How Private Label Manufacturing Helps Businesses Grow

There are a lot of reasons to venture into private labeling — from taking advantage of expert advice and formulations to wholesale pricing and outsourcing manufacturing. And today, with 85-percent of consumers saying they trust private label branding just as much as any national brand, there’s more incentive than ever to dive into the market with your own product.

New, Lucrative Opportunities with Private Label Manufacturing

With a majority of consumers excited and loyal to their favorite private label products, it shouldn’t come as a surprise that the market is exploding. In fact, the private label market share has reached a whopping 25-percent of unit sales in the United States and is expanding faster than national brands, according to Private Label Manufacturers Association. And according to a Neilson report, even more money lies in premium products commissioned by brands through private label manufacturers.

Private labeling manufacturers are helping businesses expand into new territories that might not have otherwise been realized due to lack of expertise, funds or both. By giving brands creative control of a product that they’re already producing, private label manufacturers are helping diversify the market, create new opportunities and enhance lucrative brand loyalty.

Private Labeling Success Stories

There are a lot of great private labeling success stories out there. But to us, these two from Luxy Hair and Luxottica stick out for how they differently, but successfully, use private label manufacturing to help brands grow and expand into new markets. Let’s take a look.

A Million Dollar Business Built on PLM: Luxy Hair

This YouTube famous and e-commerce-dominating hair extensions brand started with a $20k investment and a private label manufacturer. And in less than a decade, it was grown into an internationally renowned brand and million-dollar business.

Wanting to break into the hair extension market but lacking any real knowledge about the industry and no ties to the sourcing or manufacturing, the founders of Luxyhair, Alex and Mimi Ikonn, decided to partner with a private label manufacturer who could brand customize their hair extensions to fit their new company’s needs. The decision to do so allowed them to carve out a unique place for themselves within this market while not having to put up the capital to fund the entire process. This not only allowed Luxy Hair to keep more profits in their pockets, but reinvest those savings into marketing and expansion that helped make them so popular today.

A Manufacturer Launching World-Famous Brands: Luxottica

A major — if not dominant — player in private label manufacturing for eyewear, Luxottica is trusted by some of the world’s most famous and luxurious brands. This private label manufacturer has helped major fashion companies like Michael Kors, Dolce & Gabbana, Brooks Brothers, Burbury, Chanel and more expand their designs and offerings into eyewear. While many of these global brands might seem like they have the capital to handle the entire manufacturing process, it is much easier and cost-efficient to work with an expert manufacturer like Luxottica that can bring their designs to life. And for companies that are held to high standards, producing products that are made with the highest standards and best materials by established industry experts only adds value to their brand. 

Getting Started With Private Label Manufacturing

Considering pursuing your own jewelry ideas with the help of a private label manufacturer?

Get in touch today to learn how we can help bring your ideas to life and help you take advantage of a lucrative, growing market.