WHOLESALE ONLY

A Guide to Private Labeling

Posted on 12 October 2018

 

Option 1: Label Change

This option is great for anyone who wants to be able to provide a more branded experience in their boutique or stores. Also great for preventing your competition from finding out where your items came from.

How Does it Work?

  1. Place a order from your favorite manufacturers on FashionGo, Vendor Website etc
  2. For your shipping address, put the address of your relabeler
  3. Items get relabeled and shipped to your boutique

What is a Relabeler? 

A relabeling company's services include taking products and changing out the labels and tags for your boutique/business. They also consolidate your order from multiple vendors so you get one shipment instead of multiple shipments. LARA works with a variety of relabeling companies in the LA Fashion District such as CNS and BLUE STAR. If you currently use a different relabeler, LARA delivers for FREE to any relabeler within 5 miles of Los Angeles Zip Code 90021.

  • *Make sure to email us first before checking out if using a relabeler, we will have to approve your account for Local Delivery beforehand so that you don't get charged for shipping :) 

PROS For this Option

  • Shipping is consolidated from multiple vendors into 1 shipment
  • Most vendors in the LA Fashion District deliver to these relabelers for free 
  • Your store will have a more cohesive branding experience
  • Deters your competition from purchasing the same items as you

CONS For this Option

  • Increased costs - while most vendors deliver for free and you may save on shipping, most relabelers charge for each unit you get relabeled
  • Vendors can't be held liable for short shipped or damaged goods or returns (we will explain more later in this post)
  • Longer time to receive your products

Important things to note

  • Check with each vendor before relabeling products. Some vendors have policies against relabeling their items.
  • Make sure you have your labels designed and ready to go. 
  • Some vendors may treat your items as final sale the minute the labels and tags change. At LARA Fashion we cannot accept any short shipped, damage claims or return requests if items were sent to a relabeler. It is up to the relabeler to inform LARA of any short ships and damages.
  • At LARA we allow our retailers to rebrand our items as we do not offer zip code protection

Option 2: Private Cuts

This option is great for larger retailers who are looking to offer exclusive items

How Does it Work?

  1. Design and request a sample
  2. Make fit adjustments to your sample
  3. Choose fabrics, trims and pre-pack ratios
  4. Items get shipped to you once ready

More information on private cuts 

This is a popular option for larger retailers such as Forever 21 or even larger boutiques who want to offer their customers exclusive items. However, be prepared to order in advance!

PROS For this Option

  • Items are specially made just for your boutique/store. 
  • You can customize anything such as sizing, pre-pack ratios, fabric colors etc
  • Heavily discounted per unit cost.

CONS For this Option

  • Large Minimum Order Quantities (MOQs). Private cuts will require anywhere from a minimum of 300 - 1200 units per color depending on style, fabric print and trim availability
  • Most manufacturers will require a deposit to get your job started (Industry standard is 30% deposit)
  • Depending on terms, payment may be due before you receive your items but financing alternatives are available (net payments, factoring etc)
  • Anywhere from 3 weeks to 3 months for lead time

Important things to note

  • If its your first time doing private cuts make sure you are ready with a idea of what you would like. There are lots of costs involved to take your idea into product such as sample development, pattern making, grading, marking and finally production. Most manufacturers will charge for these services but if you build up a good relationship and consistently order, many manufacturers will cover these costs for you. 
  • Generally there are 3 phases with samples: A Fit Sample - this sample is made to get the overall fit of your design. A pre-production sample - this sample takes into all the adjustments needed found from the fit sample. A T.O.P sample (Top of Production) - this sample will be what your final product looks like including fabric, trims, label etc. 
  • Generally MOQs are 300 units per item. However, MOQs will change if you want a exclusive or custom ordered print. Ex: A solid colored dress will have a MOQ of 300 units whereas the same dress in a exclusive floral print may increase MOQ to 1000 units. This is because there are minimums to print your floral design onto fabric. Another tactic is to use the same fabric to make multiple styles therefore dropping the MOQ per style. 

 

Overall, almost all boutiques can benefit and participate in private labeling their items but make sure to consider costs and lead time involved especially in a fast moving clothing industry. If your company is ready to take the leap into privately cutting some styles make sure to be ready for headaches, delays or unexpected problems. 

 

LARA Fashion offers both options for private labeling and if you have any questions, please feel free to reach out to our sales team at sales@larafashion.us 

 

We hope you found this informative if you have been contemplating private labeling for your business. 

 

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