What is Private Label and how does this business work?

What is Private Label and how does this business work?

Private labels have become one of the most profitable ways for small and medium-sized companies to sell any type of product. Thanks to this, they can obtain some items at very low prices and with the possibility of labeling them with their own brands

Perhaps this is what has made this type of business more attractive, since many companies, especially supermarket chains and stores, can acquire the products and sell them under their own brand at a very affordable price, which has allowed them to be one of the best-selling units in the market. 

This is how large companies have started to help other businesses with their brands, allowing them to create their own private label so that they can sell a product as if it were theirs, but in reality it has been manufactured by someone else. That is why we will teach you a little more about how all this works. 

Best private label manufacturers 

If you are interested in purchasing private label products for your personal business to sell items that are registered under your own brand, then it is important to make sure that you select one that provides quality and safety in each of the units purchased. 

That is why we are going to show you a list of the best private label manufacturers that you can start hiring right now. 


It is one of the most important manufacturers of natural cosmetics in Spain and one of the fastest growing in the market in recent years. Thanks to this, it has taken another step towards innovation and offers you the possibility of increasing your income through the private label, allowing you to sell its products under your own trade name. 

It also provides you with all the necessary knowledge so you can create your own brand and sell it in your business, offering you different types of strategies that you can apply. In addition, the minimum purchase is 200 units with really low prices that allow you to obtain profit margins of more than 50%. Thanks to this, 500Cosmetics is considered one of the most profitable manufacturers today. 

MS|LAB Cosmetics Laboratory 

Characterized by being manufacturers of natural cosmetics specialized in the creation of private label products and third parties. Here you will find everything you need for skin and hair care, as well as different types of creams and lotions at very good prices. 

The company offers a white label sales system where buyers can purchase from a minimum of 200 units at very low prices and with high quality products. This is how they can order their entire catalog and start placing their first orders under a personalized brand. 

Natural Solter Natural Cosmetics and Ecology 

Natural Soler is one of the main manufacturers of private label cosmetics in Spain, which offer a very remarkable experience and trajectory with more than 10 years in the European market. They also offer the private label since 2011 and since then they have a very wide catalog for their suppliers. 

If you are interested in acquiring their private label line, you can do it through their virtual catalog and from there know each of their products. Natural Solter also stands out for offering a very good quality in each of its available items, which assures you very economical purchases. 


If you are looking for skin care products under the private label service, then here you will find one of the most recommended manufacturers for it. This is how this company stands out in the items related to this so here you will find everything you need for you and your business at very affordable prices. 

Mimesissensations offers items ranging from sunscreens, hair nourishing oils, micellar water, facial mist and many other products that will be at your disposal. To do this it offers a very extensive catalog that you can view online for purchase where the profit margins you will find are very striking. 


It is a professional cosmetic firm from Spain where you will find more than 400 products of all kinds related to beauty and skin care. This is how it stands out for the quality of each of its articles which are highly recommended. It offers you profit margins of 30%. 

To do so, they manufacture them through formulations with natural ingredients and sustainable processes that guarantee the quality of each of their units. In addition, they comply with the fair price policy, so you only have to request their white label catalog and start distributing them under your own signature. 

What is private label and how does it benefit you? 

Private label or private label is what retailers must use to differentiate the products they buy through the private label, which are offered by large companies that thanks to their success decide to help other companies that are just starting out, although many others positioned in the market also use it to take advantage of it. 

So these products are offered by a distributor to different suppliers who are in charge of customizing the product and marking it with their own logo, this is how the private label becomes the main feature that allows differentiating the unit from other competitors that use the same one. 

Therefore, in order to start a private label, the first thing that companies must do is to study the potential of this product, that is to say, that it is in high demand, which allows them to sell it in the shortest possible time, as well as the benefits it brings to customers and its price. 

These private label products are usually sold with a label that only contains their function and ingredients, so the company that purchases them must take care of placing its own logo and brand name so that consumers can recognize it. For this it is important to have a commercial name created and registered

If you already have it, then this will prevent third parties from copying it and selling under your own name. In fact, this type of business is seen a lot in supermarkets with food, as well as in beauty products. Therefore, the private label is generated when the buyer uses its own brand on the item and not the manufacturer’s own brand without this being illegal, for this the selling company must offer such service. 

What are the types of private label available on the market? 

The use of private label in the market has become very popular since 1990, and in fact it is currently considered to be booming due to all the benefits it provides to suppliers. However, it should be noted that there are currently four types of private label, which we will show you below: 

  • Retailer’s private label: These are marketed under the name of the establishment that sells them and usually compete with official brands for their good quality. 
  • Generic brand: They are offered with their generic names so they do not have a commercial name. Generally, this is seen a lot in foods such as sugar, oil, milk and they tend to have a lower quality. 
  • Private label: In this case, the products will carry a private label that is not exactly that of the establishment that sells them, but rather a commercial name that allows them to be identified in the market. 
  • Private label: This is a brand name directly from the manufacturer and which is sold to a certain retailer who is willing to use that name and which is of very good quality. 

What are the benefits of buying private label products? 

Manufacturers are responsible for creating a good quality product to sell at a cheaper price to the supplier, but the supplier has the task of labeling it with its own brand.

This is how this type of business, generally offered by large companies, usually provides some advantages to its buyers, who are generally small and medium-sized companies, which we will show you below: 

Economic savings 

Products sold under the private label system usually cost half their average price, which clearly means great savings for the buyer, especially if he plans to purchase a large number of units.

Increased quality 

At the beginning these products were catalogued of very low quality mainly because of their low prices, but due to the competition of the companies that offer them, nowadays you can get very good articles that have nothing to envy to those of other brands already positioned. 

The increase in their quality has been so great that even many of these products compete directly in the market with large firms, so it is important that you look for a guaranteed manufacturer. 

Your own business image 

In general, most stores such as supermarkets usually label these products with their own name, which allows them to sell certain consumer and personal use units under their own signature, something that makes them more interesting. 

This has also been applied in other types of commerce, as the private label gives small and medium-sized businesses the possibility of having their own product that causes greater interest in the public and gives the store more credibility. 

Time savings 

One of the main benefits of the private label is that the companies that buy them will be able to save a lot of time in the manufacture and marketing of the products. Since they will not have to do any of this, but simply take care of the labeling of the units and then put them on sale. 

A fixed point of sale 

If you sell a product registered under your name, this means that people will necessarily have to come to you to buy it because other stores will not have it unless you start distributing it. 

Increased number of sales

Generally, private label products are sold more frequently than those of other original brands because they are usually cheaper and offer a very acceptable quality, which allows buyers to choose them. 

Types of companies using private label 

Nowadays there are different types of companies that use private label as a source of income, that is why we will show you each one of them below. 

Retail companies 

Retailers tend to take advantage of these types of products to use them in their sales catalogs, which is how they are one of the largest consumers of private label, although it is true that the acquisition of them can appear in any sector, even companies like Walmart have made very good sales of their own branded products created by other manufacturers. 

Electronic companies

Although they may not think so, many of the large manufacturers of high-end mobile devices and computers often place their brand on other manufacturers’ private label products and then sell them as their own. This is an industry where this is very common.  

Makeup and health care companies 

Nowadays you can find different distributors of health products that offer private label, as many companies are only responsible for registering their brand to each of the products and then market them, which is why you can find many brands within the sector. 

Multinational companies

Multinational companies have also known how to take advantage of this, especially those that mass-market a specific product, so by buying in bulk and at very low prices they usually get many advantages in this regard, especially in terms of profits. 

Banking entities 

Not all private label products must be tangible, as in banking institutions there is also the private label where it is applied at the time of credit card processing, which is why many banks usually offer these plastics with their own brand. 

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