Private labeling is the practice of creating a product under a different brand (private) and selling it under its own name. In the food industry this is referred to as “rebranding.” Private label products can be made by any company with the appropriate training. They can also be created by anyone with a good idea and the help of a few private label manufacturers professionals. Private labeling in the food industry is a multi-billion dollar industry that gives small business owners the opportunity to have an independent business and produce high quality products at a reasonable cost.
The private label manufacturing industry is represented by many private label manufacturers and distributors. This can be a simple process when you consider that many companies can process and pack their own products, rather than having to hire a packing company or other employees. Many private label manufacturers are based in the United States, especially in the northeast. In this article I will give a brief overview of what goes on during a private label manufacturing operation.
Many private label manufacturers choose a particular product and then work with several companies to create private label brands. In most cases the company would select the raw materials, process them, and then pack them themselves. In some cases they would select a manufacturer, conduct the manufacturing process, pack the finished product, and then ship it to their customers. Most private label manufacturers find the customer and develop a distribution system that works for them. Most manufacturers find that they can have their own brand of products manufactured and distributed in most cases by the same company, or by another company entirely.
Private labeling involves a relatively simple process. For example, you may want to make herbal tea for yourself or for your family. In this case you would visit an online supplier of herbal tea and choose the varieties you prefer. You may also find that the supplier you choose is too large to manage in-house, and in this case it makes sense to find private label manufacturers who can provide the ability to purchase the bulk of the materials you need, and at wholesale prices, and then the ability to distribute those materials to your customers directly. Alibaba is one of these companies.
Alibaba requires a minimum order quantity for any product that they will import into the United States. If your goal is to find private label manufacturers who can work in the USA but who also make available to you, then you will need to find a provider who is willing to purchase your order from you in the greater Chinese marketplace. This means finding a wholesaler who will buy your order from the Chinese manufacturer, and then ship it to you.
Some Chinese manufacturers operate only within their home country. For example, there are companies based in Beijing that make high quality wool sweaters, hats, gloves, socks, and scarves. However, there are many manufacturers that have operations all over China, especially in the more populated areas like Shanghai, Guangzhou, and Hong Kong. The products these manufacturers make are often very similar to those of the private label manufacturers from the United States, Canada, and Europe, but they often have a much lower cost of production because of the lower costs of labor in these areas. Many of these rural Chinese sweatshops have been converted into factories making everything from disposable table cloths to shoes and electronics items. To find these rural Chinese manufacturers, do an Internet search using the words “sweater made in China”, “handmade clothing”, or “handmade jewelry”.