Creating your own brand and selling CBD products is no longer out of reach. It's possible to create your own brand according to a number of criteria, including your time and budget. In this article, we'll look at two solutions for selling CBD products: " white label " and "private label". You'll no doubt find confusion between these two terms on the web, but here we'll clarify the definition of each to help you understand them better.
- Differences between white label and private label.
- White label versus private label
- Definition, advantages and disadvantages of white labeling :
- The advantages of white-labelling :
- The disadvantages of white-labelling :
- Definition, advantages and disadvantages of private label :
- The benefits of private label :
- The disadvantages of private label :
- To conclude on these two white-label creation methods
Differences between white label and private label.
First of all, these two resale methods have a number of similarities that may confuse some people. Both white label and private label products are created by a third-party manufacturer(s) and resold in your (e-)store. The products are sold under your brand name, and in both cases, once the products have been delivered, it's up to you to play your part in terms of communication and marketing to make your business a real success.
Let's get to the heart of the matter: in concrete terms, what are the differences between a white label and a private label?
The distinction lies in the degree of personalization of the products resold, and in who determines their characteristics.
To put it simply, if the customer wants to determine the composition of his product, to have control over the design and choice of ingredients, it's best to opt for a private label partnership.
On the other hand, if the customer doesn't want to waste time on product design, a white label is ideal. In this partnership, the supplier or manufacturer determines the entire composition of the product, from R&D development to packaging. All that's left to do is apply your labels.
Ultimately, these two types of branding are used to describe products designed by a manufacturer and sold by a retailer, each with their own differences, advantages and disadvantages that are important to know.
White label versus private label
Let's go into a little more detail. In concrete terms, what are a white label and a private label? What are the advantages and disadvantages of these two brand creation methods? What do these methods imply for you and your organization?
Definition, advantages and disadvantages of white labeling :
When it comes to creating your own brand of CBD products, it's not always easy to find your way around. In our minds, creating your own brand requires a heavy investment of time and money. It involves research and development to create the ideal product, to design its packaging, to find a place to store it, and so on.
Fortunately, for the more ambitious with limited resources, there's the white-label solution.
The white-label principle is simple, and can involve all kinds of products: CBD cosmetics, CBD herbal teas, etc., packaged in totally neutral bottles, oilsCBD cosmetics, CBD herbal teas, etc., packaged in totally neutral bottles. The idea is to allow the brand creator to simply affix their image to the packaging and sell it under their name. In this way, you resell a solution that has already been developed and tested, and is ready for use.
The 4-point process:
- We select or manufacture the best products for you;
- We choose the packaging and specify the composition;
- You select your favorite products, place your label on the packaging;
- You sell.
The advantages of white-labelling :
- Limiting investment and risk
White labeling allows you to limit your investment of time and money. Creating a brand in the CBD field can be expensive. With this method, there's no need to invest in R&D, no need to manage production or product design. You simply capitalize on the expertise of companies already recognized in the field.
White labeling lets you test the market before producing your own solutions.
- Faster time to market
As I said earlier, with white labeling, you skip a large number of steps and go straight to sales. The time between the idea of creating a brand and your arrival on the market is therefore very short.
With Le Grossiste du CBD, you choose fast, no-surprise delivery to get you started as quickly as possible.
- Quality of service
When you place your trust in us, you're assured of the best CBD products and top-quality support.
We provide you with products that meet the highest standards of origin, legality and other characteristics (organic, natural, vegan, additive-free, etc.).
Our team will be happy to answer all your questions and advise you on products, quantities, communication and more.
The disadvantages of white-labelling :
- Products are not exclusive
You don't have exclusive rights to the product. The manufacturer or supplier is free to sell the same product to multiple customers.
- Less product freedom
You have very little scope for personalizing your white-label product. In most cases, product composition, packaging and appearance are generic.
- Dependence on supplier know-how
White labeling assumes that the customer company is dependent on the know-how andexpertise of the original producer. If the customer no longer wishes to work with his supplier, he loses his skills. Conversely, if the manufacturer changes its formulas or manufacturing methods, the customer cannot prevent it from doing so.
Definition, advantages and disadvantages of private label :
Like a white label, a private label product will be manufactured by a third-party supplier and resold under your name. Private label allows you to specify all product components and create something unique for your customers. You have control over what goes into it, the ingredients, the design, the label and so on. Once you've made your choices, all you have to do is test the product, and if you like it, have it delivered to your warehouse or store.
The 4-point process:
- You will work closely with the manufacturer to define all product details;
- The product is developed for you, according to your needs;
- You test the product, ask for adjustments if necessary;
- Once you've developed the perfect product, all that's left to do is sell it.
The benefits of private label :
- A product 100% in line with your expectations
You customize your product and offer an ad hoc product for your customers. Private label is a way to gain control over manufacturing without investing in large manufacturing facilities, personnel, quality assurance or a specialized supply chain.
- Exclusivity
Since you decide on the composition of the product, you have exclusive rights to it. You also benefit from a one-to-one relationship with the manufacturer.
- Marketing under control
Private labels allow you to control marketing right from the start of the project, enabling retailers to adapt their products to local needs and tastes. What's more, you control the image of the product and therefore of your brand.
The disadvantages of private label :
- Time to market
Time-to-market is inevitably longer than with a white label. You need time for R&D, product testing and adjustments if necessary.
- More investment
Compared to white label, you'll need more resources (both financial and time) to develop THE ideal product for your customers. Obviously, this will vary according to the complexity of the project.
- More risks
With this type of project, it's best to have worked out your marketing and consumer expectations, as you won't have the right to make a mistake. In general, private label orders cannot be returned, and if the product doesn't end up being what the customer wants, you can quickly find yourself in a bind.
Many manufacturers may require a minimum number of orders, so the loss can be significant if an item doesn't sell.
To conclude on these two white-label creation methods
White label or private label products now make it possible for anyone to setup a brand selling CBD products. Both have their advantages and disadvantages; ultimately your choice should depend on your values, branding, resources, business objectives and customer base. Don't hesitate to contact us for more information.
