What is White-label product?
White labeling is nothing more than selling your products, under a different brand. This solution is now becoming more and more popular – not only large companies, but also small enterprises can also use this method. Most often can this system be found in the giants of supermarket chains or cosmetic stores.
Can only products be created as White label?
No – also service companies can take advantage of the opportunity that White labeling provides. Real estate, cosmetics industry or hairdressing salons can operate on an own label basis. E-commerce also reaches for such solutions in cooperation with payment operators.
White Label in practice.
This is a good option for manufacturers who have a finished product and would like to enter foreign markets but are unsure whether they will achieve success under their own brand. As a result of the fact that the product we want to sell will go under a name already known abroad, it will achieve better sales results than without a recognizable branding. The manufacturer has the opportunity to offer the same product to different companies. In this way, it will be sold in the market at an affordable price, as well as in an exclusive store as a higher value commodity.
Who can sell White label products and why is it a good solution?
Currently, this is a very popular trend, not only for large manufacturers. It is also gaining more and more recognition in smaller companies. It both reduces the marketing costs, as well as provides opportunity to see if the idea for the product will sell on the foreign market. This, thanks to the sales channel of an already known company. Yet another advantage is undoubtedly the ability to sell the same product within more than one brand.
What are the disadvantages of this option?
When choosing such a solution, we must certainly consider the limited possibility of modifying our project. That is, if this option will be available at all. The decision on how your product will be sold and what the marketing and branding will look like, belongs to the company with which you will cooperate.
What should you keep in mind when deciding on using the White label method?
As in any case, you should carefully think about your investment idea. If you think that your product can be successful on the foreign market but are afraid of whether it will gain proper recognition under a totally new brand, then selling under the already known trademark is a good idea. Remember that in this case you have less opportunity to interfere in the project, however, all marketing matters are cared for by the company that will sell the product. With White label, you can sell the same product under several brands.
To sum up: White Label offers a lot of possibilities when it comes to sales solutions – it relieves us from the worries related the visibility and popularity of the brand. The appropriate reputation of the company with which we will cooperate and their recognition on the market guarantee us adequate profits.