The branded route to market may not necessarily be suitable for your business. In fact there are a number of arguments for manufacturing private label products:
It is less capital intensive – both in terms of set-up and ongoing support as marketing costs are negligible
There is a shorter payback period – a short term return on investment can be expected
You can expect relatively predictable consumption rates (particularly true for commodity goods).
It does, however, make your company production driven, and while it appears to be less risky in terms of investment outlay for branding, it does mean that control shifts from you to the retailer/buyer.
It’s also important to remember that customers will not pay a premium for a product unless they are pretty passionate about it.
There’s no doubt that brands excite and engage the consumer at a deeper level. Therefore the long-term gains may far outweigh the short-term returns.