One highly effective and popular product launch strategy is utilising white Label products. A white Label product refers to a generic product originally created by one company but then rebranded and relabeled by another company with its own brand identity.
A White Label is a product or service made by one producer that can be rebranded and relabeled by another organisation under its own logo. This implies that other organisations can purchase the product and sell it under their own name without creating or manufacturing it from scratch. In simple terms, white Label means that Organisations use predesigned products and add their branding.
White labelling can be helpful because the companies can focus on their expertise, like marketing and sales, without creating their own product. In this way, WL helps organisations grow their range of products and explore new markets without spending time and money on research, development or manufacturing.
WL can be used in various spheres. Thus, banks can be offered white-label services for processing credit cards if they don’t have such capabilities themselves.
Companies and businesses can offer customer support, web design and hosting, software development, and other services by using WL. These companies can buy the services from other sellers but sell them using their name. White labelling assists businesses in offering a complete range of products without having to create everything themselves.
White labelling can be helpful for companies in many ways.
- Companies can offer a wider range of products while concentrating on a specific audience.
- Businesses can work with outside manufacturers.
- WL allows companies to make more money by selling things for lower prices than well-known brands.
However, there are some drawbacks to using white Label products:
- The enterprises using white labelling cannot stand out from their competitors, as they have similar products.
- The organisations using WL cannot control the quality and may end up with lower standards if the actual producer makes alterations.
Three company directions that can benefit from using white-label products include the following:
- electronic enterprises
- worldwide and massive merchandisers
- retailers
Private label branding is not limited to just supermarkets. Big retailers like Walmart have gained significant benefits by selling their brand products, even though third-party companies make them.
White Label products are a good option for businesses to grow and make more money. They can expand the range of their products and explore new markets without spending time and money on creating and making products and services themselves. WL helps businesses reach new customers and increase their sales. However, companies must carefully consider the advantages and disadvantages of using a white-label model before deciding.
Final Thoughts
The concept of white labelling offers many success stories, including Costco’s Kirkland brand. Costco has achieved mutual gains by combining national labels with private offerings and partnering with industry giants like Starbucks, Quaker Oats, and Tyson Foods. White Label products allow businesses to expand their range, enter new markets, and increase revenue without investing in research or manufacturing.
However, businesses should be aware of the risks related to white-label branding, such as lack of control over product quality and differentiation from competitors. It is important for companies to carefully consider both the benefits and drawbacks before choosing a white-label model.
