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How to start your own private label product

With the popularity of private labels increasing in Europe and the USA, it’s an ideal time to start your own private label product brand.

Why Should You Create a Private Label Product?

Private labels are a great way for independent retailers to compete against national chains and increase shopper loyalty.  According to a report published in December 2011 by SymphonyIRI Group, prices for private labels can be up to 30% cheaper than national or global brands, which means higher value for retailers and shoppers.

Other advantages of creating your own private label product include:

  • Attract trendsetters and curious shoppers who want something different,
  • Having a product that reflects your overall brand identity,
  • Differentiates your business from the competition,

Private label products are now present in nearly every shopping category, from food such as Tesco’s Yoo Yoghurt to home furnishings such as JYSK’s exclusive Nordkapp silk duvet.

What is the process of creating a private label?

There are two main types of private label products:

  • Products that need to reflect or tie into an existing brand directly
  • Products that have to stand on their own merit and name

Keep these in mind when you make your decisions as knowing this will influence where the product goes – and its success in sales.

There is no hard and fast set of rules for creating private labels as essentially you are creating a completely new brand. When we create a new private label silk bedding product for a retail client, we follow the following process:

  • Sit down for a creative brief with the client,
  • Decide on the sizes, colors, and filling weight for the duvet or pillow.
  • Brainstorm for a catchy product name and pick the best one.
  • Choose packaging elements. Keep it simple: the main label for branding and an extra one for technical specifications.
  • Design the product. Core elements you need to consider include the logo and typography of the packaging.
  • Produce & ship the product into stores. You’re done!

Finally, here are some things to keep in mind when you’re designing a private label product:

  • Exclusivity vs Brand Recognition:  A private label means you give your customers an exclusive product that cannot be found anywhere else but make sure you retain other established brands.
  • Price & Customer Loyalty:  Make sure that introducing a private label is actually profitable for you. In some cases, it makes more business sense to license another product with an existing customer base.
  • Timelines & Production Schedules:  Creating a private label takes time. Raw materials, shipping times, and other factors all influence how long the process takes. Make sure you plan ahead!

The future of consumer products is becoming more personalized, so that private labels will have a more important role in the next few years. Keep a watchful eye on your own sales trends so that you know when it’s the right time to introduce a private label.

This is a guest post from Sense of Nature.


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    1. Yes. It is a must, if you want exclusive ownership. Logos are trademarked, Company name is service marked. Long process but worth the wait. I’m in the process myself. Hopefully this helped. Good luck

  1. What is the LIABILITY of a manufacturer (me) if another company bought my products in bulk and re-labeled them , “branded” them their own, with a nod to my company as the manufacturer? I want to avoid the product liability incurred with another company re-packaging, and not be liable if, for example, they get a hair or impurity into my product during their re-packaging process. Is this a labeling and re-packaging a product liability on them once they purchase from me, the manufacturer? Thanks. Kim

  2. Any advice on how to negotiate with a manufacturer once you have a product in mind? I’m new to the private label world but would like to seem competent as I try to move forward with my dream.

  3. If I choose a known manufacturer in the food industry to make their product under my private label, would their certificates cover me too

  4. If I choose a known manufacturer in the food industry to make their product under my private label, would their certificates like ISO cover me too, especially, if the product was packed and labeled in their facility. Like canned and frozen foods for example. Thank you

  5. Are there any us based companies you recommend for private labeling and packaging? New to this and trying to create a plan.

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