People often get confused between the terms private label and white label and think they mean the same. However, even though they do have certain similarities, there are several prominent differences too.
If you are a business owner who just started in the clothing business, then you should be well aware of these 2 vital business models before taking any decision in these areas. Also, the information given in this blog will help you to decide which one you should opt for.
What is Private Labeling?
A private label clothing brand or manufacturer produces items following the instructions of a business owner or retailer so that the items are thoroughly customized before it gets labeled, and this is exactly what private labeling means in simple words.
Private labeling helps business owners to get their desired clothing items at more affordable rates (one of the reasons why more and more people are shifting to this model lately). If you consider going with this model then remember, one of the most prestigious private label clothing manufacturers Canada offers smooth and easy private label clothing solutions at an attractive price!
What is White Labeling?
White labeling refers to generic clothing items that are generated by manufacturers to be sold by other retailers and business owners. The people investing in white labeling then can rebrand these items, i.e put their logo on and sell them as their own. This makes it look like the products have been created by the resellers.
How Much Similarity is There?
There are some key similarities between private label and white label.
Absence of Any Trademark
The manufacturing companies don’t have any trademarks over the clothing items they sell via private label or white label models once the contract is signed. Both white label, as well as private label, are B2B models. So, in both these cases, the consumers often have no idea that the items they are using are actually made by some other company.
The retailer is the one who is in absolute control of the entire marketing procedure and the advertising strategy in both cases. They can give the clothing item any name they want.
Where Lies The Difference?
Now that you know the similarities, take a look at the differences as well.
While the white label is more popular and widely used in the technological fields like marketing, IT, private label is a more preferred option for physically-produced items such as clothing, household products, etc.
Based on Exclusivity
While the private label manufacturer produces the clothing items exclusively according to the wishes of the retailers and business owners so that their products are unique from the rest, the white label manufacturer can produce the same product that can be available to be used by multiple resellers.
The Customization of Items
The private label clothing items can be more personalized than the white label clothing items as the former means the business owners send their desired designs via mail to the manufacturer before the mass production starts. However, many white label manufacturing units these days offer flexible solutions.
So, Which One to Go With? Private Label or White Label?
The answer is quite simple actually. If you wish to have more natural creative freedom and are aiming to focus on striking the chords with a particular type of audience then private label is for you and if you already have an established customer base then white label would be more appropriate.
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