Best way to create relationships between multiple custom post types?

I’m currently building an ecommerce site with Woocommerce. This question isn’t specific to the platform, but more about relating custom post types in WordPress.

The store I’m building is for records. So of course, I have multiple custom taxonomies for products, including record label, artist, and year. Simple.

Now, what if my client wants to fill in tons of information about a record label?

The way I would do this would be to create a custom post type for the record label, and the user can create a record label, add a featured image, description, and custom meta where needed.

Then I would automatically create a taxonomy term for that record label on save_post.

This creates what I’m calling a “proxy taxonomy” between the record label post type and the product post type.

I’m just wondering if this is how other developers would approach the situation.