Understanding Private Label Fashion
Private label fashion is a transformative business strategy that empowers retailers to establish their own brands without the need to design products from scratch. This approach involves the production of items by a manufacturing company, which are then sold under the retailer’s brand name. These items are typically generic style products that can be easily customized with brand logos and label tags.
During the manufacturing process, your brand labels are integrated, transforming the items into an integral part of your company brand. This strategy is a cornerstone of many successful businesses, with the key difference being that in private labelling, you are leveraging the services of another firm, who manufacture and deliver the clothes to you.
The Power of Brand Development
Developing a brand provides you with a competitive edge as a seller. Your name becomes recognized and associated with the design of your garments, setting you apart from non-branded goods. This strategy opens up the possibility of bringing your unique designs to life.
Many retailers sell third-party lines alongside their own range, which naturally boosts potential sales by offering a wider variety. Notably, not everyone prefers to own big label clothing for various reasons, which further underscores the importance of private label fashion.
The Impact of Private Label Apparel
Private label apparel has made significant strides in the fashion industry, with Amazon being a prime example. In July 2018, Amazon sold 5 million items in apparel on Prime Day, leveraging its discounts to promote private label offerings. This success story of private label clothing demonstrates that this manufacturing method is a viable option for businesses of all sizes.
The Benefits of Private Labelling
Private labelling offers a plethora of benefits. A labelled item will always command a higher price than a generic non-labelled piece, even if your brand is not well known. With private label products, once you have covered the manufacturing costs, you have the freedom to set the shelf prices, which generally results in a more significant profit margin.
Branding is a significant advantage, as it gives you an identity and a platform for growth. All brands start small, but those that rise to the top often employ private labelling methods in their early stages. A generic retailer will not find the same growth potential. You can add new garments to the range, but because they fall under your brand, they carry more weight than adding non-branded items.
Risks Associated with Private Label Garments
Like any business venture, private labelling comes with its own set of risks. The quality of the items being made on your behalf is a critical consideration. You need to ensure that you are working with a reputable manufacturer to avoid associating your name with substandard or poor-quality products.
Additionally, you need to have a clear understanding of timescales, lead times, and reliability before you commit. You also need to consider any legal obligations you have to fulfil, such as trading rules, trademarks, and patents.
Finding the Right Private Label Manufacturers
Finding a private label manufacturer may seem daunting, but with the right approach, it can be a rewarding process. Start by looking for a manufacturer with experience in your product. You want to see evidence that they can produce garments with correct sizing and to a high standard.
Discuss issues such as minimum order quantities, discounts for bulk orders, shipping costs, timescales, liabilities, and responsibilities. Ask to see examples of quality and do some research online. Look for a manufacturer with a low defect rate and a robust quality control system.
Conclusion
Private labelling offers a step up from reselling and provides an opportunity to establish your brand. It requires careful consideration and thorough research, but the benefits often outweigh the risks. By learning as much as you can, asking the rightquestions, and checking the experiences of others when choosing a manufacturer, you can leverage private labelling to take your business to new heights.
