Private label – This is an option where you select an already existing product from a manufacturer and then print the name of your business on that product. Many start ups choose this option out of convenience and affordability.
Contract manufacturing – This is more of a DIY option, meaning that you decide every aspect of the product. That includes a custom formulation, filling, and packaging with the assistance of another company or multiple companies.

Whether you pick one or the other comes down to the unique criteria of your business. As well as your market opportunity. If you are building an already well-established brand, then contract manufacturing can come in handy. But, for a start up, private labeling can be a solid solution.

How Do I Know If Private Labeling Is For Me?

The reasons retailers take this approach are many and often have to do with satisfying a bigger consumer base. So, how do you know if this will be a lucrative approach for your business? Private labeling is a great option for these scenarios:

You want to try a new venture. – Many people who want to open up a business from the comfort of their home opt for private labeling. If this is something that bodes well with your current interest, then it makes sense to give it a try. With enough research, you can penetrate the market.
You just opened up shop. – Getting products is expensive. Particularly if you have yet to set up a base. Working with a private label skin care manufacturer comes a long way.
You sell popular merchandise. – You know a product that does well on the market. Now, you are looking to get recognition by selling that particular product to a broader consumer base. That’s where private labeling can be of use.

Top 6 Reasons to Work With Private Label

Private labeling is better meant for a smaller business. Especially one that doesn’t have the time or resources to spend on building product lines from scratch. You can then use this opportunity to build your brand. Here is a more detailed look at the benefits of hiring a private label manufacturer.

1. You Get a Better Price Range

Top private label skin care is more than capable of producing cosmetics that are cheaper than national brands. Since they work with various clients, manufacturers can scale their production and offer manufacturing solutions at a lower price.

A private label product is often 30% lower (3) compared to the price you will get from a national brand.

If you want to expand your skin care line, but you need to manage your expenses, then, it is a good idea to work with private label skincare, like the one we offer at Adonis MFG. With our state-of-the-art manufacturing facilities, we can create products that can fit any budget and still maintain a high-quality standard.

Besides, when you do decide to expand your product line into a new market, you will be taking risks. Working with private label manufacturers mitigates the risks. Your business won’t face a massive financial loss if the product doesn’t succeed on the market.

2. You Rely on a “Plug & Play” Approach

Private labeling has a ton of advantages. For example, when you hire a top private label company, you get access to what is called a “turn-key” (4) process. Basically, a turnkey private label manufacturer takes care of your product’s:

Packaging
Formulation
Manufacturing

So, the time it would take you to launch a new product into the market, like let’s say a custom formula for a hair care product, will be notably reduced. The reason for that is relatively simple. When the product is ready for sale, shipping with a private label can be a lot faster.

You get easy and quick access to your product. There is no ramp-up, design, or engineering phase required. Plus, private labeling takes some of the weight off your shoulders. It makes for a practical approach, instead of you having to take over the production process by yourself.

3. You Improve Customer Loyalty

Customer loyalty is a key aspect of any business. Roughly 56% of consumers (5) stay loyal to a brand that understands them. It gets their needs, tastes, and expectations. While 65% of a company’s business comes from its current consumer base. When you increase customer retention by 5%, you can boost your profit from 25% to 95%.

When you work with private label skin manufacturers, you get a product that consumers get attached to. So, if you end up creating new products in the future, your current client base is more likely to support your endeavors. If you are eager to establish a noteworthy and loyal consumer base, then taking the private label route can be worth it.

4. You Get the Capability to Stand Out

Skincare was a leading category in the global cosmetic market in 2020. It accounts for roughly 42% of the global market (6) In other words – competition is stiff. To sell your skin care products to a much broader audience, it’s good to have a couple of tactics up your sleeve.

To break through the competitive market and topple your competition, it is critical to offer old and new consumers retail products that look and feel different. You can make that happen through private label skin care.

A renowned private labeling manufacturer, such as ourselves, have valuable industry insight that can provide you with everything you need. From the product’s design to formulation, we offer you the chance to stand out and make a mark in the industry.

5. You Obtain a Higher Profit Margin

Opening a business takes a lot of time and effort. But, your investment is limited. For many, growing wealth can take months or years. When you start slow, you start with a small amount of cash. You then plan the expenses in a way that will create the best outcome.

At times, businesses that pick private labeling can get a bigger profit margin than those that go with contract manufacturing. The reason lies in the upfront cost and initial investment, which are generally lower.

With an option such as this, you can better manage your profit and keep your business on the right track. The goal is to grow your business at a steady pace. With a smaller upfront investment, you will have more resources to spend elsewhere and focus on future product development.

6. You Can Tackle Many Challenges

Private label can help your personal care product succeed. Manufacturers companies have plenty of experience working in the field. They have different clients, all of whom have unique challenges and needs when creating a product. With years of specialized service, manufacturers offer the best solution that can steer you towards success.

We at Adonis MFG believe that our success reflects on our clients. We are eager to share our industry insight so that beauty brands can trust us with their care product. The goal is simple – you get a product you can sell and it benefits the business in the long run.

Wrap Up

As you can see, there are a lot of advantages when it comes to hiring a private label manufacturer. Although you will have to rely on your manufacturer, the option itself offers ample opportunities for success. We at Adonis offer certified product manufacturing that will align perfectly with your needs. With a trustworthy manufacturer by your side, you can always stay on the right path.