How Does the Private label manufacturers association categorize Its Members?

Private label manufacturing is a concept that has only become popular recently. In fact, the concept is such an integral part of the global economy that there exists a private label manufacturers association which represents the interests of private label manufacturers. The concept of private label manufacturing allows for people to sell products or services under their banner even though some other manufacturer or service provider is providing the products or services. There are two reasons for such a concept to become so popular. The first reason is that this allows new and budding entrepreneurs to set up new businesses and grow without having to invest too much capital into the venture. Furthermore, this concept is also highly beneficial for established companies because it facilitates their efforts to test a new product.
Both the new and the established companies source their products and resell it in the market to direct consumers. Subsequently, after receiving favorable results and building up enough capital they can then establish their own manufacturing units, depending upon their specific situations. As per the private label manufacturers association there are primarily four different types of private label manufacturers. The following is the established categorizing scheme by the private label manufacturers association.

1. National brand manufacturers:

As per the private label manufacturers association, these are private label manufacturers whose main aim is to make the most optimum use of the manufacturing capacity. Hence, these manufacturers use their surplus capacities that are often seen during off seasons or particularly low demand periods.

2. Niche private label manufacturers:

According to the private label manufacturers association, these are private label manufacturers who are solely focused on the private label manufacturing industry and do not diversify into anything. Furthermore, these manufacturers also tend to be based in one niche market where they try to dominate. However, there are also private label manufacturers in the private label manufacturers association who function across sectors.

3. Retailers or wholesalers:

The private label manufacturers association even includes a category for retailers or wholesalers who produce products for marketing while already retailing established brands. This phenomenon is the primary reason how the concept of private label manufacturing came into the public light.

4. Regional brand manufacturers:

Even though the difference between these types of private label manufacturers and national private label brand manufacturers is that of size, the private label manufacturers association chose to create a different group for them. As is obvious, these are regional brands who also try to use their excess capacities.
The above mentioned categorization by the private label manufacturers association is fairly simple and hence easy to understand. Furthermore, it encompasses almost all types of private label manufacturers. However, it should be noted that there may be private label manufacturers who can be categorized in more than one of the above mentioned groups. For example, there are alternative medicine manufacturers who sell their products under their brands and also choose to provide these same products to a resale entrepreneur.