How To Launch a Private Label Business?

A comprehensive knowledge of launching private label business


How to Start A Successful Private-Label Business

Starting a private label business in anywhere around world for creating your business logo and putting it on the products and packaging. It also involves market research, finding the right products, and getting in touch with an experienced and reliable supplier. 

Here we take you through a step-by-step process on how you can start your own private label business. We will dive into how you can get in touch with a top-notch graphic designer, as well as choosing the best products.

Why choose a private-label business?

Up to 50% of Amazon sellers prefer to privately label their products. On top of that, studies show that private labelling has increased in Hong Kong over the last few years.

You can significantly improve your business profits through private labelling by up to 25-30%. This is because it helps set your business apart from your competitors.

While this is a testament to private labelling’s success, it also proves that there is plenty of competition as more and more sellers get into private labelling.

Understanding how private labelling works

Private labelling involves putting your logo on a generic product. One of the main advantages is it allows customers to identify with your business brand. This can help develop customer loyalty.

Remember, customers are loyal to brands, not to products.

Private label products are cheaper, yet have the same quality as big brands. They could even have a better quality. One study conducted by retail customer experience showed that 98% of customers will buy a private label product.

Private label products allow customers to identify products from one seller and, depending on the experience, can choose to continue buying the seller’s products or choose a different seller.

Understanding the costs involved

One thing to note is that private labelling costs more than selling generic products. Some of the main costs to consider when looking to start your own private-label business include:

  • Logo design – you will likely not have the necessary skills to design your own logo. For this, you will have to hire the services of a graphic designer.
  • Manufacturing costs – you will need to contact a supplier to discuss the costs of manufacturing the products and putting the logo onto the product.
  • Marketing – since potential customers don’t know about your brand, you will need to spend money on marketing and advertising. You may also need to hire an expert to set up a website for you. This will come with extra expense, such as the cost of web hosting.

Setting up a business website

In the modern business environment in Hong Kong, it is proving highly important to have a business website. To establish one, you will need the services of an expert.

You will then work together to develop aspects of the website, such as:

  • The domain name
  • Choosing a host
  • Page building
  • Setting a payment system
  • Testing and publishing website
  • Site maintenance

Getting a business lawyer

A business lawyer will help your business operate within the law and therefore avoid lawsuits. Being proactive can help you prevent issues down the road.

Brand and logo registration

To register your business logo and brand in Hong Kong, file your application online at

Consider enlisting the services of a trademark lawyer. They will guide you through the process and help you navigate the sometimes-complex world of trademarking.

For instance, your registration may prove difficult if you chose a business name that is too generic. Your lawyer can help you make better choices.

IT services for operations

Hiring IT services will help you run your business smoothly and efficiently. You are able to get more work done and thus increase the business bottom line.

Finally, consider setting money aside for any unforeseen circumstances and costs of starting a private-label business.

Choosing products

The products you choose are central to the success of your business. It is through their sales that you will earn a profit.

When choosing generic products onto which you will put your logo or label, start with a single product. Make sure that the product is small enough. This allows you to fit multiples of these products into a single carton, thus saving on shipping.

Also, consider any complementary products that users may need when using your product. This offers you an opportunity to expand your business.

Note that you don’t have to stick to one product, and you can always change to a more suitable product for your business in case the first doesn’t succeed.

This is where market research enters the picture.

Market research and defining your target market

Coupled with choosing a product to stock and sell, you will also need to define your target market. You can do this by asking yourself two main questions:

  • What demographic is most interested and most likely to use your product?
  • Is there a significant market and demand for your product?

Market research can help you find the answers to the above questions.

But how do you do market research?

Options include:

  • Using online survey templates.
  • Buying market research from companies that specialize in the trade, such as Nielsen and Kantar Group .
  • Hiring a research firm to do the research for you.

When starting your business, you will likely have limited funding. You want information quickly and efficiently, and that is why you should consider the most convenient way for you to access market research data.  

Setting yourself apart

No matter the type of generic product onto which you choose to put your logo, remember that you will likely face competition from similar products.

This is why it’s important to ensure that your logo and brand stands out from the crowd.

To do this:

  • Create a list of your competitors and do a thorough analysis.
  • Find out what is common about them.
  • Do the opposite.

For instance, if your competitors market themselves using a serious tone, you could try being fun and exciting.

Setting your brand apart solidifies your business in the minds of customers and will help develop customer loyalty.

Creating brand identity

At the centre of your brand identity is your logo. This should be easily recognizable by potential clients. Ensure that the logo is available as both a business and website identifier.  

It should reflect what your business is all about and deliver the business message to the customers.

Hiring a professional ensures you get a top-quality logo.

You can find a top-notch graphic designer easily through job boards or companies, such as International Desi, which can offer customized services for launching the business.

To access a quality graphic designer, read reviews from previous clients. This will help you create a mental image of the standard of work of the freelancer.

Also, take a look at their ratings on the job board. A higher rating means a better quality graphic designer.

Last, consider their payment rates. Here you will need to balance between quality and rates, keeping in mind that the best graphic designers will usually ask for higher pay.

Creating customer experience

This brand experience is all about a consistent style of communication with your customers.

  • For instance, how will you deliver your content on your website? What tone you will use, colors, logo, pictures, etc.?
  • Another simple way of creating brand experience is to offer high-quality and durable products. Customers will then expect quality when buying your products.
  • Put yourself in your customers’ shoes and ask yourself, what would I like to experience or expect from my business brand?

Locating a supplier

The supplier is a crucial member of the team. It would be best to locate a reliable and highly experienced supplier for private labelling.

Luckily, many overseas suppliers of generic products will usually offer private labelling to their clients. Find one with at least 3 years of experience.

A simple way to locate a supplier is through

Make use of filters and choose an assessed supplier (has been inspected by a third-party inspection company) or a trade assurance supplier (you are covered if your product doesn’t meet quality standards or isn’t shipped on time).

Developing and securing your brand

Having found the right products, markets, created the perfect logo, and having located a reliable and highly experienced supplier, you will also need to build your brand.

You can do this through:

  • Copyrighting the business name and logo
  • Setting up the website
  • Creating a social-media presence

Final word

A private label business will help set you apart from your competitors and help develop a loyal client base. This can significantly boost your business’s bottom line. Keep in mind that building a successful private label business takes time and effort. Resilience will be vital to ensuring your success.

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