Blog

Private Label Service: An economical solution for SMEs

Private Label Service, commonly referred to as OEM (Original Equipment Manufacturing) is a helpful solution for small and medium enterprises. It enables companies to concentrate on their core competencies in terms of marketing and sales rather than the product production process. So what Private Label can benefit a business?

Introduction

Most retailers are selling products under a famous or national brand, in other words, they are distributing products. Private label services will help them produce and sell products under their own brand. Otherwise, investing in manufacturing, marketing, and distribution can be challenging and even impossible for small businesses or those just starting out. It can be possible with private label service, which will manage the entire manufacturing process, so you can just focus on sales.

What is a Private Label?

A private label is also known as a private brand or private-label brand, sometimes also called an OEM (Original Equipment Manufacturer) product. It refers to products sold under the brand name of a company but manufactured by a third party. Retailers control all about the products, such as specifications, packaging, and any other associated details. Private-label products are produced and packaged by the manufacturer, then the retailer is in charge of delivery and selling in the market. 

For Private Label, the manufacturer exclusively produces that product line for one retailer, who will have the only right to sell it. Therefore, private labeling is frequently used by retailers to offer exclusive products, set themselves apart from competitors, and maintain control over price, branding, and marketing. Consumer product categories are the most popular private-label products, typically food and beverage, personal care, clothing, etc.

Private label (6)
                                                                                 Private label products

Why should you use the Private Label Service?

Private labeling enables you to create your own brand without incurring significant risk and without spending a lot of money. It can be one of the most profitable business initiatives. Private Label Services will provide you with many advantages for your business.

Flexibility

One of the best things about private label items is their ability to be tailored to the specific requirements of your company. If retailers observe an increase in market demand for a particular sector, they can easily make requests to manufacturers about a new product line to meet customer demand. The private label manufacturers possess a wealth of knowledge and experience, allowing them to adapt quickly and efficiently. 

Control production and quality

Third-party companies act on the retailer’s instructions and give them full control over the ingredients and quality of the product. Retailers or brand owners will have a direct business deal with the manufacturer, allowing them to control the design, materials, and quality of the finished product. This is why private label products tend to be higher quality and more carefully managed than other big brand products if distributed.

Lower cost

The cost of a private-label product is typically lower than that of a branded product. This is due to a number of factors, including the fact that the economy of scale works for the private label company because they are producing a large volume of products, thus the cost will be minimized. Secondly, as these products do not require the branding expense of a national brand, they are more profitable and leave a larger margin than branded products.

Private label (1)
                                           The cost of private-label products will be minimized

High exclusivity

Private label manufacturers can create and produce products that differ from established brands. This allows you to pursue novel product concepts regardless of what the market is currently doing. The Private Label model gives you the exclusive right to sell products under your own brand, thereby establishing your own brand identity and distinguishing yourself from competitors. With an effective marketing plan, the product will be in high demand, which is advantageous to you as your company is the only one who can sell it.

Focus on marketing and sales

Manufacturers are in charge of product manufacturing and packaging, which means businesses can concentrate on marketing, brand awareness, and sales in the target market. Private labels enable the brand owners to have complete control over the design and aesthetic of the brand it is selling. This gives the retailer complete control over the appearance and feel of the product. It helps to be more effective in launching and distributing products in the market.

What does the Private Label Service from FGC offer?

As one of the best private-label tea manufacturers, Future Generation Company Limited can meet all the demands of clients in terms of service quality, qualification, product uniqueness, and packaging diversity. With a comprehensive Private Label Service, FGC helps you bring your beverage ideas to life by providing free samples, stable supply, free label design, and fast delivery. Having more than 26 years in the production and export of tea and beverages, we are confident to be a responsive and experienced partner. 

Sourcing the best materials

At FGC, our Private Label Service provides comprehensive support for all aspects of beverage production. We provide you with diverse sources of tea and other ingredients such as herbs, fruits, flowers, etc. Besides extensive tea around our country, Vietnam, FGC’s sourcing comes from local partners and suppliers, as well as from regional countries around the world, including India, China, and some countries in Africa. 

  • Vast tea farms with more than 4500 hectares.
  • Well-controlled quality tea from local partners.
  • Numerous prestigious suppliers from all regions of the world.
  • Premium teas and herbs from Sri Lanka, India, China, Africa, etc.

Furthermore, our tea and ingredients are all up to international and regional quality standards, as well as being eco-friendly. Some of the qualifications we have for our tea and ingredients include ISO, HACCP, RAINFOREST ALLIANCE, Organic, VietGAP, KOSHER, etc.

Private label (5)
                                                          Some tea drinks produced by FGC

Create a unique beverage formula 

Research and development (R&D) is an essential part of the process of introducing new products into the market. In the tea sector, as well as in the food and beverage industry in general, R&D plays an indispensable role in the development of new products. These activities improve products in terms of their healthiness, sustainability, taste, shelf life, production speed, and processing efficiency.

  • Creating a novel product from novel flavors and novel ingredients.
  • Finding cost-effective solutions without sacrificing product quality and taste.
  • Enhancing the nutritional value, taste, and texture of food & beverages.
  • Optimizing product shelf life.
  • Developing healthier products with less sugar or fat content.

With Private Label Service, FGC assists you in researching, testing, and developing a unique formula by blending a variety of teas and ingredients. We have all the resources to create recipes and produce your tea products. Not only that but we also offer various types of packaging and stunning design to make your product more attractive. 

A wide range of packaging types

We provide you with a myriad of packages that are safe, high-quality, and ideal to protect the flavor and hue of tea. Free samples and label designs are available for every client to bring them a reliable experience before ordering our products.

– PET bottles

As one of the most popular packaging for beverages, PET bottles are a good choice due to their numerous benefits for manufacturers and consumers. Not only does it have a low price but it is also durable and recyclable. Besides, hot filling and packaging technology at our factory allows sterilizing the product, as well as the inside of the bottle and cap, to guarantee the product’s safety and extend their shelf life.

Available capacity: 350ml/455ml

Private label (4)
                                                                        Various types of PET bottles

– Tetra Pak cartons

Thanks to the special 6-sterilized layer boxes, Tetra Pak cartons (or paper boxes) help preserve and minimize changes in product quality based on its shelf life. FGC is applying Aseptic filling and packaging technology, one of the most modern processing techniques that makes it possible to package beverages that are shelf-stable without preservatives. 

Available capacity: 225ml

Private label (3)
                                                                                   Tetra Pak cartons

– Slim CAN

Cans or aluminum cans are commonly used for soft drinks. It is among the most recycled materials on the planet, which makes it a convenient and sustainable choice for consumers. Applying hot filling and packaging technology also eliminated the need for preservatives and chemicals as it used heat to sterilize both the products and cans. 

Available capacity: 330ml

Private label (2)
                                                            Slim CAN packaging for beverage

Besides, FGC also supports clients with a stunning logo and product information design. Logo and product details not only assist in positioning your brand and enhancing your marketing approach to your target customers. With decades of experience in the private label industry for a variety of small and large clients, we are dedicated to creating aesthetically pleasing and inspiring tea packages.

Explore the best packaging for RTD Tea:

PET bottles, CAN, paper cartons: Which beverage packaging is the best?

Conclusion

Private Label Service is a cost-effective solution for both online and offline retailers, or small and medium enterprises, enabling them to sell products under their brand name without worrying about the manufacturing process. If you are looking for a prestigious private-label tea manufacturer, do not hesitate to contact FGC. Contact our sales department via info@vietnam-tea.com to be consulted and get more information about the Private Label Tea services of our company.

About Future Generation Co., Ltd

Future Generation Company Limited is one of the largest beverage suppliers in Vietnam, with 26 years of experience in production and export. FGC is equipped with modern machines such as Hotfill PET and TetraPak machines, ensuring high-capacity production. FGC strives to achieve our mission to become Vietnam’s leading healthy beverage company. Our factories also meet international standards such as ISO, HACCP, etc. In addition, we constantly innovate our machinery system, strengthen production capacity, and increase productivity. 

FGC also provides Private Label Services. With this service, we can help customers in researching and formulating beverages, designing product label packaging, and creating their own brands. This is an ideal solution for small and medium enterprises. Moreover, FGC provides free samples for customers to test before bulk orders. We also ensure delivery as fast as possible. 

If you are a tea distributor, tea importer, teashop manager, or even tea lover, we are committed to being your prestigious tea source supplier in Vietnam!

Contact

Address: R4 building, Office Quarter 02, Royal City, 72A Nguyen Trai St., Thanh Xuan Dist., Hanoi.

Phone: +84 24 73 000 125/ +84 24 73 063 369

Mail: info@vietnam-tea.com

Website: https://oem-fgc.com/ 

Facebook: https://www.facebook.com/fgcvietnamtea 

LinkedIn: https://www.linkedin.com/company/fgcvietnamtea/

 

Source:

https://www.bigcommerce.com/ecommerce-answers/what-is-a-private-label/

https://www.getdor.com/blog/2021/09/09/private-labeling-in-retail/

https://vietnam-tea.com/tea-news/fgc-one-of-the-most-prestigious-private-label-tea-manufacturers-in-the-world.html

Share for us

More blogs like this

What is the so-called “ Salt-Preserved Apricots”?

What is the so-called “ Salt-Preserved Apricots”?

Salt-Preserved Apricots produced by Future Generation Co., Ltd is the best drink for summer days. The beverage is produced based on a unique traditional Vietnamese recipe, so it is profoundly Vietnamese-identified.  This post offers you interesting

sugar-preserved plum

What is sugar-preserved plum? A simple way to make

Sugar-preserved plum is not only a preserved recipe. The combination of the sweetness of sugar and the sourness of plums will create an interesting drink. What it is and how it is made will be shown