Private label refers to products manufactured by one company and sold under another company’s brand, allowing retailers and brands to offer their own-branded goods without operating a factory.
Private label refers to products that are manufactured by one company but sold under another company's brand. It allows retailers, e-commerce sellers and brands to offer their own-branded goods without owning or operating a factory. The manufacturer produces the goods; the brand puts its name, design and packaging on them and sells them as its own.
Private label is a cornerstone of modern retail and B2B sourcing, closely linked to OEM and ODM manufacturing models.
In a private-label arrangement, a business sources products from a manufacturer and sells them under its own brand rather than the manufacturer's. The products may be made specifically to the brand's requirements or adapted from a manufacturer's existing range. Either way, the brand controls how the product is presented, priced and marketed.
The two terms are related but distinct. White label products are generic items produced for many sellers, each of whom applies their own brand to essentially the same product. Private label products are typically made or customised for one specific brand, offering more exclusivity and control. In short, white label is "the same product, many brands," while private label is "a brand's own product."
Private-label goods are usually produced through one of two manufacturing models. With OEM, the brand supplies its own design and the factory builds to it. With ODM, the factory supplies an existing design that the brand rebrands. In both cases, the finished goods are sold under the brand's private label. The choice affects exclusivity, cost and speed to market.
Retailers, supermarkets, e-commerce sellers and growing brands all use private label to create own-brand product lines. It is popular in categories such as food, cosmetics, apparel, electronics accessories and household goods, where building a recognisable brand can command better margins than reselling generic products.
Private label lets businesses sell manufacturer-made products under their own brand, building brand equity and controlling margins without operating a factory. Distinct from white label's shared-generic approach, private label offers greater exclusivity, often produced through OEM or ODM models. For retailers and brands sourcing from manufacturers, private label is a powerful way to create differentiated, own-branded product lines.