Question: How Does Private Labeling Work?

A private label product is manufactured by a contract or third-party manufacturer and sold under a retailer’s brand name.

As the retailer, you specify everything about the product – what goes in it, how it’s packaged, what the label looks like – and pay to have it produced and delivered to your store.

What does private labeling mean?

Private label products are those manufactured by one company for sale under another company’s brand. Private-label goods are available in a wide range of industries from food to cosmetics. Specific private label brands managed solely by a retailer for sale in only a specific chain of stores are called store brands.

Is private labeling illegal?

Private labeling has many benefits. You have not mentioned what kind of products you would like to private label but usually there is nothing illegal in private labeling as long as the manufacturer follows standard FDA manufacturing guidelines.

What is a private label example?

Private label brands (or own brand labels) are products sold by a retailer with its own packing, but manufactured by a third party. For example, Tesco sell ordinary branded items, such as Heinz baked beans, but also sell their own ‘Tesco Value’ baked beans.

Why is private labeling important?

The most significant advantage of store brand labels during economic downturns is that price gains importance as consumers increasingly turn to money-saving strategies like increasing private label brands to manage budgets.