In general, the concept of private label is usually referred as a "phantom brand" which is about a situation in which a company labeled any product with their name even though the manufacturing of the product is done from any other company, but it is sold under the name of the private labeling strategy. The branding of the product is done by the company that has nothing to do with the manufacturing of the product in the first place.

In this situation, the private label makeup manufacturer is considered to be the one who takes all the charges of beauty or particularly makeup product, which is sold under their brand name but they do not manufacture these products. The approach of private branding is effective in generating greater valued marketing strategies and high demand for the products of the brands, as customers highly appreciate this approach of branding.

Although it sounds simple that a company gets its product manufactured by another company, they label it with its name without playing any part in the production of the product. Contradicting this perception, the reality is a bit complicated because this strategy incorporates a complete process of branding and project management. For instance, the process of manufacturing, branding, and marketing are evaluated before getting any product labeled under the name of the company so that approximate cost of the private labeling could be calculated for better business.

Secondly, choosing an effective product which should be brand under the name of the company is also a hugely challenging situation because lack of consideration, fluctuation in the graph of supply and demand and several other customer-related factors of the business leads to enormous changes in the business revenues. Product selection is an art that could be seen as a great intellectual plan as well; the right product always brings more to the table than expected. In addition to it, defining the targeted market, differentiating factors, brand look, experience, finding potential suppliers, and building brands are also very important in developing successful private labeling business.