Private label, white label, OEM, ODM and CMT

These terms are used with overlapping meanings and sometimes muddled. Know the difference before you talk to any supplier, because each model means a different amount of control and cost.

The best known models

• Private label: A product made by a supplier and sold under your brand, customised to varying degrees.
• White label: A ready, unbranded product the buyer puts their name on, with minimal change.
• ODM: The supplier designs and makes, and you choose from their designs and adjust.
• OEM: You provide the design and specification and the supplier makes it under your name.
• CMT: Cut, make and trim only, with you providing the fabric and the pattern.

Where private label sits

It usually sits between white label and ODM: you choose an existing product and adjust colours, fabrics, details, labels and packaging. The more you customise, the higher the quantity, the cost and the control.

The deciding question

Ask: how much control do I need? How much money and time do I have? How much risk can I take? The answers decide the model.

Exercise

Write one sentence in your own words for each of the five models. Then open the private label model comparison template and rate which is closest to your situation now.