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What Is Private Label?

June 3, 2024

White label product manufacturing

A private label refers to a product sold under one company’s brand that was manufactured by another company. This involves a unique manufacturing process that will not be found being used by any other companies offering the same or a similar product. For example, a golfing store will not be able to sell the same golf grips as a company that sells private label exclusive golf grips using a custom manufacturing process, as that manufacturing process will not be able to be found elsewhere.  


Private Label Products

Virtually anything sold by a retailer can be considered a private label product when the seller outsources custom product manufacturing to another company. Businesses looking for a way to stand out from their competitors often use private label products to do so. It just requires a company to find a reliable custom product manufacturer at an affordable price point for what they are looking for. 

IPS offers solutions for businesses interested in private label products at an affordable price. We work with manufacturing facilities overseas in China, Taiwan, and Vietnam to lower the cost compared to manufacturing facilities in the U.S. IPS is a one-stop-shop solution, working with businesses to design, prototype, engineer, and manufacture custom private label products.  


Benefits of Private Label Products

Need an edge over your competitors? Private label products are an effective solution for businesses in a competitive market. It helps your products stand out amongst a saturated or competitive market, where there are plenty of products offered that look or function similar to yours. In turn, this leads to higher profitability. The flexibility and innovation opportunities for private label products are only limited by your business goals and your visions for the future of your products. 



Any market can get tough when there are strong competitors. It’s hard to compete with reputable businesses that have higher profit margins, seasoned customer brand loyalty, and an overall bigger budget to spend on marketing and product manufacturing. But, private labels are a way for smaller or newer businesses to get into the big leagues. 

The goal of any custom product is to suit the needs of your target customers. Unlike generic products, a private label product offers something new that cannot be found being sold by any other company in that market. Outsourcing to a custom product manufacturer helps reduce the cost of manufacturing that product, allowing your business to undercut competitor pricing. 



A customer centric product prioritizes the needs of your target customers. Private label products are an ideal way to promote customer centricity by offering a custom manufacturing product that addresses everything your customers are looking for. This leads to higher profitability against competitors only offering generic products or more expensive products.  


Flexibility in Product Development

Private label products are able to adapt in a way that products, such as dropshipping products, cannot. Fluctuation happens in any market. It can be due to inflation, changes in customer needs, or other factors outside of your business’s control. The best thing your business can do is adapt to the situations. With custom product manufacturing, the manufacturing process or products being manufactured can change at any moment, depending on what your business needs. This flexibility allows you to stay on top of ever-evolving markets easier. 

In addition, flexibility in product development allows you to continue addressing customer needs. Nurturing customer loyalty not only leads to return customers but also improves your brand’s reputation, which can lead to new customers. If, over time, your customer needs demand more than your current product offers, private label manufacturing gives you the flexibility to adapt. 


Innovation Opportunities

Innovation is limitless when it comes to custom manufacturing. Private label products are only limited based on your vision for both your company and the product. IPS works with companies to manufacture innovative products that address all your product line needs. IPS has worked with businesses that want to manufacture a custom crowdfund or startup product that has never been on the market before. Other businesses may want to use an original manufacturing process to develop their product. Regardless of your needs, our expert team at IPS is ready to help. 


White Label vs. Private Label

White label and private label products are often confused as they both require the use of a third-party manufacturer. Private labels offer a higher level of customization in the designing and manufacturing of a product. Businesses have better capability to customize products to their brand messaging and business goals. While white label manufacturing may be able to dictate small variations or changes to a product, such as size and coloring, private label offers much more. With private labels, companies have the ability to fully modify the manufacturing process to suit their needs, manufacturing products using an original design or manufacturing process not used by any other company. 


Private Label Manufacturing

Is your business interested in product manufacturing? IPS is a one-stop-shop solution serving businesses who are ready to gain a competitive edge over their market. Our team of experts designs, prototypes, engineers, and manufactures products that suit your business needs at our facilities overseas. We navigate customs for you to get your products to the states once they are ready, so you can focus on selling to your customers. 

If you are ready to take the next step in manufacturing private label products, reach out to our team

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