White label in the beauty industry - what is it and what opportunities does it offer?

The cosmetics industry is growing rapidly and companies are looking for different strategies to establish themselves in the market. One popular business model is white label, i.e. the production of cosmetics by a single manufacturer who then makes them available to other companies for sale under their own brand name. This solution offers many benefits, but also comes with some challenges.

What is white labelling in cosmetics?

White label is a business model in which a manufacturer creates a finished product and another company sells it under its brand name. In cosmetics, this means that companies can offer high-quality products without having to invest in costly production infrastructure and formulation research.

Advantages of the white label model in the cosmetics industry

1. Time and cost savings - companies do not need to invest in cosmetics researchproduction and laboratory testing, significantly reducing the cost of entry.
2. Faster time to market - finished products can be sold almost immediately under the new brand.
3. Flexibility - the ability to tailor packaging, labelling and marketing to your own brand vision.
4. Access to tried and tested recipes - The white label allows the use of ready-made, tested cosmetic formulas.
5. Risk minimisation - reduced initial investment means less business risk.

Disadvantages and challenges of white labelling in cosmetics

1. Lack of uniqueness - the same products may be offered by many companies under different brand names, which can make it difficult to stand out in the market.
2. Limited control over the recipe - companies using a white label do not usually have the possibility to modify the composition of their products.
3. Dependence on manufacturer - the quality and availability of products depend on the supplier, which can cause problems with logistics and delivery.

White label versus private label - differences

Although often used interchangeably, the terms white label and private label differ significantly. White labels are products that are available for many brands, while private label means that a product is produced exclusively for one company, which gives it greater uniqueness in the market.

Which model of strategy to opt for?

The white label model in the cosmetics industry is an excellent solution for companies that want to enter the market quickly, minimising costs and risks. It offers the opportunity to sell high-quality products under their own brand without investing in production. However, success in this model depends on proper marketing and brand value building to stand out from the competition.