5 DIFFERENCES BETWEEN WHOLESALE CLOTHING AND PRIVATE LABEL CLOTHING

The business itself is a huge term, where the only thing, which works, is the human mind and strategies of how to make human resource productivity, which is human resource management. There are tons of different businesses happening around the globe, such as auto dealerships, electronics, food industry, etc. however, the most used and most beneficial business is the clothing (apparel) business. 

Every day millions of sales are being done on accounts and millions are received in cash. The requirement for sufficient clothes is never enough. Trends are changing and fashion is upgrading every other day, this trend-changing fashion is the most revenue-generating time, apparel businesses urge for.

Further digging in the industry, it subdivides into several different types, out of which two important types are: Wholesale clothing and Private label clothing. All types, one way or the other are connected to each other. However, the differences between these two are easily traceable.

Wholesale Clothing

Small businesses, such as boutiques and fashion entrepreneurs, look for a permanent and reliable source of clothing for their designs and experiments, wholesale suppliers are the only cost-effective option they have. These are the benefits; which wholesale suppliers provide to small businesses.

·         Standardized products deliver to you:

Although you are a small business, maybe you own a boutique, but having clothes, which are being sold worldwide or are in the trend globally, is a plus point for your boutique. Wholesaler sales the same product around the globe. 

For you to be an entrepreneur or be a small business this must not be unique but as a whole, if you ponder over the benefits, you will know that people will come to you to purchase the happening trend.

·        Large initial orders:

Wholesalers allow you to place large orders at the very first place when you are a small business and you need to establish your work.

They allow you to purchase inventory on a large scale, no matter what your standing in the market is or even if you are a newbie. This means you can start your business at a relatively better place than a lot of other businesses.

·        Fastest delivery, easy placement of order to shelf:

Wholesalers provide you the fastest delivery of products (a garment, threads, etc.) to display on your shop shelf. It is better than manufacturing your own private label and selling it. For your private label, you have to put cost, effort, and uniqueness into it to be sold effectively. 

But from a wholesale dealer, the material would already be marketed well enough and you will need no marketing cost for it.

·        Least control overpricing:

When you are purchasing inventory from the wholesale market, chances are either high profit or high loss. Because, if you purchase 1 meter of cloth for $2 but the market price is $5 then you earn a high profit. However, on the other hand, if the wholesaler increases the price and you pay $7 for one meter and the market price is relatively low due to an unfavorable condition, for instance, it remains $5. 

You will face high loss in this condition. In short, in wholesale pricing, you cannot control the price of the product. You have to go with whatever the market is offering you.

·        No Marketing Cost:

Since you are already buying a product from a well-known source, the product is already marketed well enough. It does not need any excessive marketing cost on your end. The product is already a brand identity. All you need to do is put it on the shelf and let it increase your revenues.

Private Label Clothing

Private label clothing is solely your own product, the private label clothing manufacturing cost (manufacture it, sell it, and the profit loss scenario) is solely on you. Owning a boutique or having a small garment business is a great learning opportunity for you to stand in the market. If you own one of the private label clothing, these are the challenges you will face.

·        Uniqueness in products:

Being a private label clothing, you have a complete approach to creativity, think as unique as you can and no one will ever restrict you from doing so. It is your brand and you decide what goes on it. But, in order to make a standing in the market, you need to make sure that your product is up to the market requirement.

·        Small Initial Order

You need to make your orders as small as possible initially. The reason for this is to maintain the quality of work and the satisfaction of the customer. Since you are not a wholesale business, the customer will come and contact you directly, in case of an issue. Once you establish good customers, it is then easy to go way for you.

·        Slow fashion

Your designs and style might take a while to enter into the market and make people adjust to your fashion sense. For faster production, you can take half of your inventory from the wholesale market and create half of it. Once your name is set in the market, nothing can beat your standing.

·        High marketing cost

Since you are a small business, or probably an initial one, you need to invest more in your marketing strategy. Marketing is the most important thing to sell your product to your targeted audience. 

It is a way to get you the most market share. However, the marketing techniques you choose should work in favor, no matter what the market is doing.

· High-Profit Margin

In private label Clothes, the profit is in your hand. All you need to do is create hype for your products and let people go crazy about it. The more you create its worth, the better profit you will get.

Also, like a wholesale business, you do not need to pay all the additional costs of the distributor and other expenses because you do not have any. In short, all the profit you earn is only yours.