Navigating the intricacies of beauty product development in the cosmetics industry often involves encountering terms like private labeling and white labeling. These terms are frequently used interchangeably, along with related jargon such as cosmetic OEM and ODM, contributing to the confusion. In this article, we'll delve into the distinctions, specifically between private labeling and white labeling, shedding light on which might better suit your specific situation or goal.

What is Cosmetic Private Labeling? 

Private labeling entails entering into a contract with a third-party manufacturer and specifying every aspect of the product according to your vision. For instance, if you are creating a serum, you would specify aspects like the formulation, container design, and packaging. This approach allows for comprehensive customization, providing a brand-specific experience. You can provide your specific formulation or ingredient list, and the manufacturer can reproduce it. Or if you don't have a full list of ingredients, you may also provide certain key ingredients that you'd like to include (eg. pure vitamin C, niacinamide retinol, retinal, alpha arbutin, etc.), or specific substances that you'd like to exclude (eg. no fragrance, no artificial coloring, no parabens, no sulphates, no silicones, etc.). 

The Benefits of Private Labeling 

• Own Formulation: If you have a unique formulation in mind.
• Long Production Time Acceptable: When you can afford an extended production time for meticulous product development.
• Targeting a Niche Market: When aiming for a distinct brand experience tailored to a specific market.
• Market Differentiation: To stand out in a competitive market.
• Design Team Availability: When you have a design team to execute the envisioned customization.

What is Cosmetic White Labeling?

In contrast, white labeling involves entering into a contract with a third-party manufacturer and utilizing their existing formulation to create a product. For example, if you want to develop a serum, you would leverage a formulation the manufacturer has already created. While some adjustments may be possible based on your feedback, the customization is typically limited to the design of the container and packaging. In some cases, some manufacturers will alter the formulation based on your feedback, but in most cases you will only be able to control the design of the container and packaging. In other words, you would have fewer options to customize. 

The Benefits of White Labeling

• Lack of Formulation: When you don't have a specific formulation in mind.
• Short Production Time Required: When a quick speed-to-market strategy is more advantageous.
• Limited Customization Acceptable: When design customization is sufficient, and you don't need extensive product customization.
• Absence of Design Team: When you lack an in-house design team.

How can you do private labeling or white labeling? 

Determining the most suitable method depends on your specific circumstances. Depending on your situation, you may be able to benefit from either method. In some cases, simultaneous development of multiple products through a combination of private and white labeling might be the optimal strategy. 

If you find it challenging to decide which approach aligns better with your needs, submitting an inquiry on MAYK can connect you with a dedicated manager who will guide you through the process of starting your own brand.