White label: an easier business solution for your product inventory
White label is a kind of branding that is also termed white labeling. According to business terminology, it is a production and marketing method in which a product is manufactured by a company under “no label” for another seller, who rebrands it in their own name.
It is a legal B2B marketing process and under while label, products are manufactured usually in bulk quantity.
From the manufacturing point, the White label protocol is adhered to when a product or service removes their brand and logo from the end product and the said manufacturer, instead of using their own flagship logo, uses the branding requested by the purchaser. For example, if you visit a grocery store like Walmart, you will get to find that some products that are sold under the “Great Value brand”.
White label production is mostly used for bulk-produced general products including electronics, software packages, as well as consumer products such as dairy products, etc.
History of white label
The term “white label” was derived from an old music industry practice. In it, radio station jockeys (RJs) used to stick white labels on promotional records to stop competitors from knowing which artist accomplished the songs. In retailing as well as in marketing, white labelled brands are mostly generic products and contract manufacturers produce and sell them to another company.
The identity of the producer is never revealed: besides profit margin, white labeling offers the retailers the liberty to repack the product under the own label of the said retailers.
How it works?
The vendor/manufacturer company develops a “plug-and-play” product for the buyer’s business, for example, a white label dairy company can procure its clients diary products on white label to add the brand of the client. With the help of White Label, buyers can add their company’s name, logo, icons, URLs, corporate emails to align them with the target brand comfortably. After full customization, the client can start market supply to earn revenue.
The manufacturing company will have no responsibility for marketing but quality assurance has to be maintained from their side.
Private label vs. White label: the difference
One of the chief differences between the private label and white label brands is that private label brands are manufactured for exclusive sale by a precise seller, and that seller reserves the right to alter or improve a product as he personally wants.
This flexibility of products don’t exist with the white labelled brands, as producers mostly vend these products to manifold retailers, who then work on creating further repackage for the delivered product under their own brand name without changing it, and sell it to the consumers.
White label solutions work well for almost every consumer items from cereal to tickets.
Grocery stores sell cereal and other products with their own brand name at a discount rate to other brands. Similarly, ticket resellers can easily manage their ticket inventory more professionally through a white label ling solution.
This also upsurges distribution so that fans can have more choice from here they can purchase good quality products.
The popularity of white label service is quite impressive across the world. Thus popularity is generated due to some of the pros related to white labeled product manufacturing.
Let’s close view these rewards here.
It is a faster process for create a brand: White label solutions are generally fully integrated and ready-made type, which makes branding very easy. As the reseller, you’ll be free from concerns about needing to spend time and money on research or development.
You can add your own branding and identity, and get back to business. It is definitely a short cut to add new product portfolio without taking extra load of responsibility of manufacturing.
It saves time, money, and manpower: Developing a good product can be time consuming in terms of money, research and development timing, and investment of human capital. It can be extensive to get a stable and quality product in case even you know the complete know how.
But when you avail the facility of white label products, you can save time in account of creating architecture, designing, execution or production, and testing the solution for the market feedback no matter if you are dealing in a product or any service, etc.
In today’s business industry, time is one of the premium functional factors. Grabbing market share is important, and therefore for an established brand, white label product option may act as fast and cost effective option in the end to expand its portfolio.
It permits you to lay emphasis on your business’s basic proficiency: Setting a different set up for a product manufacturing, its machineries, finding experts, doing quality control etc. is a long-way process and it needs investment too.
In case of white label products this initial investment and the hassle to setting an infrastructure can be skipped. It can work as a readymade product at one’s portfolio that needs retailing and marketing, etc.
Disadvantages of while label concept
Although, while label product policy is quite popular globally and business enterprises are adopting this business strategy at random, there are few snags of this product management process. These are,
- Price, which may not be negotiated according to the buyers’ budget
- Brand integrity cannot be maintained because the manufacturer and retailer are two different units
- In many cases, the repute associated to the successful presentation of the product gets related to the seller’s brand.
In a nutshell, white label products can facilitate you to use your business’s unique labelling for creating a product or service without spending in infrastructure or technology to get it implemented and introduced in product portfolio.
The ultimate result: You can lay your focus on creating your brand and selling your products for pulling traffic toward your brand while shortening the conversion path for the consumers.
Milkio offers white level service facility for their dairy products to retailers on demand. Based at New Zealand, the manufacturer produces premium dairy products like organic grass fed ghee, etc. To get more detail on white labelling service of Milkio, please visit at: (contract manufacturing)
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