WHY PRIVATE LABEL MANUFACTURERS ARE GOOD FOR YOUR BUSINESS?
White labeling (also known
as "private labeling") is becoming the "new normal" for
brand positioning following the outsourcing boom in the early 1990s.
This type of product or
service is often one that is created or given by one firm and then offered by
another company. People in many walks of life benefit from these Personal care
products manufacturing and services that can be found in a
variety of sectors from food to cosmetics.
Nirmalya Kumar's book,
"Private Label Strategy: How to Meet the Store Brand Challenge,"
proves that private label sales are expanding and challenging existing mega
brand manufacturers' power and profits, indicating that private label is a
viable alternative.
No good countermeasures
exist, other than to cut expenses and improve packaging or promotion.
To be sure, this is
especially true for the highly competitive Cosmetics Product Manufacturing Companies in
India market where it is often positioned as a cost-effective
alternative to regional, national, or worldwide cosmetic brands with the use of
eCommerce websites. However.
To compete with established
"name" brands, several private label cosmetic brand makers have
recently positioned themselves as "premium" brand developers via
their internet presence, making it easier for them to scale up and climb the
value chain.
Justification for
"Outsourcing" by cosmetics firms on the web
Using this strategic
strategy, a firm 'X' may partner with the manufacturer to produce a bespoke
mix, which is both cost-effective and ensures that the product is distinctively
branded via internet visibility. Alternatively, a corporation may acquire stock
mixes from a supplier, which is obviously a more cost-effective choice.
If you're a manufacturer,
you need to know how customers feel about Cosmetic contract
manufacturing in India vs national brand products, and how these
white label businesses are attempting to establish their own fan base.
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