Private labeling is the business model of selling products made by a third‑party manufacturer under your own brand name. Rather than owning factories or production lines, private‑label entrepreneurs provide detailed specifications on quality, ingredients and packaging, then market the finished goods as exclusive items. By controlling the design and branding, retailers can offer unique products that differentiate them from national brands while still outsourcing manufacturing.
Private labeling differs from white labeling. In a private‑label arrangement, the product is custom‑designed for a single retailer, whereas white‑label goods are generic items made in bulk and sold to multiple retailers. For example, a private‑label cookie brand creates its own recipe, while a white‑label supplier sells identical cookies to several stores that each add their own packaging. The exclusivity of private‑label lines allows retailers to build brand loyalty and command higher margins.
The practice began in the retail sector, where supermarket chains launched store brands to compete with national names. Today, private label spans countless industries – from electronics and apparel to beauty, food and household goods. Leading examples include Amazon Basics and ALDI’s Specially Selected ranges.
