Five Benefits of Using Private Skin Care Label Products

Selling skincare products to cater to your customer's skincare concerns and product requirements can be a fulfilling but also daunting process, especially if you're not entirely familiar with the entire manufacturing process.

If you're just getting started and you're focusing on establishing your brand, it can be challenging to understand which manufacturing route to take to develop your custom product.

Securing high-quality products from a manufacturer to sell to customers at affordable prices while covering marketing, packing, and logistics can feel too good to be true. Still, thankfully, private labels can do just that and more.

Private labels like Australian Private Label are changing how brands sell their products, ensuring high-quality products at affordable prices. We've compiled this complete guide if you're not familiar with how a private label can manage your skin care business.

We'll discuss the definition of private-label skin care, what you should think about when choosing private-label cosmetic manufacturers, and the five benefits of selling a private-label skincare range.

What is private-label skincare?

Before we discuss the benefits of selling a private-label skincare range, let's discuss what this means. A private label skincare manufacturer is a third-party business that produces cosmetic products like skincare products on behalf of a brand. Third parties like eCommerce stores will then sell the product.

Despite the manufacturing being outsourced, the brand still chooses the product branding, so the product will look like it developed the product itself. This means that packaging will not show that a third-party like Australian Private Label has manufactured the product.

One of the key reasons why many businesses, especially those that mainly exist online, use private labels is to access expert manufacturing and cosmetic formulation for a fraction of the price without needing the expertise to develop this themselves.

This drastically reduces costs and the need for internal formulation experts, which can be costly and time-consuming. Outsourcing allows businesses to devote more time to improving their online presence or focus on building a loyal customer base to ensure the success of their product.

Underneath the bracket of private labels, businesses may come across several types of product manufacturing.

These are white-label or customised formulation products. While it's easy to determine all of these manufacturing types as the same, it's essential to differentiate between them. White-label products are pre-existing products and formulations that brands can sell under their name.

For example, if a manufacturer has developed a skin care product such as a makeup remover, a brand can then purchase this product to sell as their own.

 It's called a white label product as the label is blank, ready for the brand or marketer to fill in with their information. Custom formulation products are relatively self-explanatory. These products are custom formulated for specific brands that have exclusive access to these products.

What you should think about before choosing a private label to produce your skin care products

When you're considering working with a third-party company, such as a private label organisation, there are some things you'll need to have a comprehensive understanding of to ensure you can work as constructively as possible. Here's a guide to what you need to understand before starting your private-label skincare range journey:

The market state

Before you search for a private label company for your skincare range, it's essential to understand the current skincare market.

You should assess what's trending and what consumers look for in the market. 

For example, if you notice that oil-based makeup removal products are trending, consumers are searching the market for these products.

Understanding this before building a relationship with a third-party manufacturer can help you better tailor your products to your customer's interests and help private labels drive sales.

Your market niche

If you're looking for custom formulation when you're searching through private label services, you must first identify a market niche. A market niche is what sets you apart from your competitors. In other words, it's the product or concept that is unique to you or the gap in the market that you're looking to fill with a product.

Identifying this before you look into private-label products will help you collaborate more effectively with a third-party manufacturer to create a custom formulation that fulfils your market niche.

Basic understanding of ingredients

To ensure you have a productive relationship with a private label, it's essential to have a basic understanding of cosmetic product ingredients to ensure you're targeting the market you're looking to tap into and remaining consistent with any products you've manufactured under your skincare range previously.

This is integral to establishing a brand to foster loyalty, as customers may favour products with consistent ingredients.

For example, suppose you've already established a skincare brand and are now looking to outsource your manufacturing. In that case, you may want to communicate with the third party that you've consistently omitted fragrances from your products and wish to continue with this to offer your customers consistent skincare options.

This is especially important if you're using white-label skincare products, as the third party will have already formulated this and will need to find an alternative to suit your branding and ingredient guidelines.

Five benefits to selling a private label skincare range

So you can understand the full benefit of selling a private-label skincare range, we've compiled a list of some of the key benefits you could experience if you choose private-label skin care:

Lower operational costs

Saving money is everything to many businesses, especially in the current climate. So, if you're looking to cut operational costs associated with creating your custom product, you should consider outsourcing your product manufacturing to a company like Australian Private Label.

This is because you control custom formulations and the ingredients that go into your products. 

So, if you don't want to pay for the premium ingredients with a higher price tag, you can omit this from your product. This will keep your product cost as low as possible, meaning you can decrease costs for your customers and increase customer satisfaction.

Efficient packaging solutions

The product formulation is only a tiny part of creating a functional product. Product packaging can make a significant difference in how your product performs. Thankfully, private labels have comprehensive industry knowledge regarding packaging solutions and can help you create custom packaging solutions tailored to your cosmetic and skincare products. 

They understand what packaging your products need to remain effective, as some skincare products may be sensitive to the elements and require protective packaging.

Better quality levels and brand consistency

Using an Australian-owned private label when producing your skincare products can help you secure better quality products, as private labels will have an intensive understanding of cosmetic and skincare testing standards in Australia. 

Additionally, they'll learn how to use pharmaceutical-grade products for more premium skincare products and keep your product formulation consistent with achieving optimal results, ensuring high customer loyalty rates.

Using a private-label skincare range ensures that businesses comply with all regulatory requirements that come with developing their skincare range, meaning they can confidently sell their products, knowing that they are high-quality and trustworthy.

Improved marketing strategies

Developing a marketing strategy can be challenging for any business, as it's difficult to understand what will make people click 'add to cart' when they see a product. However, a private label can take all the stress away. Private labels will help you understand how your product slots into the market, thus allowing you to create an effective marketing strategy that targets the right consumers for optimal results.

Better advisory on raw materials

As private labels specialise in producing products, they'll have comprehensive knowledge of raw materials and ingredients that are best for specific uses. That means brands who use private labels will have access to expert advisors when creating a custom product, meaning they can enhance their product quality.

Summary

If you're looking to develop a custom product that guarantees quality for your customers, look no further than Australian Private Label. We can provide you with a product that aligns with the vision for your business, taking care of your branding and product formation to ensure your product fills the gap in the market you want to target.

Outsourcing your production knowledge takes one more thing off your plate, meaning you're free to focus on other areas of development to help your skincare or cosmetics business succeed. To discuss our private-label products or how you can start designing your skincare range, contact us today to find out how we can help you.

FAQs

What is a private-label product?

A private label product is produced under a third party and sold as a brand's product.

Do private labels save money?

Private labels can save businesses money for production as brands can choose inexpensive product ingredients, thus reducing operational costs and improving their profit margins.

Can I still sell private-label skin care under my brand?

Yes! Private labels will not appear on your product's packaging, so brands will still sell cosmetics under your brand name.