Trending Influencers with considerable amount of followers are now capitalizing with their own organic private label line. Influencers transitions the brand into hair or skin care. The sensible entrepreneur knows the next step to capitalize on the amount of followers to work. The dilemma for Emerging Brands or start-ups is whether to start with private label or go full-tilt with contract manufacturing. What’s the difference?
They are basically on polar ends of each other.
When starting an organic private label skin care, you use the manufacturer’s stock formula. This means, you and anyone else can buy the stock formula with minimums as low as 48 pieces per size per bottle. With private label you have no control over the performance and fragrance. Another thing is that the marketing claims are set for all the products. In summary, you will have a product that has your name but no control of. Why would anyone do that? This is because of the lower minimums and lead time to get a product out in the market.
On the other hand, there’s contract manufacturing. Most contract manufacturers run minimum order quantities between 5,000 to 10,000 units per size, per bottle. Unlike private label, contract manufacturing will be customized by you from the formula to the packaging. The formula you created won’t be sold to anyone else. However, since you have to source and store your own bottle or cap will be another factor that will drive you back to private label. Read the difference between Contract Manufacturing and Private Label here
ACRL offers the perfect solution to test the market for Emerging Brands and Influencers. The Pilot-Program is where you can custom formulate an organic private label skin care product with a low minimum of 65 gallon batch. The pilot-batch program like ACRL, offers the flexibility of custom formulating a private label product is practical and not so overwhelming. Consequently, the initial investment when launching an organic private label skin care product is sensible than committing to a high volume.