What is a Private Label Skincare Company?

When looking into your own skincare brand, you’ve likely come across the term private label. Private label essentially means outsourcing your product formulations to specialist companies who will create your product for you for a price.

Private label products are becoming more popular in the skincare industry as well as other industries due to the advantages that can be gained from using this production route. But what does it mean to be a private skincare company and what is the difference between private label and a brand?

We will examine the answers to these questions and many more frequently asked questions on private label skincare companies below.

What is a private label skin care company?

A private label skincare company is basically a company that creates unique formulas for products for brands to sell under their own name. A well-kept secret of the skincare industry, private label companies are actually responsible for quite a lot of your favourite brand’s products.

Brands use private label companies to create products that cater to their specific requirements for a few reasons, the main one being that it is easier and quicker to outsource production than to hire a team of in-house specialists to create your unique formulas.

Other advantages of private label skincare products for brands include keeping costs down, adaptability of the products, and the control over what goes into them, how they are packaged and how they are priced.

What is the difference between private label and a brand?

There are a few differences between private label companies and a brand. 

To begin with, private label companies create products for lots of different brands whereas a brand would create only their own products. Private label products belong to the brands they are made for, even though the private label company makes them.

While private label companies create all of the products themselves, brands may outsource, to a private label company, to create products, or make their own. 

Private label companies don’t market the formulations that they make under their name as all control, from pricing to packaging, is handed over to brands. Brands, on the other hand, own their own products, including those made in-house and those made by third-party private label companies.

What is the point of private label?

Private label is popular because it allows brands a quick way to get products onto the market. It is used by brands who don’t have the in-house capabilities or resources to create their own products and can be used as a way to keep costs down.

Brands have lots of control over products created for them by private label companies, from branding and packaging to pricing and ingredients. This means brands can set the best profit margins while keeping costs low as well as giving brands the power to quickly alter their products when the market demands it of them.

Why do companies want private label skincare?

New businesses with fewer resources may find that private label skincare is the best way to go when it comes to creating a product and getting it ready for market. This kind of production can help you to create the product you want without having to hire your own in-house specialists.

Private label companies work to your specifications and are able to create formulas using their own specialists that can then be branded under your company name. Brands also get lots of control over private label products, meaning they can keep costs down which is great for new businesses.

What are the benefits of private label skincare?

The benefits of private label skincare are:

• It is adaptable - When working with a private label company for the production of your skincare, you are able to adapt the formula of products depending on market changes.
• Brands have lots of control - When working with a private label company, a brand is able to control things such as the ingredients, packaging, and price of the products the company creates for them.

Is private labelling a good idea for skincare?

For skincare, private labelling is a good idea, particularly for new brands.

As a new brand, you are unlikely to have the expertise to create your own formulas and products, but a private label company does. Private label companies employ teams of specialists who have the knowledge to create the best products for skin care.

Using private labelling for skincare can help you to get your brand up and running without having to go through the research and development stages before bringing products to market. 

Working with a private label brand can mean creating formulas that are unique to your brand, fit in with your brand values, and can be adapted to what you want.

How do you grow a private label product?

A private label product for your brand will be born out of your brand’s values. When creating the formulation, think about your target market and how they will respond to aspects like ingredients, packaging and branding.

Your private label product should be unique to you and be strongly associated with your brand so that customers keep coming back for this product.

A private label product can be quick to market as production time is reduced by outsourcing to a third-party private label company. This means that adaptations to the product and further production shouldn’t keep people waiting around which can foster brand loyalty.

Private label products are common in the skincare market and many famous brands outsource their production to private label companies, meaning the growth of a product will not be hindered by it being a private label product.

Conclusion: What is a private label skin care company?

A private label skincare company is a company that creates products for skincare brands based on specific requirements. Brands outsource their skincare product production to these private label companies to forgo employing their own experts and to keep costs down.

A private label company can be incredibly useful to new skincare brands as they have the expertise required to quickly launch a product and get it onto the market