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The Pros of Private Label

By: Lisa Doyle
Posted: August 3, 2010, from the August 2010 issue of GCI Magazine.

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Q: Will the products be high-quality?

A: In a word, yes. Today’s private label manufacturers have top-notch research and development scientists with technology that rivals the large brands creating products in house. “The biggest trends continue to be in antiaging products, men’s lines and babies’ lines, but we see a huge untapped potential in creating both natural preservative systems and high performance complexes containing new and unique raw materials,” says Prakash Purohit, president of Naturich Labs, Inc. in Garland, Texas. “As a commitment to our future, we opened a new state-of-the-art R&D lab in India and our own microlab here in Texas just to further develop these latest demands of the industry.”

Gill agrees that the R&D-focused setup of a private label manufacturer gives them several advantages. “Private label manufacturers tend to have better access to advanced and cutting-edge technologies and information because their focus is more centralized to product development and research, rather than just finished goods sales,” notes Gill. “Not to mention, the volumes [of ingredients used by] private label manufacturers tend to be higher, which attracts more innovative raw material suppliers.”

Moreover, the products made by private label manufacturers aren’t just found in supermarkets or drugstores. “Our products in the U.S. are retailed in places such as high-end salons and spas, Sephora, Ulta and department stores such as Barneys and Saks Fifth Avenue,” adds Purohit.

Of course, it’s essential to do your homework first to ensure the manufacturer is reputable and has a history of success. “Your product line should not only have a good marketing story, but the evidence of performance to support it,” says Medlock. “Remember, you are not ‘just’ carrying a line—this is your brand.”