White label and private label goods are experiencing huge growth according to trade association BCMPA, with demand going beyond what you might expect as a direct result of Covid-19.
White label goods are standard products manufactured by a third party, and sold by companies and retailers with their own branding, while private label products differ slightly in that they are manufactured for the customer to a bespoke formulation.
BCMPA, the association for contract manufacturing, packing, fulfilment and logistics, has reported a 75% increase in enquiries during lockdown from companies and entrepreneurs across the UK and internationally looking for white and private label goods.
While part of the increase in enquiries has been from companies wanting to offer products such as hand sanitiser quickly to meet demand from the current coronavirus pandemic, BCMPA added that there has also been significant growth in a wide range of other products, from cornflakes and granola, to men’s grooming products and domestic cleaning items.
Rather, BCMPA attributes the growth in white and private label to several factors, including the emergence of smaller brands and marketeers who have identified opportunities for new products, and are often using e-commerce and online stores to bring them straight to market.
BCMPA chief executive Rodney Steel commented, ‘With white and private label goods, a single company does not have to go through the entire development process to create a new product, and instead can focus on its core competences of marketing and selling it.
‘With white label goods in particular, the product is already tried and tested; this helps to keep costs down and avoid any unknowns or pitfalls that can sometimes occur during development.’
White and private label services are already featured on the BCMPA website, but the terms will shortly be added to the portal’s search facility. Many BCMPA members are also able to provide an end-to-end service to brand owners, not only manufacturing and packing the products, but also dispatching the individual items direct to consumers as part of their fulfilment and logistics offering.
Mr Steel concluded, ‘Outsourcing allows white and private label goods to be launched extremely quickly, leaving entrepreneurs to focus on developing their brand and sales channels. We therefore anticipate growth in demand to continue for these products, which is why the BCMPA membership is constantly adapting its offer to meet the latest requirements.’
