By Arthur Huang

Saving on your investments should be the first and foremost priority for your business when introducing a product in the market. Tons of money is spent researching and developing the product, setting up manufacturing units, hiring workers to manage such units. You can save all this money by hiring a company that takes care of all these activities at an effective price.


A company’s private label product is one in which a third party controls all its specs, but it is sold under the brand name of the company. These products are most prevalent in grooming and personal care products, pet food and accessories, food and beverage, and clothing.


Private label products are adaptable to change in consumer behavior in the market. When the retailers rely on suppliers to offer them products, then the changes required according to the market demand are slow. However, label manufacturers are more prompt in response to changes.

In the case of label products, the retailers have more control over overproduction. They can instruct the label manufacturers to make the products with specific features like color, packaging, etc.

Since retailers can instruct the private label manufacturers, they have control over the production fully. So, they can fix the production costs to increase their profit margin.

With private labeling, the retailers can have control over the branding of the products. Since it is important for the consumers to develop brand loyalty, the retailers pay extra attention to the packaging and quality of products. The labeled products can be customized according to the brand value of the product.


Usually, small businesses make use of contract manufacturing. It involves hiring a company and using their services to manufacture the products of the company. This saves the cost of the small business in setting up a factory or production unit. The hired company focuses on the production, packaging, and even delivery of the products in some cases, while the hiring company focuses on the marketing of the product.


Contract manufacturing is useful for saving production costs of the company. They need not raise huge capital to set up factory or production units. Also, some companies use contract manufacturing services in countries where wages are low.

Besides saving the cost of setting up production units, the company also saves hiring managers and workers for their production units. Also, they save time to focus on other aspects of the business like marketing and selling.

Contract manufacturing makes it easy for companies to introduce their products inside the country and even lets them take the ambitious leap of expanding in neighboring countries.


OEM stands for Original Equipment Manufacturing. In this type of manufacturing, the products are fully invented and designed by a company, but the manufacturing of the product is handled by some other company that bears a license for manufacturing that product. OEM provides a high level of uniqueness to a product that differentiates it from the rest of its products.

ODM stands for Original Design manufacturing. They are also called private labeling. In this type of manufacturing, the product’s company does not need to spend any money on inventing the design of the product or set up production units. They can just choose from the list of designs in the catalog of the company they hire and leave all the production-related work to the hired company.

If you want to avail all the services mentioned above in one place, then check out the website of Guangzhou Olehana Biotechnology Co Ltd. at They are a globally recognized Private Label Cosmetics Manufacturer that provides high-quality private label cosmetics and skincare products at an affordable price.

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