If someone would translate the word private label it would probably be best described as trademark. It is a product that is produced for a specific dealer, who developed a name for it afterwards. Right now those products are on the rise and therefore become more and more popular. First it was established in the USA, but the idea of creating own products with a unique brand quickly came to Europe and the rest of the world really fast. Many people have built their own business with their products, which is also the case in Germany.
Everything you need to know about a private label
A private label is a single product that is varied only to a slight degree and then come into stores as the corresponding label The next step is that the retailers produce the items in factories. One can say that only a small percentage of the products will be adapted for the production process so that in the following step only the name of the brand has to be applied on the actual product. Take the following example: You want to establish a strong label for shower gel. You start of thinking about what exactly you want your product to be. If you are clear of that you let a retailer produce those products in a factory and afterwards you put your label on it. The product will then be sold in supermarkets and drugstores. You just need to make sure that your unique product does not violate any rights of other companies. A famous example in Germany is the retailer Rossmann. The store has developed multiple private label and sells them in their stores. Therefore, Rossmann itself is credited as the owner of their labels.
What need to be taken into account for a private label?
Most of the time the private labeler himself has less work. The giant retailer Amazon for example is in no need to do the work labeling on their own. They simply offer the products. When dealing with a private label the founders can control every step very easily and also via remote control. Considering the capital that is needed for such a business you have to take into account that one can start with very little money. That is the major advantage of a such a label. Moreover, one can say that such a construct is flexible to development, new ideas and creative thinking.