The global CBD market is booming. It is one of the most attractive food supplement/novel food/cosmetics segments to enter. People are using CBD products for every conceivable need. They use it to manage pain, improve mood, boost energy, look beautiful, and even slow down aging.
The possibilities of the CBD market are huge, as it is still a growing segment. It is not expected to peak, at least in the coming years. Each year new people try CBD products, and they like them. However, there are still many people who have never tried CBD products. Thus, significant perspectives for business in this segment.
However, most people who would like to start their business and give up their nine to six jobs are worried that they might not have enough budgets. They are also unsure where to start, as they lack product expertise. Even more, they are unsure where to source the product and how.
Well, if you are one of those, then this article is for you. White label cosmetics is one of the best and budget-friendly ways to start the CBD cosmetics business, testing the waters and gaining experience. One can begin at a shoestring budget. Here we explain the ins and outs of white label cosmetics.
What Are White Label Cosmetics?
These are the cosmetics already available with the manufacturers, complete with all the essential documentation and certifications, minus the label. So, a person looking for a new product or starting a cosmetics business can just choose one of the products, and manufacturers will stick the label as per the client’s requirements and complete the product’s branding.
Since products are already lying ready with the manufacturer, it does not take much time for a manufacturer to supply them. They only need time to pack the product and print the client’s logo. Moreover, they can even deliver small shipments of each product, like just 100 units.
Additionally, the manufacturer would be able to provide all the regulatory documents and quality certificates. Most white labels manufacturers are ready to provide any other information and support needed to start a business. Thus, those wanting to start CBD cosmetic business can begin quickly, with a small budget, and need not worry about documents.
Aren’t They the Same as Private Label Cosmetics?
White label cosmetics are different from private labels, though both these concepts share some traits. Unlike white label cosmetics, private labels are produced as per the client’s requirements. Thus, in private labels, cosmetics are not ready with the manufacturer. Instead, the manufacturer makes them once the client has provided all the requirements and product specifications.
In the case of white-label, the manufacturer provides all the specifications of available products, ready for branding as per the client’s needs. Thus, there is a minute yet significant difference between white and private labels.
Which Businesses Are Suitable for White Label Skin Care Products?
Theoretically, white label skin care products are good for just any kind of business. However, they might be a good choice in specific scenarios.
It may be a way to start a CBD business or enter the skin care segment. It is because starting with white label skin care does not require much product knowledge. One may just choose from the various products offered by the manufacturers. In most cases, manufacturers would only offer products that are already selling well in the market and have a significant segment.
Additionally, launching skin care products does not require allocating massive budgets. It is because white label products are available in small amounts. Therefore, one does not need to buy large batch sizes.
However, it is also an excellent way to enter the market for larger businesses or those well versed with CBD business. Many companies are already selling various CBD products. However, the cosmetics segment is new to them. The white label allows them to get their feet wet with minimum investments of time and resources.
A white label is even an option for those with a considerable CBD cosmetic product range. It can help expand the product range quickly.
Even those producing their CBD products in-house may consider white label cosmetics, as making so many products at a time is challenging.
What Are the Advantages of White Label Cosmetics?
White-label skin care certainly has some advantages over other business models like a private label or in-house manufacturing of products:
- It allows to procure products in low quantities (low MOQ)
- Low initial investment means ease of starting the business
- Greater ability to focus on marketing efforts without worrying about producing product
- No need to have in-house product expertise
- Minimal regulatory issues, as manufacturers would provide all required certifications
- Can order samples, try a product before taking final business decision
- Large producers often make white label products, thus guaranteeing quality
- Most white label products use premium ingredients
- Products on offer are those with proven market
What Are Some of the Disadvantages?
There is no ideal business model in the world, and every business model has its downsides, too. Thus, white labels cosmetics are no exception:
- Difficulty in differentiating the product from competitors, as many others may have a similar kind of products
- Inability to come up with a completely unique product
- Less control over the product specification
- Once the business grows, white-label cosmetics may have higher per-unit costs compared to private label or in-house production
Are White Label Cosmetics Products Right for My Business?
It could be a complex question, and any business should decide that based on its business models, internal strengths, and weaknesses.
If you are a startup or have been in some time in other CBD products, traditional cosmetics, but not in CBD cosmetics, then it is perhaps the best way for you to start and check the depth of the water and gain some experience. It can even serve as an excellent way of doing business in the midterm, as it would not put undue stress on existing resources.
It is also a good way if you do not plan to develop any in-house product expertise in the near future. Many businesses want to focus on marketing and branding without worrying about formulating products. In such a case, it could be a good option, too.
Although it is true that white label manufacturers do not have unique offerings, but it is essential to understand that product differentiation is largely the work of marketing. Thus, one can differentiate even a simple product from competitors with the right strategy. After all, a product is just one of the Ps of marketing, and others are price, place, and promotion.
So, yes, white labels could be the right choice for any kind of business, for a startup or seasoned business people. It is an equally good fit into the business model of small and large companies. Vital is to understand how white label products can help you get into the business or expand the existing business.
If you are unsure how white label cosmetics can help you get started or expand your existing business, contact us, we are always ready to discuss and help you make the right choices.