Agility. How smaller white label manufacturers are taking on big brands and winning

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In every industry, including manufacturing, there is a war between deep-pocketed big business and smaller agile startups. This is no different in the world of supplements. This war has been raging for decades, but as we see the giants getting bigger, we are also seeing a huge spike in the number of new entrants to the market, and their velocity of growth does not seem to be slowing down.

How to Slay a Giant

Smaller white label manufacturers of supplements are very well positioned against big name brands, because of their agile nature, innovative mindsets and entrepreneurial spirit. These smaller players innovate faster and more frequently as their simpler business structures, and limited levels of internal bureaucracy allow them to execute research and development quickly and efficiently, at very little cost when compared to the large scale projects undertaken by big business.

People Buy from People

A major benefit of white label supplement manufacturers is that they are small enough to know each of their customers personally and in detail. White label manufacturers by definition work with a select group of customers to provide a level of quality, service and differentiation that big supplement manufacturers just cannot provide. In addition to this, a smaller white label manufacturer knows their customer well, which means auxiliary functions, such as marketing supplements can be highly targeted and therefore more impactful.

The Rise of Social Media

Social media has changed the business landscape for good, and it’s not just the marketing department that needs to take note. Social media permeates every walk of life, whether LinkedIn for business interactions, or Facebook for personal, we are all on social and we talk. This means, that the phenomenon that is known as ‘social proof’ gives small businesses a huge platform to discuss and promote their products, and if their products are good enough have other people promoting it for them, at zero cost. In a world where every product and company is reviewed and critiqued in a very public way, small businesses have the benefit of really knowing their market and responding to them as individuals, which at the end of the day is what social media is all about.

An Ever Increasing Rate of Change

In 2019, change is the standard. Whether we are talking about technology, trending topics or innovations in products and processes, smaller businesses have a much lower cost to embrace these opportunities and to continually improve. In the supplement industry, the natural agility of smaller white label manufacturers means that they are able to respond quickly to market trends, invent and innovate at a pace that can’t be matched by big brands, and continually improve their processes and products through rapid trial and error.

Risk and Reward

It is fair to say, that the higher the risk the higher the potential reward. However, risk is something that big supplement manufacturers need to manage very carefully, as the downstream impacts of making the wrong decision are amplified by their size and lethargic nature. Comparatively, a small white label manufacturer may be able to take bigger risks and more frequently because the overall impact is quite measurable when you are smaller. This risk-taking approach can lead to huge returns on investment when done right, which boosts their businesses and strengthens their position in a competitive market. As a white label manufacturer of collagen supplements, we know this very well. The creation of many of our product range was only possible because of our agile nature, ability to take risks and the inherent benefit that comes from being fearlessly focussed on quality and product innovation. Check out some of our latest innovations with our interactive product selector.