There’s no cookie cutter approach to growing your skincare brand — every beauty company is different with a distinct vision of a successful future. For many, though, going private label is the next best step. Here are seven telltale signs your brand is ready.
First things first: What does private label skincare really mean?
Private Label for Skincare Brands
At a high level, private labeling is the process of denoting a product under the name of a specific brand (yours!), rather than the name of the manufacturer (like TaikiUSA).
In many cases, private label skincare manufacturers have an existing line of solutions that brands can build products off of (instead of starting from scratch). If the partner is quality, they also have a dedicated R&D team that can help you create – and then manufacturer – a brand-new concept.
The right partner can help brands expand their product lines, create well-designed and functional packaging, and address any unexpected problems. Other benefits include:
- Saves you time so you can focus on your marketing/sales strategy.
- Minimizes headaches of sourcing ingredients because your manufacturer has established relationships and sources.
- Allows you more room to innovate because they have the infrastructure and resources to devote to R&D and testing.
Interested? Let’s see if your growing skincare brand is ready to go private label.
7 Signs Your Skincare Brand Is Ready to Go Private Label
#1 — You Have Specific Product Ideas
For beauty brands that have tangible dreams, bringing those specific ideas to a private label manufacturer is a great next step.
Maybe you’ve even created samples or concepts of these products, but you just don’t have the ability to manufacturer them at scale due to time, money or infrastructure.
Since you already have a beauty solution idea, make sure the private label manufacturer you choose has the ability to really bring your vision to life – and grow with you as your new idea gains traction.
#2 — You Sell Out of Product Too Fast
For growing and well-established brands, sometimes bandwidth becomes a problem. If you’re struggling to keep up with a high influx of demand (a good problem to have!), this is a sign that you are ready to partner with a private label manufacturer.
If you’re constantly selling out of products, that means your customers love what you create — but you may risk losing them because they can’t purchase from you when they want to. A private label manufacturer can help you keep pace.
#3 — You Have Established Customers
Having an established a customer-base is a huge pillar of beauty brand success.
However, keeping customers engaged is a continuous challenge for global brands that can only be met with an appealing variety of trend setting solutions.
Partnering with a private label manufacturer will give you the capacity to create innovative solutions that your customers will love, while freeing up your time so you can focus on your marketing and sales efforts.
#4 — You Want to Experiment With New Products
Without a private label manufacturer, experimenting with new products can be an overwhelming, expensive and risky venture. If a custom product you have developed falls through, your brand might take a huge financial blow.
However, the risk is lower when you experiment with the help of a private label manufacturer. They have the infrastructure and means to support R&D without the risk. Going private label can give you the freedom and confidence to experiment with new products and formulas that your customers haven’t seen from you before.
Private label manufacturing can also provide you with the means to create certified products. For example, if you want to create products that are organic, vegan, sustainable or cruelty-free, you can partner with a private label manufacturer that offers those certifications. These days, customers are prioritizing sustainability and more natural products, and private label manufacturing can assist you in adding these to your skincare line.
#5 — You Have a Sales Platform
If you plan to go private label, you need to have an established sales strategy so you can meet minimum order quantities (MOQs) and then actually sell that product.
At a baseline, you need a platform to sell your products, whether that be a website, a brick and mortar store, or both. When you partner with a private label manufacturer, it’s implied that you are ready to create and hit the ground running with selling.
#6 — Your Brand Is Financially Stable
Typically, partnering with a private label manufacturer will be less costly than developing, testing and selling products on your own. This is often because formula testing is built into the process.
However, it’s important to note that most private label manufacturers have set MOQs — before signing a contract, you need to make sure you’re financially prepared to meet those minimums.
Under some circumstances, private label manufacturers may have flexibility with MOQs. But regardless of the contract details, having the financial capacity to sign with a private label manufacturer is fundamental.
#7 — You Are Ready for Growth
Partnering with a private label manufacturer can give you the support you need to skyrocket with your growth.
Going private label is a huge step towards your brand’s growth and success.
When you partner with the right private label skincare manufacturer, your beauty brand will have the means to design and create solutions that set you apart from the rest.