Private label skincare has come a long way through the years—from the packaging and logos to the formulas. In fact, it’s sometimes difficult today to differentiate between private label skincare products and mass-marketed products. The enhancements in private label offerings and increased acceptance among spa-goers and consumers has made this category a rapidly growing segment in the industry. The benefit of developing a private label line is that it allows spas to create brand awareness and keep the spa top of mind long after clients leave. “Having your own private label line allows you to curate products specific to your brand and your audience,” says Anete Vabule, CEO of Selfnamed. “It lets you be in charge of what exact product is best for your clients and your brand values and philosophy. Having private label products is not just about putting a logo on a bottle—it is a strategic business step to increase product margins and profit, as well as to capture more value from the relationships you have built with your clients.”
Private label products allow spas to go from simply providing services to building a true brand asset. Instead of selling someone else’s products, they are creating their own margin, identity, and customer loyalty. “From a business standpoint, the benefits are substantial, such as higher profit margins compared to retailing third-party brands, stronger brand differentiation in a crowded market, and increased client retention as customers return specifically for those products,” says Warren Becker, founder and CEO of Next Beauty Labs. “It also gives spas full control over positioning, pricing, and product assortment. Beyond the numbers, private label extends the spa experience beyond the treatment room. Clients don’t just leave with results; they leave with products that reinforce those results at home under the spa’s
own brand.”
While some spas sell a private label line exclusively, others offer it in addition to national brands. Today’s private label offerings consist of a wide range of skincare options to include in the line, as well as cosmetics, which according to Vabule, carry some of the best margins across different consumer segments. Many private label companies offer several options of service, such as using a company’s ready-made formulas; semi-customizing the formulas; or working with the manufacturer to completely develop their own formulas and products.
There are many benefits to offering private label products, but there are also challenges that come with the process. “One of the biggest misconceptions is that launching a private label line is as simple as putting a logo on a product,” says Becker. “In reality, there are operational and strategic considerations that can significantly impact success. Challenges often include minimum order quantities that require upfront investment, lead times that can delay launches if not properly planned, and uncertainty around product selection, especially for spas that are unsure what will resonate most with their clientele. Regulatory and compliance requirements, including labeling and claims, also need to be carefully managed.”
Another challenge is choosing the right partner and not overcomplicating the launch with too many SKUs instead of starting with a focused assortment. “Not all manufacturers are built to support smaller or emerging brands, and a lack of flexibility can create friction early on, especially when trying to balance both treatment room backbar needs and retail offerings,” says Becker. “The most successful spa launches tend to start with a tight, curated selection and expand based on real customer demand.”
Once the line is created, spas should introduce their private label lines to clients directly by using the products during treatments and as locker-room amenities. Spas that use their own branded products during treatments and then sell those same or complementary products for at-home use create a more cohesive, credible experience and a natural path to retail conversion, according to Becker. “Working with a manufacturing partner that can support both backbar and retail products adds another layer of efficiency,” he says. “It ensures consistency in formulations, simplifies sourcing, and allows spas to build a unified system rather than piecing together products from multiple vendors. In many ways, private label transforms a spa from a service provider into a product-driven business with recurring revenue potential.”
Brand Expectations
Here are some important questions to ask if you are considering private label:
- What are your minimum order quantities?
- What is the typical turnaround times for both initial orders and reorders?
- Do you offer stock formulas, semi-custom options, or fully custom development?
- What kind of packaging, labeling, and design customization options are available?
- Which bottles sell the best, and what are the benefits of each?
- Is training and marketing support provided?
- Can you support both backbar and retail products, and how are those systems designed to work together?
- What level of testing and compliance support is provided?
- Can you adapt as the brand scales, evolves, or expands its product line?
- What experience do you have working specifically with spas, medical spas, or aesthetic practices?