Benefits of Using a Private Label Shoe Manufacturer

Private label shoes are everywhere nowadays. You can find them in department stores and even on the racks of your local discount store. But what does private label mean and what can it do for your business? In this article, we’ll cover the many benefits of using private label shoe manufacturing and how it can bring your brand to the next level.

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What is Private Label Manufacturing?

There is a wide range of private label products available to retailers, including apparel, accessories, and footwear. All of these products share the fact that they are manufactured by a business (the "private label manufacturer") and then sold under the name or brand of a different retailer. You can actually split branding into three categories: white labeling - when one type of product is created for both brands; co-branding - where two competing brands share the same logo on certain items; private branding - where a single brand owns the product and does not have another company's logo on the item.

What Are the Advantages of Private Labeling?

Using a private label shoe manufacturer has numerous advantages, one of which is that it enables people to enter the industry without having a big marketing budget for their store or brand. Another advantage is that stores are not restricted to working with a single manufacturer and can choose whichever company offers the best service at a reasonable cost. For these reasons and more, an increasing number of retailers are seeking out private label manufacturers so they can offer products that are unique to their brand and stand out from their competitors. Whether you are an individual professional trying to make a name for yourself or a small business owner looking to grow your business, here are the biggest benefits of using a private label manufacturer.

Increased Profits

Private labeling can be highly profitable, and getting started doesn't cost much. By removing the cost of the middle-man, the wholesalers who sell you nationally recognized brands, private labeling helps you enhance your earnings and enables you to sell your own products at a lower price. Simply put, it allows you greater control over all aspects of your company, including sales, marketing, and distribution.

Low Costs and Risks

If you are looking to start a shoe brand and business without taking on too much financial risk, consider using a private label manufacturer. Traditionally speaking, producing your own shoe line can be quite costly and unpredictable. There’s the initial investment in equipment to produce and package the shoes, the materials, the labor costs, and so on. However, with a private label manufacturer, private-label manufacturers will collaborate with you to create smaller orders that allow you to test new product concepts with your customers at a minimal cost to you. Additionally, since there is no need to make a significant upfront investment, there is a lower risk to the overall stability of your business if a new product doesn’t sell as well as you planned.

Stand Out Against Competitors

Private labeled shoe products provide your business with an exclusive, one-of-a-kind identity that makes it easy to recognize. Your private label products can be as distinctive as you and your customers, giving them a shopping experience that they won't find anywhere else. These unique products will only be available from you, and your target consumers will come to you, and you alone, to purchase them.

Adelante’s Sustainable Shoe Manufacturing

You don’t need to manufacture your own products to run a successful online store. With private labeling, you work directly with manufacturers to develop exclusive products for your brand. These items can be shipped to a fulfillment center, your warehouse, or straight to your customers.

Private-label products are a smart option for brands expanding their product catalog for an established audience, launching something new, or creating a passive income stream. And there’s an ever-growing market for them. The Private Label Manufacturers Association reported a record $271 billion in sales in , a 3.9% increase compared to the prior year. This growth suggests rising consumer trust in store brands, creating a prime opportunity for entrepreneurs looking to launch or scale a product line.

In this guide, you’ll learn about the most profitable private-label products to sell and how to start your own private-label brand.

What is a private-label product?

A private-label product is a product made by a third-party manufacturer and sold under your brand name. In this business model, you control every aspect of the product—from specifications and materials to design and packaging—but your manufacturing partner handles the actual creation of the product.

Private label vs. white label

Private label White label Only available from your brand Multiple retailers can sell the same product under different names Unlimited customization Customization is limited to packaging, labels, or tags Longer lead times Shorter lead times Higher cost Lower cost

While private-label products are customized to the brand’s specifications, white-label products are generally pre-made and offer very little customization. They could be sold to multiple retailers, each of whom would put their brand name on it. Because they’re pre-made, white-label products can be put in market faster and potentially at a lower cost than private-label products.

Sometimes the same manufacturer will offer both white labeling and private labeling. For example, a coffee roaster might offer the option to add your logo to its classic French Roast (white labeling) or you can work with that same roaster to create a custom blend (private labeling).