PRIVATE LABEL

WHY A PRIVATE LABEL & A IN-HOUSE PRODUCTION?

Many clothing retailers has it’s own private labels today. Some known e-com companies are ASOS, Zalando, NA-KD and Nelly.com. So what is required to start a production? Well, first and foremost your company need to working with companies or people with solid knowledge within the production. From sourcing to tech packs, etc.

What are the advantages?

These are two of the leading factors for success.

  • The control of profitability
    When you have control over production costs and pricing, you can therefore control the level of profitability its products provide.
  • Sustainability
    Sustainable Sourcing is the integration of social, ethical and environmental performance factors into the process of selecting suppliers.

Are there any disadvantages?

  • Manufacturer dependency.
    Is one of the key factors since production of your product line is in the hands of a manufacturer. It’s important to partner with well-established companies to make sure that the whole line is secured. What will happen if your main supplier would immediately stop delivering?

These are some of the common questions that usually comes up when companies are thinking about starting a in-house production and a private label.


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