What is private label? Meaning for product brands
Private label is the most common way retailers, sellers and founders get a product of their own without building a factory.
Definition
Private labelPrivate label is a model in which a manufacturer produces goods that are sold under another company’s brand. The brand owner usually sets or approves the specification, packaging and price, and takes legal responsibility as the party whose name is on the product. The manufacturer stays in the background.
How private label works for a brand owner
In practice you choose a category, brief a manufacturer, approve samples and order a first production run with your name, packaging and barcode. The factory may adapt one of its existing formulas or designs, or build to a specification you supply. What makes it private label is that the finished goods carry your brand and are not sold by the factory under its own name. The brand owner also carries the stock and the sales risk. Nobody buys back what does not sell.
The model sits between two neighbours. A white label product is a catalogue item sold to many buyers with only the label changed. OEM and ODM describe who designed the product. Private label can use either route, which is why the contract matters more than the label you put on the model.
The usual pitfalls are about ownership and responsibility. If the specification, moulds or artwork are not assigned to you in writing, switching factories later can mean starting again. In the EU, whoever sells a product under their own name is generally treated as its manufacturer for product safety purposes, so compliance stays with you even though you never touched the production line.
Supermarket staples, Amazon accessories, salon haircare and corporate merchandise are all typical private label products. Our private label model page and the guide what is private label go further into costs and timelines.
Related terms
White label
A standard product a supplier sells to many buyers, each adding their own brand.
Own brand / store brand
A brand owned by a retailer or distributor and used on products made by other companies.
OEM
A factory produces goods to the buyer’s own design and specification, under the buyer’s brand.
ODM
A factory supplies a product it designed itself, adapted and branded for the buyer.
MOQ
The smallest quantity a supplier will produce or sell in one order, per product or variant.
Frequently asked questions
Is private label the same as white label?
No. White label is a ready-made product sold to many buyers with only the brand changed. Private label is made for one brand owner, usually to a specification that brand owner approves, and is not offered to competitors in the same form.
Who is legally responsible for a private label product?
The brand owner usually is. In the EU and many other markets, the company whose name or trademark is on the product is treated as the manufacturer for safety and labelling duties. This is general information; check the rules for your category and market with a specialist.
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