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What is Private Label Clothing?

Published on
September 29, 2023

Fashion Designer and Content Creator. Daniela leads the social media operations at GAT Fashion Lab

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What is Private Label Clothing?



Private Label, or White Label, is a wholesale clothing manufacturing service characterized by the use of predefined designs. It allows the customer, typically a brand, to add personalized details such as labels, tags, prints, embroideries, and more.

Initially, private label clothing refers to the creation of different products by a manufacturer, who allows customers to purchase units and customize them with their own brand.

Unlike items in the gray market, these products generally do not have any specific brand associated with them; they were simply part of Company X's collection.

There are various types of private label products, including garments, accessories, and footwear. A common example could be a blouse produced by Company A and subsequently marketed under Company B's brand.

This represents an example of Original Equipment Manufacturing (OEM). The clothing supplier can offer a variety of customization options, but it is not mandatory to start designing the products from scratch.

This strategy allows companies to leverage the expertise and production capabilities of another entity while having the opportunity to market their products under their own brand.

This is particularly beneficial for smaller or newly established companies that may lack the resources to conceive and manufacture their own clothing lines. At GAT fashion lab, we offer private label services. For more information, click here.


Differences between private label clothing and white label clothing?

The main distinction between private label and white label clothing lies in brand ownership. When a private label company manufactures garments for another company, the latter owns the brand, while the white label clothing company simply acts as a supplier.

In contrast, when a white label clothing company markets unbranded clothing, the retailer acquiring these garments has the ability to add its own brand and thus becomes the owner of the brand.

Another difference is that private label companies produce garments for other companies, which subsequently market them under their own identity. On the other hand, white label clothing companies supply branded garments to retailers, who add their own labels and distinctive logos.

The most suitable choice for your company will vary depending on your specific requirements and goals. If your goal is to reduce design and production costs, private label clothing could be the answer.

Conversely, if your main concern is maintaining control of your brand and highlighting your store's uniqueness, you might consider white label clothing as a more suitable alternative.


Benefits of Private Label Clothing

Companies, both large and small, enjoy numerous benefits with private label clothing:

- Customer loyalty:

Having absolute control over the image and product offerings allows you to build a loyal customer base that returns to your store or website.

 - Cost-effectiveness:

Collaborating with private label manufacturers can result in wholesale order discounts, reducing costs and offering high-quality garments at more accessible prices.

- Higher profit margins:

As the sole seller of the brand, you can set retail prices and earn higher profits for each item sold.

- Better quality control:

Supervising every stage of the production process ensures that each garment meets high-quality standards and is manufactured using modern technologies and techniques.

- Flexibility:

You can design products to your specifications, selecting fabrics, colors, styles, sizes, and deciding on the frequency of collection releases and inventory to maintain.

- Improved customer service:

Establishing a close relationship with manufacturers facilitates problem resolution and streamlines processes for exchanges or returns.

- Competitive advantage:

Your brand sets you apart from the competition and helps attract new customers, build a reputation for quality, and compete with larger companies.

- Increased sales:

The exclusivity of your products can attract customers who consider them unique, and with price control, you can increase profits.

- Scalability:

Private label clothing allows you to expand your business without significant investments in equipment or facilities, accelerating your growth.

To learn more about these benefits, click here.


Advantages and disadvantages of private label clothing




A. What are the advantages of opting for private label?

- Reduced minimum order quantities (MOQ):

Private label manufacturers typically allow smaller orders compared to wholesalers. This provides more flexibility in your investment; instead of buying 200 units of a garment to resell, you can purchase several models with an order of 20 units, expanding your product line.

- Assured quality:

Opting for private label increases the chances of establishing connections with companies that offer high-quality clothing in the industry.

- Higher profit margins:

This business approach offers slightly higher profit margins and the opportunity for the brand to stand out in the market. Due to lower production costs compared to in-house manufacturing, profitability is higher.

- Price flexibility:

By purchasing products at the manufacturer's catalog price without wholesale distributor commissions, you have more margin to adjust retail prices.

- Complete customization:

Customizing items, from color and design to fabric and the ability to add private brand labels to each garment, allows you to stand out in a saturated market compared to buying and marketing clothing from a wholesaler.

- Customer satisfaction:

You have the ability to make changes to improve customer satisfaction based on feedback and issues raised by previous customers.

- Variety of brands:

There are no limitations to a single business model when establishing the brand. Many retailers combine basic products from wholesalers with more customized options from private label manufacturers.

- Wide range of garments:

Private label manufacturers produce a wide variety of garments, from everyday clothing to sportswear. In fact, many clothing lines available on Amazon come from private label manufacturers.


B. What are the disadvantages of opting for private label?

- Legal implications:

Assuming the brand of a product carries full responsibility. If what the buyer sells turns out to be of mediocre quality or defective, the responsibility falls on them. To avoid this, it must be specified in a prior contract with the manufacturer that responsibility lies with them before starting production.

- Requires upfront investment:

The only drawback of private label is the requirement to settle/buy inventory in advance, with uncertainty about how much the buyer will be able to sell.

- Communication challenges:

Working with manufacturers can create communication problems, sometimes resulting in delays and misunderstandings about products in progress. Additionally, establishing a personal relationship with collaborators becomes more complicated.

- Perception of lower quality:

Some consumers prefer products made in their own country, which could lead to a loss of customers when working with foreign manufacturers. It will be crucial to determine from the beginning how much transparency the manufacturer wants to have with its target audience.

- Slower and more expensive shipping:

When collaborating with foreign manufacturers, shipping times will naturally be longer, and costs higher compared to domestic suppliers.

To learn more about the advantages and disadvantages, click here.


How to obtain private label clothing products?



You can start by locating an experienced manufacturer for the type of clothing you want to produce. Although this may seem obvious, it is important to ensure outstanding quality at reasonable rates.

Compare costs and request multiple quotes before making a determination. Request product samples for examination before making a purchase.

Address minimum order quantity requirements, deadlines, shipping costs, responsibilities, and duties. There are various sources to find a manufacturer, and Google is an excellent starting point.

There are multiple ways to discover private label companies. You can use an intermediary, locate apparel producers that offer this service, or even research American manufacturers on platforms like Alibaba.

Private label retailers should provide label customization solutions, including neck labels, hang tags, and finishing services.

The offering of design services, such as graphic design, embroidery, and screen printing techniques, is also a crucial factor when searching for a private label manufacturer.

Steps to create your own brand with private label


The process involves four key stages:

1. Define the type of private label:

In the first step, choose the type of clothing you want to manufacture. Since there are numerous clothing styles, it's essential to select something that aligns with your brand's essence.

Begin by conducting market research to identify popular trends in the industry. Additionally, consider the profile of your target audience. What type of clothing do they typically wear? What colors appeal to them? What styles do they prefer?

Understanding your audience will facilitate the search for a private label product manufacturer.

2. Design and establish your brand:

The next stage involves designing and developing your brand identity, including creating a logo, slogan, and other visual elements that represent your brand.

If you lack design skills, consider hiring a professional to help create a professional and distinctive brand identity.

It's crucial to maintain brand consistency across all marketing materials, from the website to social media profiles and product packaging. This will make it easier for customers to recognize and remember your brand. Also, ensure that the brand identity reflects the type of clothing you will be selling.

3. Find a private label supplier:

Once you've determined what type of clothing you want to market and have established your brand, it's time to find a private label supplier.

There are various options available, so dedicating time to select the right manufacturer is important.

When choosing a private label supplier, consider factors such as their industry experience, specialization in types of clothing, minimum order requirements, product quality, response time, and pricing.

4. Set prices for the initial production order:

Once you've found a supplier, it's time to set prices for the initial production order. This includes defining the number of styles, color options, and the minimum order required to meet the supplier's requirements.

By setting prices in advance, you can avoid surprises or hidden costs in the future. Starting your own private label clothing line is an excellent way to enter the fashion industry without making a significant upfront investment.

By following these four steps, you can create a brand with a private label service. For more in-depth steps, click here.

At GAT fashion lab, we provide private label services with various types of garments available for modification and customization according to your needs. Learn more about us and our services at https://www.gat.com.co/.

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