The private label industry is growing at a fast pace. A 32% growth was registered in India in Q3 2020.
In addition, the global market for white label products is expanding.
Several reasons, including the increase in purchase power and growth in the penetration of online grocery stores, can be attributed to it.
Opportunities During Covid-19
Covid-19 pandemic dramatically increased the demand for hygiene products such as hand sanitizers and hand washes. The critical fact is that the market was not ready for satiating this demand.
Every kind of organization and institution wanted to stock up on these products. The households sector also generated a similar demand.
While the revenue of many other industries declined amid pandemics, new opportunities sprung up for hygiene products.
What to Look For in a Supplier?
Private labeling is a lot about formulations. A supplier must provide consistent quality with utmost reliable services. Transparent and trusted communication is the first thing a supplier can offer.
The sustainability and agility of the supply chain are other essential aspects. The supplier should be able to continue the supply in adverse market conditions. Also, the supply shouldn’t be affected if you plan to scale the business.
Other important things in manufacturing cosmetic and beauty products are manufacturing techniques, sourcing, strong supplier network, supply, ethical business practices and business models.
One should always get into the details of these factors before entering into a contract with private label cosmetic manufacturers and suppliers.
India, a Hub in the Future?
India can become a hub of private labeling where the products can be exported. Conventionally, we have relied on foreign companies for packaging, manufacturing, and other procedures.
With the ‘make in India’ initiatives, more companies are coming into these spaces. The competitiveness is going to increase, which will bring down the prices. This will enhance the share of Indian companies in private label manufacturing.
Also, the retailers understand the impact of packaging on consumers. The right kind of labeling and the correct information can make India a hub of Private label products.
Research Work for a Startup
A startup has to do a lot of research and planning. It starts with researching consumer behaviors, market demographics, sustainable supply, and the expected impact of the product.
The next is competition benchmarking, where we decide our differentiation from the existing competition. Besides the current market influencing factors, they also have to research the product’s market positioning after five years.
The aim is to remain profitable in the coming many more years. Finally, startups have to make an innovation plan to introduce different products or ingredients from time to time to stay relevant in the market.
How Should We Do It?
Consumer education is the first step for any startup where you educate the consumers about the need and utility of the product. The competition is very high, and affordability is the key.
Creating the right supply chain can bring the desired pricing for the products. Marketing will play a key role in increasing the sale of any new product. Above all, the consumer is the king, and consumer behavior should always be considered.
As a private label cosmetic manufacturer, we understand the importance of sustainability and clean practices. We are one of the leading suppliers of personal label products that offer transparent communication and changes in the formulations to derive the desired product. We are also into cosmetic contract manufacturing.
Contact us today to get the best white label products at affordable rates.