Contract Manufacturing Vs Private Label Manufacturing: Learn The Differences

Contract Manufacturing Vs Private Label Manufacturing: Learn The Differences

Private label manufacturing and contract manufacturing are prevalent among an export house and apparel manufacturers worldwide. But what are their differences? Is one better than the other? The short answer is, it depends on your requirements. This is mainly because both these manufacturing deals have benefits and drawbacks that you must consider before signing. So, to help you get a complete overview of these two manufacturing contracts, let’s dive deep into contract manufacturing vs private label manufacturing.

What Is Contract Manufacturing?

Contract manufacturing is similar to white label manufacturing. While they have their differences, the correlation is being mentioned, just for ease of understanding. That’s the easiest way to explain contract manufacturing in the context of apparel manufacturers. 

The clothes you manufacture with them will have your design, but the remaining aspects of the manufacturing will be defined by the manufacturer. You will get an option to pick and choose among available options, but you won’t get complete control. This is great for clothing lines that are starting and can’t afford to spend on exclusive manufacturing. 

Sometimes, it is also better to outsource your production as it allows you to cut back on your manufacturing costs and keep your final product available at a competitive pricing. It is important to note that contract manufacturing differs from white label manufacturing in one way, your designs will be your own. The manufacturer can’t sell the same design to any other brand that comes to them.

What Is Private Label Manufacturing?

Private label manufacturing is exclusive. You get complete control of your manufacturing process, and it is best suited for more prominent brands that can afford to invest in more expensive manufacturing processes to get the best possible product. From the fabric to the design and even the sewing techniques used for making your ladies wear or any other garments, you choose. 

This complete control over the manufacturing allows you to create highly customised and specialised garments that have great value for money and come with impeccable build quality. However, you should also note that private label manufacturing can be expensive due to the customisation options and skilled labour it utilises. 

This means that private label manufacturing will almost always result in the end product being unable to compete with other garments in the market regarding pricing. However, for premium buyers, it has the potential to offer a better, more durable, and sustainable end product.

Which Manufacturing Type Should You Choose?

As mentioned previously, the type of manufacturing you choose depends very much on your brand’s positioning, budget, and goals. If you are a new brand trying to make your name in the clothing line, opting for contract manufacturing can be beneficial. This is due to three main reasons. 

• Firstly, you will get to focus on building your brand and marketing instead of worrying about every detail of your manufacturing. 

• Second, you will get to be competitive with your product pricing, which almost always helps new brands break through the market. 

• Lastly, you will benefit from the expertise of apparel manufacturers who have been in the industry longer than you. It will help you learn about the ins and outs of apparel manufacturing and how it can impact your final product.

However, it should be noted that even as a new brand, if you want to position yourself as a luxury brand, you can opt for private manufacturing. But ensure you have adequate experience and knowledge about every aspect of garment manufacturing before you get started as it is crucial.

When it comes to private label manufacturing, it is generally considered an excellent option for more prominent brands that have a clearly defined product that needs to be manufactured strictly as per the specifications. This type of detailed and often rigid manufacturing guidelines helps brands differentiate their products and make a more significant impact. So, choose the style that works best for you.

Conclusion

Both private label and contract manufacturing are beneficial for brands as they can help you save the cost of setting up your own manufacturing unit. To learn more about the apparel industry and manufacturing processes, feel free to check out CheerSagar. CheerSagar is among the leading garment manufacturers in India and can help you with both contract and private-label manufacturing. Check out the website to learn more about their services.