A private label brand refers to a product manufactured by a third-party company and sold under the retailer's name. The retailer decides on the product's characteristics, packaging, and pricing.
Before we introduce examples of the most successful private-label brands, let's answer the two fundamental questions:
How much does launching a private label brand cost?
You will need anywhere from $1,000 to $1,500 minimum to start your private labeling.
To understand where your money goes, consider hiring one of the best accounting companies to help you properly plan your expenses. It's also equally important that once you create your private-label brand, you'll want to photograph and then photo-edit your images to match your brand's unique look and feel.
What do you need to create a private label brand?
The first step to launching a private label brand is picking your target industry – but more on this soon. Secondly, you will have to find a manufacturer to satisfy your requirements.
Once you take these steps, your private label business should be ready!
We mentioned before that the first step of investing in private labeling brands is deciding on what products to target. To help you invest your money wisely, we will provide insights regarding some of the most successful private-label brands.
Here is the list of private-label products that will best sell on your Shopify-powered store:
- Camping equipment
- Home décor
- Yoga accessories
- Custom Keychains
- Party games
Now, let's discover the possibilities each of these industries offers.
The electronic market is very competitive. So, if you are investing in this field, you must define your competitive point in either design, functionality, or pricing.
You should concentrate on one product rather than a whole electronic assortment.
Here is the list of private electronic label products that can get you started:
- Wireless earphones, computer mice, and charging stations
- Portable mini drones
- USB gadgets (fans, led lights, etc.)
Could you take a look at what Amazon did? It created its private-label brand – Amazon Basics. These are some of their best-selling products:
As you can see, they went with a simple design, but what they might lack in design, they make up for with prices that are typically more affordable than those of the technology market leaders, such as Logitech, Dell, Apple, etc.
The clothing market is enormous. People will always need something to wear hence the market's continuous growth.
If you want your share of the clothing market, we recommend you start small with one product type and work your way up.
Currently, the best-selling private-label products in the clothing industry are:
- Sports clothes (pants, shirts, shorts, etc.)
- Smart clothes (sleeves with accurate HRV monitoring, T-shirts that measure heart rate, stress level, etc.)
- Maternity clothes
Amazon also created a private-label brand for clothing – called amazon essentials. As the image below demonstrates, their products focus on based comfort and functionality rather than design.
Comodo is another example of a brilliant private-label clothing brand.
The image above depicts Comodo's smart sleeve that offers complete HRV monitoring and is connected by AIO Sleeve App with an intelligent device.
Comodo integrates unique technology features into its products, allowing them to stay competitive in a demanding market.
3. Camping equipment
Camping is an outdoor activity enjoyed by many. But high-end brands that manufacture camping equipment are often costly.
This is why camping equipment is a good choice for private label branding, as it can offer consumers outdoor equipment at a more affordable price.
Some of the products you should consider for your private-label camping equipment include:
- Sleeping bags
- First aid and camping starter kits
Amazon Basics' private label also found its place in this market.
The image above shows a tent for eight people sold for $95.47. The image below, however, depicts a similar product made by a better known within the camping industry. Their product costs $182.29.
If you tap into the camping equipment market, we recommend making the product price your main selling point.
Cosmetic products are a never-ending inspiration for many businesses. The latest trends are eco-friendly, organic cosmetic products that every brand wants to make.
If you jump on board, use plastic-free packaging and carefully plan your storage capacities, as natural products tend to deteriorate faster.
The products you can start your business with can be:
- Organic soaps
- Organic shampoos and hair conditioners
- All-natural face masks
The image below shows a vegan clay mask made by a private-label brand.
These kinds of products sell. If you choose the cosmetics industry for your private label brand, stay true to your product's description and create eye-catching product designs.
5. Home décor
This industry offers various products to choose from. To stay at the top of the game, you must develop a unique product or offer competitive prices.
If you have a talent for interior design, home décor private branding might be a perfect match for you.
Currently, the best-selling home décor products include:
- Picture frames
- Artificial flowers
- Art candles
- Statues and sculptures
This fireplace décor from Stonebriar is one of Amazon's best sellers. It has a unique design and is made to look like a product from the Dark Ages.
6. Yoga accessories
Research shows 300 million yoga practitioners worldwide, worth an astonishing $80 billion. It is safe to say that yoga has become a mainstream fitness trend.
The best thing about yoga products and equipment is that they are easy to produce, pack, and ship. So if you are on a budget, the yoga industry might be your best choice.
Products you can consider for your private label brand include:
- Yoga clothing (leggings, t-shirts, tights, etc.)
- Yoga mats
- Yoga-video exercises
Amazon Basics created this elementary yoga mat and sold it for $28.82, while the production usually costs $4,59 – $5,27. This is an example of a perfect business model.
The toy market is expected to reach an impressive $230,64 billion by 2028. It is a big market, but the industry trends are tough to predict – who would have thought the fidget spinner toy would become so popular?
If you choose toys for your private labeling business, put children's safety above all else. Design toys with parts that small children can't swallow and use non-toxic materials and colors.
Some of the best-selling toys are:
- Wooden blocks
- Soft toys
- Dolls and dollhouses
- Action figures
- Interactive board games
To appeal to younger children, use bright colors and design toys to develop basic motor and cognitive skills.
Here is the perfect example of a best-selling toy produced by VTech:
If you want to target older children, create toys that encourage kids to learn different skills and use their imagination. These toys keep children engaged longer and are great for kids' intellectual and physical development.
Here is one example of such a toy created by Think Fun. This is a bestseller on Amazon.
8. Custom keychains
Unlock greater brand exposure with promotional keychains!
Many companies and bloggers experiment with keychains to keep their brands and logo close to their customers. Whether it's a decorative plate with a logo, a handy flashlight, or a gadget you can use on the go, there are a variety of fun and valuable keychains to customize.
You can order them in bulk for your next big promotion, trade show, as a return giveaway for fans, or even to hand out at the door.
9. Party games
It might sound wild, but party games are one of the fastest-growing private-label products.
The best and most rewarding way of developing a party games private label brand is to create a new, exciting idea that would appeal to younger and older audiences.
Alternatively, you can take the easy way and brand pre-made versions of party games made by manufacturers.
Party games can come in the form of playing cards.
The image shows a popular card-based drinking game for adults made by ShouldWeDrinkTogether.
Party games can also come in family board games, like the one below – Charades by The Game Chef.
A backpack is a universal and evergreen product. Everyone uses packs because they have to – like schoolchildren, or because they conveniently allow us to carry things around while our hands stay free.
Over the last few years, intelligent backpacks have become increasingly popular. They are like regular backpacks, except they also integrate technology, such as expansion batteries, USB ports, speakers, etc.
If you choose backpacks as your private labeling products, consider their design, functionality, and wearability.
The door to this market will be open for you as most people don't have a preference for backpacks.
You can choose to have a product on the lower end, like this backpack from Shrradoo, that costs $25.99.
You can also go for a high-end product made from better, natural materials, like this one from BOPAI.
Starting any business from scratch is challenging, and success is never guaranteed. There are many private label companies available from great partners like Dropshipping.com.
But to have a better chance of succeeding, you can plan your business investments carefully and choose the industry you feel most comfortable with.
We hope our article gave you everything you need about market trends to launch your private label brand efficiently and become a successful entrepreneur.