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Private label clothing manufacturing is a business model where products, in this case, clothing, is purchased and branded under your own company’s name. The manufacturer that provides the clothing may provide varying levels of customisation, however, there won’t be a need to design the goods from scratch. The manufacturer is using its own supplies to produce the products but then labelling it with the buyers’ own branding.
Private label clothing manufacturing is an appealing business model because developing a brand gives you weight as a seller, and your business can scale as your brand becomes known and associated with the design of your garments. It allows you to stand apart from non-branded goods, a big plus in such a crowded marketplace.
Benefits of Private Label Fashion Manufacturing
Many private label clothing manufacturers typically allow you to order items in smaller quantities than wholesalers. This means you can spread your investment around. Instead of purchasing 200 of one garment for resale, you can purchase several units of 20, allowing for a more well-rounded product line.
Purchasing private label increases your odds of connecting with a company that provides quality apparel in your niche.
Higher profit margins:
This business model has slightly higher profit margins and the ability for brands to separate themselves from the competition. As there are lower manufacturing costs, compared to producing your own products, this also creates higher profitability.
Flexibility in prices:
As you are purchasing these items at the manufacturer’s listed price, without paying a fee to a wholesale distributor, this can allow for greater flexibility in your retail price.
An attractive aspect of private label is the control you can have with regard to so many of the decisions made in your business.
The items can be personalised from colour to cut to fabric, and you can have your own brand’s label sewn directly onto each garment. This contrasts with ordering clothing from a wholesaler and marketing it yourself. For someone with an interest in a particular niche, this can make it easier to stand out in an already crowded marketplace.
You can make changes allowing you to have more control over customer satisfaction. If your customer feedback mentions particular issues with a particular line, you can address those before you place your next order with the manufacturer.
It isn’t necessary to choose between only one or the other business model when starting your brand. Many large online clothing retailers choose to stock their stores with a combination of staples sourced from wholesalers and more customised options purchased from a private label clothing manufacturer.
Range of apparel:
Private label manufacturers produce a large range of apparel, from maternity clothing to athletic wear. In fact, many of the clothing lines that are sold on the likes of Amazon are sourced from private label companies.