How do You feel about Private labelling?

cosmetics_private_labelling

I found this blog post on my desktop last week that I wrote way back at the beginning of 2012 and for some reason didn't post it. So I thought I would post it now as it is still relevant and quite an interesting topic I feel.

For me private labelling has been something I have known about for quite some time but I just don't know what to make of it as the beauty brands that opt for the service don't make it clear so I never who which brands do use it, which makes me feel a bit indifferent about it all. But I don't think anyone really wants to purchase products from a brand that doesn't create their own cosmetics and basically picks them out of a catalogue - I know for me that totally wipes out the creativity of that brand!

What is Private Labelling?
For all that don't know what private labelling is, it is basically when companies produce unbranded products that then get bought by brands that put their of brand name and product name on it. Some brands will package the products themselves, some pay the company to do it for them, sometimes brands will even pay the private label to do it all - so they provide the actual cosmetics, the packaging and then place the brands requested label/branding on them. Then that specific cosmetic brand will release it as a new product. 

If you think about it you can easily spot some private label beauty products - ever used hotel toiletries with the logo of the hotel on it? Yep, that is private labelling. Ever purchased a magazine with free makeup that has the logo of that magazine/no logo on it? Again, private labelling. Salons and spa also use private labelling and also airline, but the list does go on and on. In these sectors it is the only way as hotels, magazines etc can't be going through the length process of making a skincare product as each test to make sure it's safe and within certain regulations takes money and time. 

However this is another side to it which isn't so great for us- the consumers. Lets say for example next year the new type of product is tinted eyebrow gels. So a high street brand instead of developing their own, purchase a huge order with a private labelling company and put their own brand name on it. They then market the product and sell it for £6.50. Then a high end or more expensive cosmetic brand come along to the same private labelling company and purchase a huge order of the same product at the exact same price, they put then own brand logo on it, maybe even use their own packaging to make it look more expensive and then they charge £12.00 for it. So you have two identical products that perform in exactly the same way but at totally different prices. A possible example of this can be seen on British Beauty Blogger here. This can of course also happen with food and clothing.

A few well known cosmetics brands that have used private labelling in the past (I cannot say for certain they do now) are - Lime Crime, Daniel Sandler, Jelly Pong Pong and Pixi.

Which takes me on to how brands that use private labelling would be viewed if we were aware of this practice. Does this make them glorified re-packagers? Does it mean they are lying to us if they talk about why they created X product? Are they less creative as a brand? Also when it comes to a makeup line that has been 'created' by a makeup artist surely they know we are all going to assume these products have been designed to be the best by the makeup artist based on their vast knowledge of products and experience... so again, are they indirectly lying to us by doing this?

Celebrity Products
The other side to cosmetic private labelling is 'celebrity' products... now celebrities perfumes are fine, we all know the celebrity has a meeting or maybe even a few (imagine that!) and has a sniff of a few different notes and selects ones they like - so they do have an input in the scent. But imagine a celebrity that is coming out with a tanning range or range of makeup products for Christmas... the amount of people they would need to employ/pay to create a totally unique range of products would be huge. So they go to a private labelling company, select the products they want to use, they then design the packaging, have their logo put onto the products and there you have it - Celebrity X's amazing new range! Yes, ALL celebrities do it... it's impossible for them not to do it as like I mentioned their costings would be huge otherwise. 
  
I personally feel Private Labelling should be a service for corporate businesses such as hotels and all beauty brands such be manufacturing their own products ! 

However if for whatever reason a brand does use private labelling (christmas gift sets, celebity products) then they could disclosure this on the label so that we are aware of it. 

 How do you feel about Private Labelling?

Fee xo. 

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Comments (26)

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Hi Fee,

Wow, I never knew this happened. Thank you for sharing! I agree with you completely, especially when I've seen the celebrity make up sets everywhere for Christmas. It needs to be disclosed on the packaging so people are aware definitely otherwise doesn't that make it false advertising?

Thanks again for sharing, I found this super interesting.
Lots of love, Jayde-Paris xxxxx
I've known about PL for a while now too, first hearing about it from Limecrime back in the day using TKB Trading products and just putting her own label on it. She's always been quite a dishonest person, she used to make clothes and made them really poorly and would use really appalling behaviour when any of her customers complained about it and for these reasons, I've never wanted to buy Limecrime.

I'm also really aware of it in the fashion industry, especially in terms of high-street brands. Topshop and Primark use some of the exact same leggings, same factory, same everything but obviously Topshop charge a higher mark-up. I haven't shopped at Topshop for years. I do most of my shopping on eBay from HK suppliers because it's the same product, but much less expensive with a majority of clothing being under £20!

However, I know a lot of people don't have the time to "shop around" which is where Topshop etc comes in, they capitalize on the convenience of picking clothes up in your local Topshop while on your lunch break. It's clever, businesses take advantage of human psychology like this!

Great post, Fee!
Great post, so informative and it's really important to make people aware this happens if they don't already know. I recently found out a very hyped up Irish brand is completely private labled. It's really sad I think because they act as though they're an all Irish, original brand that are growing in the market alongside big brands such as MAC or whatever. They buy their stuff off a website for like €3 and sell them on for a crazy €16+ depending on what the product is. I know I was shocked when I heard this and I won't be shopping there anymore.
http://annettibus.blogspot.ie/
2 replies · active 626 weeks ago
To be honest it's just unethical of beauty companies to take part in this and sell products off at unfair prices.
But then again I suppose most beauty brands didn't get to where they are by being "fair".

Emily x - prettypleaseprettyplease.blogspot.com
Natalie Harrison's avatar

Natalie Harrison · 626 weeks ago

This has opened my eyes, bitch slap cosmetics and lime crime have the same lipstick tube, and if you pair them up against mac, they are the same size just in a different colour!

ByGUMM I feel like I've been duped.

Kewteepye
xx
Thanks for the informative post. I had no idea about Private Labeling but do feel that charging so much for consumers is a little...un-ethical? Agreed that hotel and corporate use is fine, but as a private consumer, on a budget, I'd rather pay for the real price than the jacked up price.
Wow, this was a really good post. I didn't know how frequently this happens. I knew that there was a lot of overlap between high end and drugstore makeup. I didn't realize that they went through a third party producer though. It seems a little unfair. I understand when hotels do it. Its different for companies who are in the makeup business.
www.laurenzie.com
This is really interesting - I have thought about this a few times but never realised how obvious it can be! I think it is a little unfair from a consumer point of view but then some companies just want to make a profit at the end of the day... I'm not saying its OK but I think would be very difficult to change. Would be interesting to know which other companies do this.

Millie
xxx
This is really interesting - I have thought about this a few times but never realised how obvious it can be! I think it is a little unfair from a consumer point of view but then some companies just want to make a profit at the end of the day... I'm not saying its OK but I think would be very difficult to change. Would be interesting to know which other companies do this.
I completely agree. I feel like Lime Crime has lately been offering incentives for beauty bloggers and gurus to put distance on the whole issue, but I still don't trust the brand itself. I don't care if a company changes it's formulation or sources at this point, the trust is lost. I personally try to use cruelty-free products but in some case companies say one thing and then make questionable (ethical) decisions. Frankly, it can all be a bit disheartening/frustrating.
Wow such an interesting post, i usually see myself as a pretty "aware" person but i didnt know about this, i usually think most things are ok i.e dodgy market, green washing etc but i actually don't think this is ok. As you said, celebs, hotels etc- it makes sense , but for a beauty brand- definitely not. Why are they even a beauty brand if they do not have the means nor motivation to come up with their own products? Not good! I enjoyed this post so much i feel like writing a "blog post i like", just to include urs .. :) very interesting.
Wow i never new this went on.... Thanks fee great post!
Also can you follow my blog because i have yours?

<a&gt <a href="http://;www.beautyaddictionxo.blogspot.co.uk" target="_blank">;www.beautyaddictionxo.blogspot.co.uk
This actually happens quite a lot! I often check Alibaba for my partners business & if you look under skincare & beauty products you will find many soaps & other made up beauty products that can be bulk bought & re-branded at an extra cost. I don't actually have a problem with people doing this, i just don't appreciate the shoddy marketing that most of them use!
The first time I was made aware of private labeling was when I worked in retail for Nine West shoes. They are quite a popular brand in the US and I had noticed that other retailers had similar styles to them only to find out they had bought those designs from NW and slapped their own labels on them. They were also a lot cheaper too!
Compete with private label like you compete with any other brand. Set your brand apart with a clear case for why it's worth more than the store brand.
This is actually very interesting topic, as many companies use the Private Label manufacturer (for example: http://kosmet.com.pl/en) and then they are selling the same thing with different label and ofc with different price. And the quality is the same.
i loved this post. thank for sharing such post

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