White label refers to products or services that are produced and designed by one company specifically for the purpose of being rebranded and sold by another company. This approach allows businesses to offer a range of products or services to their customers without having to invest in the research, development, and production of these items themselves. Instead, they can simply purchase white label products or services from a supplier and rebrand them as their own.
There are several advantages to using white label products or services. One of the main benefits is that it allows businesses to quickly and easily expand their product or service offerings without having to invest significant resources in development. This can be particularly useful for small businesses or startups that may not have the necessary expertise or resources to develop their own products. Additionally, white label products or services can often be purchased at a lower cost than if a company were to develop the item themselves, making it a more cost-effective option.
However, there are also some potential drawbacks to white label branding. One disadvantage is that companies may have less control over the quality of the products or services they are offering, as they are reliant on the supplier to provide these. Additionally, companies using white label products or services may have a harder time building a unique brand identity and differentiating themselves from their competitors.
Overall, the decision to use white label products or services should be carefully considered by businesses based on their specific goals and target audience. In some cases, this approach can be a useful way to quickly and easily expand a product or service offering, while in others it may be more beneficial to invest in developing and promoting a unique brand identity.
A firm with competitive advantages in manufacturing but no ability to promote and distribute products may specifically design products to be branded by third parties. Such products may be delivered unpackaged or in plain packaging that can be branded with a label.
In some cases, a firm with deep manufacturing and marketing capabilities will produce products for another brand, such as a store brand. In this situation, the same exact product may end up being sold side-by-side at different prices.
Software services are easily rebranded. It is common for business, infrastructure and consumer information technology to be branded by multiple marketers. For example, a brand selling cloud computing services may be a reseller with no infrastructure or technical capabilities of their own.