“White label” products are those that do not have a label and can be sold under their own name. This makes them appear as if they were their own product.
White label: What it means
White labels are products or services that are not brought to market under the brand of the manufacturer. Instead, they have a “white label”.
- One product, multiple labels: White label products or services can be sold to different companies. These companies put their own label on the goods and sell them under their own name. This means that white label products come onto the market with different labels.
- Examples: For example, credit cards or digital banking services are developed by a third party and offered by several companies under their own name. The food industry also often uses white label products that are sold under different brands. Web hosting services are also an example of white label services.
- Not changeable: Since white label products are sold to multiple buyers, they cannot be customized. This is the difference to “private labeling,” which is produced exclusively for one buyer and can be customized according to their wishes.
- Also branded and cheap product: White label services can make it possible for a branded product to have the same content as a cheap product. Since a cheap product can be purchased by a wider target group, sales are higher and the production costs are profitable for the manufacturing company.
- Building your own business: White labels offer a good opportunity for start-ups or other companies to build their own business without existing production structures.
More efficiency: advantages of white label products
Companies use white label products for a variety of reasons.
- More efficiency: Companies that purchase white label solutions save time and money. They do not have to invest in developing their own products or services and do not have to make complex decisions in this regard.
- Focus on marketing: This allows companies to concentrate more on target group analysis, branding and marketing.
- Faster time to market: By using ready-made solutions and products, they reach the market faster and sales are achieved more quickly.