If you have an interest in selling skincare products or any type of health and beauty products, you can apply to be a distributor for brands that are already established, or you can set up your own private label. A private label means that you have a product that is all your own, and which no one else can distribute unless they have your permission. There are many benefits to a private label skincare brand; note a few of those benefits here, along with some questions you might have, so you can determine what's best for your business.
Build loyal customers
If you have a private label skincare brand, you can build loyal customers who will only buy skincare products from you, since they can't get them anywhere else! If you distribute products from a mass market company or a national brand, your customers might buy them from a cheaper outlet, from the first reseller they see on the internet, another salon or spa and so on. With your own private label, you have customers who won't go anywhere else for the product.
When you're a distributor for another product or skincare line, you may need to pay a distributor's fee, licensing fee, or other such fees, or you may only get a certain percentage of the overall sales price. In turn, this may not be as lucrative and profitable as you assume. However, with your own private label skincare brand, you keep all the money you earn after your costs.
The expense of a private skincare label may also be lower than you expect; for example, you may wonder if you need to have a formula made for your own brand, and may assume this is very costly. This isn't the case, as many private label skincare manufacturers offer stock formulas that you can use for products that will have your own label or brand name.
The way a product is packaged is very important for its overall sales, as customers may get an instant impression about the product from its bottle or tube alone. However, a private label skincare brand allows you to choose packaging that reflects your own company, such as for companies that want to offer eco-friendly or fair trade products. Your packaging can fit the overall brand of another part of your business; for example, if you have a spa where you will sell your skincare products, the packaging can match the theme and tone of that spa so that the spa also builds loyal customers from the skincare product sales.