The term private label is quite commonly used in the clothing industry, but many people are unaware of what private label really stands for. Over the years, the meaning of the term has been diluted, or you may say it has been expanded. To simplify the whole thing, private label can be divided into three categories depending on who is signing the check for the products.
The three types of private label include:
1) Retailers – internal product development 2) Retailers – external product development 3) Organizations and corporations
To understand the concept of private label clothing, you would first need to know about these three categories of private label.
Below is a brief introduction into these three private label types:
Retailers – Internal product development:
Many retailers prefer getting private label clothing from their manufacturers. This tactic helps the retailers create their own brand identity. Even though they are getting their clothing items manufactured from elsewhere, the items are being sold under the retailer’s brand. Private label clothing often helps retailers in increasing their profit margins. However, not every clothing manufacturer provides private label clothing. If you are a retailer, looking forward to getting private label clothing, make sure you find a trusted private label clothing wholesaler first.
Retail – External product development:
In this case, the retail company may hire private label clothing suppliers for exclusive deals on certain products. Typically, the company has to choose from a given style, but it is not essentially like choosing from a catalog of products. In this case, the clothing manufacturer may create millions pieces of the same product. But for a private label contract, they will make some adjustments in the designs and materials to make the items stand out with its individuality. In some cases, the retailer may also get customization features where they get to choose the materials and deigns.
Organizations and corporations:
This is the most common type of private label clothing. In this case, an organization or company purchases wholesale private label clothing from a clothing manufacturer. A number of clothing manufacturers make jackets, shirts, slacks, polo's and trousers and various other clothing items under different categories. These clothing manufacturers are hired by other clothing retailers or organizations on contractual basis. The manufacturer provides a catalog from which the organization has to select products. But in this case, the customer will have the option of having its logo or brand name embroidered or imprinted on the clothing items.