Private label what is it and what are the advantages

Private label is a new stage in the product business. If previously products were “like everyone else's,” now you can create unique offerings for your target audience under your own brand. This approach is suitable for achieving high sales volumes and substantial profit, increasing brand awareness, and establishing a firm market position.

Advantages of the private brand strategy

Creating your own brand is possible in two formats. The first — manufacturing products according to your technology and designs. The second — branding already existing designs with your logo (with minor or major changes).

Main benefits of a private label:

• High income, as you are offering a unique product, not just reselling.
• Strict price control. As the brand owner, you set the product's price.
• Ability to build your audience and promote products under your name instead of generic Chinese “no-names.”

Disadvantages:

• High entry cost. You’ll need to invest in manufacturing (around $1,500–$4,000), register the private brand, and arrange delivery of the first batch.
• Getting started takes 3–4 months, considering production and shipping time.

Every entrepreneur decides for themselves which strategy is more profitable: dropshipping, reselling, or private label.

Private Label: How and Where to Launch Production

90% of business owners choose China first. Its exceptional capacity, thousands of factories, cutting-edge technologies, and unique developments make it ideal for private label manufacturing.

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There is also the option of local production. While you might save on logistics, overall, you’ll pay more. Thanks to scale, modern equipment, and experienced workers, China is far more efficient and affordable for branded goods.

Process overview:

• Finding a manufacturer: on marketplaces, in databases, or at fairs.
• Negotiating technologies, designs, and pricing. Be sure to sign a contract preventing the factory from reusing your developments for other clients.
• Factory inspection — highly recommended. This helps estimate the speed and success of the production.
• Starting and receiving test samples. At this stage, you can request changes until you achieve the perfect result.
• Full-scale production of a wholesale batch — the most cost-effective option.
• Checking the finished products at a warehouse in China.
• Shipping goods from China to your store or warehouse.

If your private label goal is simpler, the process is shorter. The manufacturer simply produces the goods and applies your branding.

DiFFreight — Your Assistant in Creating a Private Label

Starting your own brand might feel overwhelming — there are many details and steps you haven’t dealt with in regular product trading. But DiFFreight will lift the burden off your shoulders! Besides logistics, we offer many additional services:

• We find reliable factories for your brand: only technologically advanced and well-equipped workshops with fast production timelines. We also check the documentation!
• We inspect production and test batches. No need to travel to China or wait for the goods to reach your hands. We provide photo and video reports with full material and product descriptions.
• We deliver goods efficiently: consolidation of all your supplies or shipping with other clients. You can also create a schedule to purchase the entire container while the goods are stored at our warehouse in Foshan.

Logistics company DiFFreight can ensure that your goods are transported as quickly and efficiently as possible, at a rate that suits your budget! We are always available and ready to consult businesses across various industries.