If you are the owner of a skincare brand that has not yet invested in white-label manufacturing, this article is the ideal read for you. We are going to cover some of the key benefits of going white-label and why this form of marketing has become so popular within the cosmetics and skincare industry.
What is White-Label
Before we dive into it, it’s important to make sure we have a clear idea of what white-label means as an industry term. It refers to the manufacturing process being carried out by a single business, but the products being distributed under different logos, packaging, branding and prices.
There are several benefits to this business model in the cosmetics industry.
Diversifying range of products
Since there is a single manufacturing facility taking on the responsibility of development and formulation for a product, business owners can offer a wider range of skincare products without needing to invest in the time-consuming process of in-house development or outsourcing from multiple manufacturers.
High-quality manufacturing
It is important for white-label manufacturers to have rigorous quality control checks in place since they can be responsible for the product line of multiple brands. This ensures consistency in product quality for each brand. In addition to this, with white-label manufacturing you can guarantee that the formulation being used has been fully tested to EU/UK standards due to the bulk amount that is usually produced and every product is retail ready.
Lower cost per unit
A white-label manufacturer can effectively bring down the per-unit cost for businesses by carrying out large production runs and selling in batches to retailers. This is particularly beneficial for startups and small businesses that are new to the industry and have limited resources.
Increased scalability
As the white-label partnership between brands and the manufacturer grows, there is more flexibility for adjusting matters such as order quantities, introducing a new product range or discontinuing offerings altogether without needing to worry about the impact on in-house manufacturing capabilities.
Low barrier to entry
As a result of bulk amounts of a product already being manufactured, brands can enter new markets without needing to know all the intricacies of producing a niche product. The process of launching a new product line is also made more cost and time-effective due to the white-label manufacturer using existing formulas.
There is more to be understood about white-labelling, but we think we’ve provided enough to pique your interest if white-label manufacturing is not something you might have previously considered. It is a service that we offer at Statfold Natural Products and something that we would love to discuss with you in more detail. You can get in touch with us at sales@statfold-oils.co.uk or on 01827 830871.