What is the Difference Between White Label and Private Label Products?
As an industrial manufacturer of wholesale and private label CBD products, Kazmira is familiar with the confusion surrounding this question. Although the terms are very similar, there are a few distinct differences between private label and white label products. As the CBD industry continues to grow at a high rate, extraction companies and manufacturers are distributing their products through a variety of retail channels including both white and private label options.
What Are White Label Products?
White label products are produced by a manufacturer on a large scale and sold to retailers who then add their own label and sell it under a different brand name. These products are generic, meaning the same standard formulations are sold to many different retail brands. If two retailers bought the same white label product from the same manufacturer, the only difference between the two would be the label, the product itself is exactly the same.
What Are Private Label Products?
Private label products are also produced by manufacturers and sold to retailers. However, private label means that the product is not generic and produced for multiple retail outlets, rather it is co-created between the manufacturer and a specific retailer exclusively. Novel products can be developed or formulated under a private label program. Retail brands use this to differentiate their products and cater to their niche audience.
White Label vs. Private Label
For retail businesses who are deciding between the two, it is important to note differences in price. In general, white label products will be cheaper to buy from manufacturers than private label. However, these products are generic, and unless the retailer has a solid customer base or exceptional marketing, it may be difficult to compete against name brands. Private label is more expensive, but much more involved. It is an exclusive contract between a manufacturer and retailer who can reformulate and customize products to fit their brand. Private label products are more differentiated from name brands than white label products are.
Kazmira’s Private Label CBD Program
At Kazmira, we offer a private label program which allows clients to develop custom CBD products and formulations in collaboration with our team. Our selection of popular private label options provides customers with a quick and easy way to choose CBD products for development and integration into their product line.