Private label, white label & contract manufacturing are very similar, however, there are small subtle differences in the terms.

A white label product is a generic product that is sold commonly by the manufacturer to a large number of retailers, buyers or clients in their brand names. Each retailer, buyer or client is selling the same product with no difference other than their brand name on the product label. The retailer, buyer or client does not have the option to modify the product. A white label product can be sold in smaller quantities to a larger number of buyers or clients to adjust for a manufacturer’s batch size.

A private label product is a unique product that is exclusively manufactured by a manufacturer for a retailer, buyer or client in the clients brand name. The retailer, buyer or client has the option to modify the product as per their brand, selling & marketing requirements. A private label product is sold to the client or buyer in higher volumes or quantity than a white label product. A private label product is generally sourced in bulk by a client or buyer in a single transaction.

A contract manufacturing entity, on the other hand, can manufacture a finished or semi-finished product for a client exclusively. The retailer, buyer or client has the option to modify the product as per their brand, selling & marketing requirements. A contract manufacturing agreement is generally for a longer duration or for on-going supply to the buyer or client.