Any product that is produced by one company and sold under the brand name of another is referred to as a white label. Also known as private label, white label products are incredibly common. Items such as software, services, food and electronics can be sold this way.
While physical products are generally brought to mind when thinking of private labels, companies can sell digital products and services that way as well. Software created by one business can be sold with the client’s name and logo on everything. Online customer chat services, SEO reseller and social media marketing can all be done by a third party under the brand name of the client. Email is a quick and easy service that can be contracted out as well. Content can be created and sent to a list of customers by a third party with all the company’s own information on it.
One of the items most commonly sold under a white label is food. Stores of all sizes make deals with producers to put custom labels on the packaging so they can sell the products as their own. Clothing and electronics are also sold that way, sometimes at the same store as groceries. While some retailers choose to have only one brand name that covers all their white label products, others diversify and have similar products sold under different names at different price points to appeal to a diverse range of customers.
White label products can be beneficial for suppliers, retailers and consumers. Suppliers can make and sell more of their products, increasing their profits. Retailers may sell different versions of the same product at price points that suit different types of customers. Consumers get to choose between different products and know that the quality of the store brand should be good. Businesses that outsource services get to save time and money that would go into staffing a department.