According to Fortuner Bussiness Insights, the current size of the Cosmetics market is around $400 billion. In such a large cosmetics industry, there are mainly two types of labels used to create and sell the products.
These include white and private-label cosmetics. Both of these are two separate entities that you need to be aware of before creating your brand. So, let us learn about white and private-label cosmetics in this article.
What is White Label Cosmetics?
White label cosmetics are no-named cosmetics that are manufactured by a third-party cosmetic company that does not sell them by their own name. Rather, they supply the products to beauty, skincare, makeup, and cosmetic brands and those brands market the products as their own by putting their logo, label, and other information on the cosmetics packaging.
Simply putting, the formulation of the product is done by a white label cosmetics company while its branding is done by the beauty brand that sources it through cosmetic jars packaging.
So, several brands might be using the same product formulation but selling it under different names. The brands have the liberty to choose from diverse formulations and ingredients.
Thus, high-quality cosmetics are manufactured at a relatively lower cost through white label cosmetics. Such wholesale cosmetics are used by salons and economical beauty brands.
What is Private Label Cosmetics?
You must already have an idea that white label cosmetics have a pre-made formulation which the beauty brand cannot change according to its standards. Private label cosmetic companies do the opposite.
They allow the cosmetic brand to choose the ingredients, formulation, consistency, texture, and more of its products.
Resultantly, the final product formulated by private label cosmetic manufacturers is unique to a single brand. Also, you can get customized and sustainable packaging in the material and design of your choice.
Therefore, you can create luxury private label cosmetics and claim all rights to everything from their formulation to packaging.
Also, if you are working to establish a new high-end brand with original products, private label cosmetics suppliers can help you more than white label cosmetics manufacturers.
Comparing Private Label Cosmetics and White Label Cosmetics
White label cosmetics and private label cosmetics are totally different things. However, you have to know the key differences between the both to decide which one will suit your brand more than the other.
1. Ownership
When it comes to the ownership of the formula of the products, white label cosmetic manufacturers are owners and they seldom change the product formula according to the customer’s demands.
Also, the customer has no rights to the product formulation. On the other hand, private label cosmetic manufacturers allow the brand to be the owner.
Other than formulation, the cosmetic brand is the owner of the final product after it has been packaged and found its way to the shelves in the market.
2. Quality Control
Whether it is the white label cosmetics or private label cosmetics, the cosmetic manufacturer is in harge of creating the product and ensuring quality control.
However, the difference lies in the fact that customers can closely monitor the development process and thus the quality of the products while working with a private label cosmetics manufacturer.
On the other hand, the beauty brand might choose a high-quality white label cosmetic product in the first place as it cannot control the quality afterward.
However, if you have no one to supervise production of the private label cosmetics, their quality can be doubtful while the quality of white label cosmetics stays consistent.
3. MOQ Requirements
As the white label cosmetics suppliers supply the same products to multiple brands, the MOQ requirements for the product are lower than that of the private label cosmetics where the manufacturer only supplies products to a single brand.
Also, the manufacturing process for private label cosmetics is long and they cannot be instantly available if needed urgently. A few-week production procedure of white label cosmetics allows the customer to buy a few thousand boxes anytime.
4. Branding
Regarding brand products, private label brands are original and unique making them shine out of a whole myriad of skincare and makeup products.
On the other hand, white label cosmetics products are sold on every other brand making it difficult for a brand to make its mark in the cosmetics industry.
Factors to Consider When Deciding Between Private and White Label Cosmetics
While private label companies appear more profitable, there are several reasons why many brands go for white label cosmetics. So, here are the factors you need to consider when deciding between private and white label cosmetics.
1. Product Development and Quality Control
In private label cosmetics, you are getting the product manufactured, tested, altered, and finalized according to your choice. This gives you more control over its development and quality.
In contrast, you cannot change the quality or development procedure of a white label cosmetics product. So, if you prefer control and supervision of your products, choose private label cosmetics.
And if you can rely on other brands for quality and development, white label cosmetics is a good option.
2. Budget and Time Restrictions
The development of private label cosmetics goes through a number of stages including creating a formula, getting the raw materials for it, the actual process, sampling and testing, and much more. Thus, you need several months to create your own products and it costs a lot of money as well.
White label cosmetics manufacturers sell pre-made products to different brands. As they produce the products in bulk, they cost less. Additionally, they can be manufactured in a few weeks.
3. Customer Perception and Loyalty
Without a doubt, everyone prefers to use items that are unique and created with unmatched efforts. This makes customers perceive private label cosmetics as high-quality products even if they have to pay more.
Also, customers stay loyal to your brand as no other brand is providing the same products. However, white label cosmetics are like fast fashion of the beauty industry which are sold widely and might have a substandard quality.
4. Long-Term Business Goals
Considering the factors mentioned above can help you streamline your business goals. If your business goal is to create an exclusive brand even if you have to have a higher budget, go for private label cosmetics.
If you just want to start selling products as soon as possible and on a budget, white label cosmetics are the best for you.
Conclusion
For the brands that have low budgets, are short on time, have no specific target audience, and can trust the pre-made cosmetic products, white label cosmetics are great.
However, if you have a budget and Time and want the brand to be yours completely and see the products going through different phases, choose private label cosmetic providers.
Whether it is private or white cosmetics label cosmetics, you need a cosmetic packaging manufacturer. So, feel free to contact VCPAK anytime as they can make trendy cosmetic packaging for you.
