Private Label vs. White Label: What is the Difference & How to Start

For those who have been in the cosmetics business for many years or are considering entering the industry, the terms private label and white label may be both familiar and unfamiliar. Many people even regard the two models as the same thing.

As the diversity of brands and products increases in 2025, consumers will have more choices. Private label refers to products that are custom-made by manufacturers for specific retailers. These products are usually sold under the retailer’s brand, allowing merchants to customize the formula, packaging, and market positioning. In contrast, white label products are standardized products produced by manufacturers. Multiple brands can sell the same product under their names, usually without personalized options.

If you continue reading this article, I will detail the main features of the two and their important similarities and differences. In addition, we will explore the advantages of each brand to help you decide which model is best for your business.

Private Label vs. White Label Examples

Here are a few examples to clarify the difference between these two types of products.

Private Label:

• Sephora Collection
• Target Beauty
• Walmart Beauty
• Kirkland Signature (Costco)

White Label:

• Kendo Holdings – offers a wide range of white label cosmetics, supporting brands such as Marc Jacobs Beauty and Fenty Beauty.
• Cosmetic Solutions – provides white label cosmetics for multiple brands, including skincare and makeup products.
• Generic skincare products are sold at pharmacies.
• Xiran Cosmetics – provides white label solutions for various cosmetics and skincare products.

Private Label Products: Definition and Characteristics

In general, private label products are products that sellers customize with their brand name after signing a contract with the manufacturer.

For example, well-known products like MAC Cosmetics are private label products. Therefore, private label products are goods that are delivered to you directly from the manufacturer. These products are sold under their brand and must be sold as exclusive goods.

There are many types of private label products, and they are sold all over the world. For example, well-known brands like Nike only have reliable partners to deliver their goods. Nike labels the brand, performs quality control, and then trades. Many different clothing, cosmetics, and food companies operate similarly.

Private label products are mainly physical goods, including cosmetics, clothing, household goods, etc., which have their labels, and most people don’t even know the actual source of the product.

White Label Products: Definition and Characteristics

White label products are purchased directly from the manufacturer and sold under their label. In other words, sellers will directly sell goods developed, manufactured, and produced by the manufacturer.

Sellers can rebrand and sell products as their own, but they cannot reset the product specifications and parameters according to their needs. The only things sellers can change are marketing, product packaging, and branding.

Therefore, if sellers have their popular brands, they can mark the products purchased from suppliers or manufacturers as their brands and market and promote new products under that brand. Sellers also do not need to explore new markets or spend a lot of time planning to launch new product lines, so selling white label products can get higher profits and lower costs.

White label products are not limited to physical goods but can also be used for software as a service. However, it is difficult for sellers to find white-label products because the manufacturers of these products are anonymous.

Private Label vs. White Label: The Main Difference

Whether it is a private label or a white label, the product is created by the producer or manufacturer. The seller can:

• Control all marketing and advertising activities;
• Can rename the product;
• The seller does not have any trademark on the goods purchased by the producer.

But in some aspects, there are also key differences between the two:

Private Label vs. White Label: Advantages & Disadvantages

Private Label Advantages:

• Greater control over product quality and branding
• Ability to create a unique market presence
• Potential for higher profit margins due to exclusivity

Private Label Disadvantages:

• Higher manufacturing costs and capital requirements
• Longer timeframes needed for product development
• Increased responsibility for market research and quality assurance

White Label Advantages:

• Lower startup costs and quicker market entry
• Easier expansion of product lines without extensive R&D
• Less risk associated with product development

White Label Disadvantages:

• Highly competitive market with less differentiation
• Limited control over product quality and specifications
• Dependence on suppliers for consistent production quality

How to Start Your Makeup Line

Starting a private label or white label line in cosmetics involves several steps:

Determine Brand Positioning

First, you need to clarify your brand’s positioning, such as popular makeup for young women, natural makeup for professional women, or non-irritating makeup products for sensitive skin.

At the same time, you need to understand the needs and preferences of the target audience to provide a basis for brand positioning and product development.

Target Market Research

In the early stages of brand building, you should conduct more user research to determine the product’s price level, clarify its consumer group, collect user feedback, and reflect differentiation in subtle ways.

Select a Manufacturer

Starting a cosmetics business is a relatively complicated process, especially choosing a cosmetics manufacturer that suits your brand positioning.

To choose the best cosmetics manufacturer for your startup, consider the product type, whether the formula is customized, product quality standards, minimum order quantity, and sufficient budget.

When you find a promising product category, research private label manufacturers in the industry. Check the company’s qualifications, evaluate the factory’s production capabilities, select several manufacturers to compare prices, and request samples.

Productontwikkeling

You need to develop a cosmetics product formula that suits you based on the characteristics of the brand positioning and target audience. This formula needs to take into account factors such as skin quality, makeup effect, age, market demand, and competition.

For companies that choose to produce their brands, please work closely with the cosmetics manufacturer of your choice to customize the formula. For white-label products, please choose existing products that fit your brand image from the products provided by the manufacturer.

Brand and Packaging

Packaging and containers are an essential part of the brand image, and you need to choose packaging and containers that match the brand positioning and the target audience’s preferences.

Design attractive packaging to resonate with the target audience. You can consult Xiran Cosmetics. We have dedicated product designers and the opinions of development professionals, so you can get better advice and guidance.

Brand Value

The social contribution value of the brand, such as when the company develops to a certain level, you can consider social welfare and other aspects.

Marketing Strategy

Handle branding and marketing promotion yourself, or seek help from professionals of your brand.

For example, promote your brand to consumers through channels such as online and social media marketing and highlight your brand’s unique selling proposition.

In the process of creating your own cosmetics brand, you also need to pay attention to the following points:

Understand Relevant Laws and Regulations

• You need to understand local laws and regulations, such as trademark registration and advertising law, to ensure that your behavior complies with legal provisions.

Consider Costs and Budgets

• When you are ready to start creating your brand, consider costs and budgets. Including costs in R&D, production, packaging, marketing, etc., as well as expected benefits and return on investment.

Build Brand Image and Reputation

• It is necessary to build a good brand image and reputation, provide high-quality products and services, and establish a good relationship with consumers.

Continuous Improvement and Innovation

• Pay attention to market trends and changes in user needs, and continuously optimize product formulas and service quality to maintain the brand’s competitiveness and attractiveness.

• The above are the steps for those who want to create their own brands or white-label brands, but they need to be adjusted according to their own situation in the actual operation process.

Samenvatting

Whether to sell white-label products or private label products depends mainly on the product characteristics and the company’s specific situation.

For newcomers to the cosmetics industry for the first time, white label products are usually a good choice to save time and cost, because it is much easier to repackage existing products than to develop new products from scratch.

However, sellers who already have a certain strength need to obtain a reliable and recognized brand. In this case, it is wise to find a professional cosmetics manufacturer to help them create a private label.

Both labels have their advantages and disadvantages. No matter which label you use, Xiran Cosmetica can provide you with support and services to help you succeed.