A private label is a unique identifier which shows that a product belongs to a particular brand. Think of Nike’s swoosh or Apple’s apple.
Private labels cost money to implement, but they can add significant value to your product. For example, consider how much value is added to a generic white t-shirt when a Lacoste alligator is printed on it.
As such, a lot of businesses have sprung up around the idea of reselling generic goods with a private label attached to them. But producing private label goods is not as simple as just putting a logo somewhere. There is a lot of groundwork that needs to be laid first.
In this article, we’ll cover all the steps you need to take in order to successfully produce private label products.
Make a Plan to Produce Private Label Products
You have to follow different steps in establishing a plan
Choose Your Product
Look through different product categories on Amazon, eBay and similar platforms. The first thing to consider is how saturated the market is for your intended product. Do products in that category have thousands of reviews? Or just hundreds? The less saturated the market, the easier it will be for you to sell the product.
The next thing to consider is your competition. Are they weak or strong? Are there hundreds of businesses selling the same thing, or just a handful? The less competition, the better.
The final thing to consider is your own interest. Can you stay motivated to sell this product? Are you willing to spend hours researching the market for this product? The last thing you want is to burn out before recouping your investment.
Define Your Target Audience
Once you’ve chosen the product that you want to sell, it’s time to define your target audience. First, you research the demographics that are most likely to purchase your product. Then, you narrow down further, until you have a market that you can realistically capture. This means that a target audience of ‘women’ might become ‘women aged 19-35, who enjoy hiking and climbing’.
This is an important step, as it is going to define much of your marketing strategy. Figuring out the size of your target market will also help you set realistic goals.
Figure Out Your Market Positioning
Market positioning describes how your product stands out in relation to its competitors. For example, your product might be ‘the trendy one’ or ‘the environmentally friendly one’. Private labelling is a great way to give yourself unique market positioning.
Find a Supplier to Produce Private Label Products
Finding the right supplier is key to the success of any business. The usual tenets apply here: the supplier should be reliable, communicative, and of course, affordable. However, when you are looking to manufacture goods with private labels, you should also take extra care to choose a manufacturer who already has experience in private labelling.
There are tips and tricks that are unique to private label manufacturing, which an experienced manufacturer will be able to exploit. For example, the best private label manufacturers might refuse to produce goods in certain colours, as a loyal client has already chosen them. This means that while the manufacturer supplies many different businesses, goods belonging to different brands will never be completely identical.
If your supplier doesn’t offer this, at least try to ensure that they does not sell the same product direct to consumers. If consumers can purchase the same product at a much lower price, then the value of your product is diminished.
Where to Find Suppliers
It is very important to know how to find good suppliers.
Use Online Platforms
Online platforms such as Alibaba and Made in China are another great way to find suppliers. These sites allow buyers to compare thousands of potential suppliers, as well as filter their search by price, region and more.
The quality of suppliers on these platforms can vary, so be sure to do your research before agreeing to any large purchases.
Contact a Sourcing Company
Contacting a sourcing company like Easy Imex is a great way to find a supplier. Sourcing companies are experts in their local market and will already have a network of quality suppliers at their disposal.
Many businesses choose to work with a sourcing company as it makes their life much easier. In addition to finding the best supplier for your needs, a sourcing company can also handle logistics such as shipping and import taxes.
Marketing
A private label is only worth as much as the brand it represents. That means marketing is essential. Here are a few things you will need to do to make the most of your brand image.
Create Your Logo and Packaging
There are plenty of great sites for hiring graphic designers. Remember, simplicity is best. The more complex the design, the more expensive and time-consuming it will be to manufacture. Plus, a complicated logo or packaging will not look good when scaled to small sizes. This limits the type of products you can sell.
Once you have a logo that you’re happy with, you will want to get it copyrighted. There is no point putting all of your resources behind a brand that anyone can use.
Set Up Your Website
We don’t need to explain that having a website is essential for almost every business. However, it is not enough to just have an online address. Your website is an extension of your brand, and its design should reflect that.
Create Social Media Accounts
Open social media accounts on the platforms that your customers use. For example, if you are targeting young people, you will need to be on Instagram and Tiktok.
Be sure to post with regularity and ideally, have a content strategy whose success you monitor.
Conclusion
In a world where customers can browse millions of products with the touch of a button, private labelling is a great way to stand out. However, in order to reap the rewards, you must be willing to invest the time and money.
You’ll have to choose your product, research your target audience, build your brand, and find an experienced supplier. However, once the groundwork has been laid, private labelling can be a great way to make consistent profit.
About the Author: Adam
