Running a store or an online shop means selling certain products from certain manufacturers. In very many cases, these goods are so-called branded goods. In other words, brands that belong to a specific trademark or label. But that doesn’t always have to be the case. There are also goods that come under the so-called white label.
What does white label mean?
With white label you designate products that do not have a label or are sold with different labels. This means that certain products or services do not come onto the market under the brand of the actual manufacturer. White Label comes from English and translates as “white label”. These products come to you from the manufacturer without a label, for example, and have neither a name nor a label. This enables you to sell these goods under your name.
White label products range from food to clothing to electrical appliances. The buyer perceives such a product as your product, even though it was manufactured by another company. The ideal case is that the customer cannot identify any connection to this manufacturer. White label products are also known as white products.
What is white label branding?
White label branding basically has the same meaning as white label itself. Here, too, products or services are manufactured and under the umbrella of the respective brand. The goals are clearly formulated.
- Improving customer loyalty
- Building trust
- Saving resources and time by saving new developments and new solutions
Benefits for startups
But what significance does white label branding have for you in terms of the growth of your company? Above all, as a founder, you benefit from a startup or a completely new founder. At this stage in their entrepreneurial career, very few have already been able to build up a brand name with which they are competitive on the market. It cannot be ruled out that, as the founder of a startup, you may offer better services or products than is the case with well-known brands. But the problem is, as has been shown again and again, the very difficult marketing. So to push your sales, the white label products are a very good alternative.
Benefits for companies
Even companies that have been successful in the market for a long time can benefit from white label branding. With this approach, you can, for example, follow the path of primarily concentrating only on development. Resources that you have previously invested in marketing or sales will no longer be accumulated to this extent. The white label business is a model where you focus on a product or service that is made by a company but sold by you.
In addition, you have the advantage that you hardly have to make any upfront investments. The manufacturer does this for you, regardless of whether it is the procurement of licenses for software or logistics. You can implement your company quickly and easily so that the product is adapted to your brand. After a short time you can start selling the products or services.
How does white label branding work?
The company that manufactures the White Label products develops a so-called “plug-and-play product” for you. This can, for example, be a white label platform, for example your own website . The next step is to adapt this product to your corporate identity . You have many options for designing the website.
- you can add your company name or your logo
- Symbols of your company can also be inserted
- You can insert URLs and text components
- Your company’s email addresses can also be transferred to the website
These possibilities will help you to ensure that all of the mentioned aspects are associated with your own brand. If this not exactly laborious adjustment has been completed, you can start selling the products with white label. This happens entirely on your own terms.
For which companies is the white label solution suitable?
According to Gradinmath, young founders and startups in particular can benefit from the white label solution. But even as an already successful company you can certainly benefit from it. This alone shows the fact that most companies cannot afford their own production. Producing everything on your own simply devours a lot of money and also involves a high level of risk. That is why White Label is a good solution for smaller companies or for medium-sized companies. There are many reasons for this.
That speaks for white label products
- Technical questions related to the development of white label products are dealt with by the manufacturer.
- You don’t need to do any support or maintenance yourself.
- You get a shop or a website according to your wishes at no cost.
- White label is possible for many types of products or services from a variety of industries.
- You save costs, time and technical management
Reasons why manufacturers rely on the white label solution
The white label solution is not only beneficial for you as the founder. The manufacturers themselves also have a few reasons to rely on it:
- The manufacturer only wants to focus on building the brand or on developing innovative strategies that relate to customer service.
- Special licensing or registration is required for production.
- Part of the cost of buying media should be saved through the white label business.
- The company plans to enter a new line of business. This means that a competitor in another segment can be beaten.
- The company itself is small. But there are enough funds available to start another company.