Our service

Why start a private label?

More and more consumers are buying private label products every day, which sparks big growth in the market share of private labels (PLMA, 2020). Companies that act on this trend experience increasing revenue and higher margins. This was
recently confirmed by ING.

Zooplus’ success story shows that private labels are becoming more important. Europe’s biggest online pet store was able to grow its revenue by 14%, which is accredited to its private label products. In an interview with Twinkle, the Dutch managing director of Zooplus said the following:

“Private labels were always interesting because of their time to market but became even more important because it allows anticipating trends” (Twinkle, 2020. P21.)

A Private Label:

  • Increases revenue, margins and customer loyalty;
  • Strengthens (online) position;
  • Generates leads and traffic;
  • Allows more flexible pricing strategy;
  • Grows three times faster than established brands;
  • Decreases dependency on established brands and wholesalers.

Challenges

Building a private label is a time-consuming task, especially if the experience with this is limited. Selecting the most suitable factory is one of the first challenges in this process. The potential manufacturer must show they have experience with producing according to European standards. Next to this, the quality and price must be in balance, and it is, of course, important to source directly from the factory. After the most suitable supplier has been selected it is crucial to set clear terms and condition on for example the quality and finish date and put is in a contract that is clear for both parties. From this moment the private label products go into production, during which the production process is constantly monitored to see if the quality demands are met. This ensures that there will be no surprises when the goods arrive.

Many aspects must be considered for compliance of the private labels. There is an increasing amount of non-compliant products flooding the European market. Six European consumer organisations tested 250 products purchased outside of the European Union, 165 of them did not comply with European laws and regulations. This causes great risks to consumers using these products. These products were offered by companies operating outside of the European Union therefore they don’t have to comply with European laws and regulations. Companies operating inside the Union that procure and sell private labels, however, are always responsible for the safety of the products offered. To prevent the health and financial risks involved in a non-compliant product one must pay attention to compliance. This means the products should not only be safe but also that the packaging and labels contain the right information and that required the technical documentation is made.

Our solution

Our service aims to fully take care of your private label needs, from development and sourcing to procurement. We offer a tailor-made solution for launching or expanding private label product ranges and make sure it complies to relevant European laws and regulations.

Using our service means that you utilize the years of our private label sourcing experience so that you have all the benefits of a private label without the risks that come along. For the entire private label range, you don’t have to look for multiple suppliers, you just ask us, and we will act as your procurement department. All so that you can keep your focus on selling. Our service goal is to make your private label successful. We are not satisfied until you have multiple repeat orders due to the great success of your private label.

Method

1. Feasibility study

After determining the strategy and margin goals and selecting the right products, we’ll conduct a feasibility study. This means that we’ll research the current applicable European laws and regulations and source your product at suitable manufacturers. From a list of suitable manufacturers, we’ll select the best manufacturer based on experience, work conditions and quality of the factory and their products.

We will compile these results into a report, that will contain the all-in prices delivered to your door. This way, our customers know exactly what the costs and quality are. No surprises.

2. Samples and packaging

After we have discussed the feasibility study and its results have been approved by you. We make sure you will receive physical product samples. The packaging and product designs are either provided by you or made by us.

After the samples are finished and thoroughly checked by us, we will send them to you. This gives you the chance to take some time to thoroughly check and test the samples yourself. After which we will make some final adjustments if required.

3. Production and logistics

Only after the samples are to your satisfaction, we start the next phase, which is the start of the bulk production. During this phase, we actively monitor the production to ensure quality standards are met. The final quality control is performed by a third party. Once it passed the quality control we will proceed with logistics. Logistics are arranged door-to-door and we will handle all customs procedures.

4. Ready for retail

When the products are in transit, we’ll send you all the required technical documentation that proves all products comply with European laws and regulations. Before sending out the products, a photographer makes product photos that will be sent to you after editing.

The moment your private label products arrive, they will be ready for retail. We take care of the procurement, so you can focus entirely on sales.

Why start a private label?

More and more consumers are buying private label products which sparked big growth in market share of private labels (PLMA, 2020). Companies that act on this trend see growth in revenue, and higher margins. This was recently confirmed by ING.

Zooplus’ success story shows that private labels are becoming increasingly important. Europe’s biggest online pet store was able to grow its revenue by 14%, this growth was accredited to their private label products. In an interview with Twinkle the Dutch managing director of Zooplus said the following:

“Private labels were always interesting because of their time to market but became even more important because it allows anticipating trends” (Twinkle, 2020. P21.)

A Private Label:

  • Increases revenue, margins and customer loyalty;
  • Strengthens (online) position;
  • Generates leads and traffic;
  • Allows more flexible pricing strategy;
  • Grows three times faster than established brands;
  • Decreases dependency on established brands and wholesalers.

Challenges

Building a private label is a time-consuming task, especially if the experience with this is limited. Selecting the most suitable factory is one of the first challenges in this process. The potential manufacturer must show they have experience with producing according to European standards. Next to this, the quality and price must be in balance, and it is, of course, important to source directly from the factory. After the most suitable supplier has been selected it is crucial to set clear terms and condition on for example the quality and finish date and put is in a contract that is clear for both parties. From this moment the private label products go into production, during which the production process is constantly monitored to see if the quality demands are met. This ensures that there will be no surprises when the goods arrive.

Many aspects must be considered for compliance of the private labels. There is an increasing amount of non-compliant products flooding the European market. Six European consumer organisations tested 250 products purchased outside of the European Union, 165 of them did not comply with European laws and regulations. This causes great risks to consumers using these products. These products were offered by companies operating outside of the European Union therefore they don’t have to comply with European laws and regulations. Companies operating inside the Union that procure and sell private labels, however, are always responsible for the safety of the products offered. To prevent the health and financial risks involved in a non-compliant product one must pay attention to compliance. This means the products should not only be safe but also that the packaging and labels contain the right information and that required the technical documentation is made.

Our solution

Our service aims to fully take care of your private label needs, from development and sourcing to procurement. We offer a tailor-made solution for launching or expanding private label product ranges and make sure it complies to relevant European laws and regulations.

Using our service means that you utilize the years of our private label sourcing experience so that you have all the benefits of a private label without the risks that come along. For the entire private label range, you don’t have to look for multiple suppliers, you just ask us, and we will act as your procurement department. All so that you can keep your focus on selling. Our service goal is to make your private label successful. We are not satisfied until you have multiple repeat orders due to the great success of your private label.

Method

1. Feasibility study

After determining the strategy and margin goals and selecting the right products, we’ll conduct a feasibility study. This means that we’ll research the current applicable European laws and regulations and source your product at suitable manufacturers. From a list of suitable manufacturers, we’ll select the best manufacturer based on experience, work conditions and quality of the factory and their products.

We will compile these results into a report, that will contain the all-in prices delivered to your door. This way, our customers know exactly what the costs and quality are. No surprises.

2. Samples and packaging

After we have discussed the feasibility study and the results are approved by you, we make sure you will receive physical product samples. The packaging and product designs are either provided by you or made by us.

After the samples are finished and thoroughly checked by us, we will send them to you. This gives you the chance to take some time to thoroughly check and test the samples yourself. And if necessary, we’ll make some final adjustments.

3. Production and logistics

When the samples are completely to your satisfaction, we’ll start the next phase., This means we’ll start the bulk production. During this phase, we continuously monitor the production process to ensure all our and your quality standards are met. The final quality control is performed by an objective third party. Once the products passed quality control, we will proceed with logistics. We make sure the products are delivered to your doorstep, and we will handle all customs procedures.

4. Ready for retail

When the products are in transit, we’ll send you all the required technical documentation that proves all products comply with European laws and regulations. Before sending out the products, a photographer makes product photos that will be sent to you after editing.

The moment your private label products arrive, they will be ready for retail. We take care of the procurement, so you can focus entirely on sales.