Meaning of White Label Part II

Well-known areas of application for white label

There are white labels in many industries. From clothing to electrical appliances to insurance. However, white label plays the most important role in the following three areas.

  1. In the manufacturing industry
  2. On the Internet
  3. In the music industry

Importance of white label in the manufacturing sector

In the manufacturing industry, white label is more common than you might think. For example, you come across this form of business almost every time you shop in a discount store. The meaning and the reasons here in a clear form.

The advantages of white label products
  • The production of white label products makes a lot of sense if you don’t want to set up your own sales department or if you don’t want to use a sales service provider.
  • Products are partly sold by the manufacturer as branded goods and partly as white products. The branded product is sold as an expensive commodity and the white label products ensure that production is fully utilized. Production can be increased and thus demand must also be increased. The manufacturer speculates that this will automatically create different groups of customers who, however, do not notice that both types of products are the same. For example, there are jeans as a no-name brand at a low price and branded jeans are sold at high prices.
  • White label products are sold at a discount store. In this way, a branded product that not everyone can or will not afford becomes a cheap product for a much broader group of customers.
  • The best example is the production of blank CDs or DVDs. Both the branded goods and the white label product are of the same quality. However, they are sold by various retail chains under their names at a wide variety of prices.
  • With such a product, the manufacturer wants to save costs in terms of service and support.

Importance of white label in the music industry

In the music industry, for example, records are given a white label. These records are usually publications that are not authorized. This is the case, among other things, with so-called bootlegs, with test pressing of records or with records that have only a very small edition. DJs speak of white labels when it comes to promo records that do not have a label name.

According to Gradphysics, this procedure also applies to CDs. Often these are records or CD’s that a label would like to bring onto the market, but there is still uncertainty or uncertainty as to whether the customer will actually accept them. That is why music labels distribute these records to the DJs first. They then act as a kind of tester. If the record or CD does not reach the audience, the label’s reputation does not suffer either. If, on the other hand, the product proves to be a hit, the artist’s label and the label name will be put on the record or CD.

Meaning of white label on the internet

White label is becoming more and more important on the Internet. Products or services are included in the offer of partner websites. The visitor to the site considers the white label product to be an offer from the site operator. Manufacturers who are still little known, for example you as a young founder, have the advantage that their product is marketed under a well-known name. In relation to white labels on the Internet, the content presented is less important. Much more important is the functionality that is available.

What is the difference between bootlegs and white label?

Under no circumstances should you equate white label with bootlegs. These are very different terms, even if there is often the opinion that they are one and the same. A bootleg is a music recording that, unlike the white label product, has not been authorized. In very many cases, these bootlegs are created at music events and concerts. As a rule, the distribution of these bootlegs is illegal and this is also known as black press.

But bootleg is not a phenomenon of modern times. The term has its origin from the time of Prohibition in the USA. Back then, forbidden liquor bottles were hidden in the shaft of boots. Bootleg is a term that comes from English and translated means boot leg. But the term to bootleg also means smuggling, which is much more appropriate with these blackmailing.

White Label 2