The difference between wholesale and private label clothing

Whether you sell your fashion clothing line through a retail outlet or have an online marketplace, you are up against a lot of competition. With an exclusive fashion line by big brands like Amazon, your apparel store must be prepared to meet the frequent changes in customer demand.

Building a successful fashion brand is not simple. From knowing how to source your fashion products to creating an effective marketing strategy and branding your product, there’s a lot to be done. The most important thing is to invest in cost-effective apparel manufacturing and building a loyal fanbase for your apparel line.

If you’ve been researching how to source your products, you definitely must have come across the burning question – what is the difference between wholesale and private label apparel manufacturers or private label clothing. 

Let’s find out the difference between the two terms.

Wholesale clothing: Meaning and Benefits

Wholesale clothing refers to the apparel or fashion products that are sold in bulk quantities at a comparatively lower price as compared to retailers. Here, the wholesalers buy products at bulk from the original manufacturer and then resell them to the retailers at a higher profit margin. For many clothing or fashion apparel brands, buying wholesale clothing is a budget-friendly way of doing business.

The primary benefit of choosing to stock wholesale clothing at your retail store is for easy access to a huge catalog of products.

Private Label Clothing: Meaning and Benefits

Private label clothing is when you get your fashion line or products manufactured by third-party private label apparel manufacturers and then sell it under your private brand. In this scenario, you are directly working with the private label clothing manufacturer and not the wholesaler.

The primary benefit of private label clothing is that you get more control over the price and quality.

Wholesale Vs Private Label Clothing: 5 key differences

Control

In wholesale clothing, you don’t have control over the price of the product. If the manufacturer raises the price per unit, the wholesaler will also increase it. This eventually will either reduce your profit margin (if you keep the price intact) or end up losing customers (as customers tend to switch when price rises).
 

In private label clothing, you have direct control over the price of the apparel.

Turnaround

In wholesale, the turnaround from order to shelf is usually fast. You can simply order the products from a particular catalog. In private label, the turnaround time is a bit longer as it takes time to communicate the design to the private label apparel manufacturer and then design, manufacture, and deliver it.

Marketing

In wholesale, you get well-established products that already have a loyal fanbase. The private label brand needs to be promoted. If you have great quality and reasonable price, you can easily generate a loyal fanbase for your products.

Customization

In wholesale clothing, retailers have no right on the design of the product. They are only responsible for supplying them. The private label clothing manufacturer offers full customization in clothing to the seller. The seller can actively participate with the wholesaler to give suggestions in the product design.
 

Order Quantities

When placing an order with a wholesaler, you generally have to place large consignments and order quantities. It might be out of your budget and can lead to excess inventory stocks. 

Private label clothing manufacturer allow you to order products in lesser quantities as well. You can increase the quantity as the demand for your product increases.