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White labelling or white label manufacturing is a process whereby a retailer, someone who wants to purchase a product for resale, contracts with a manufacturer of the product who agrees to sell that product to the retailer for rebranding using the retailer’s unique brand and packaging designs. Under the white label manufacturing agreement:
As an example, let us say a retailer wants to offer a generic brand of pain relief medication which they will uniquely brand using their logo, color scheme, style, and packaging design. They would contract with a white-label manufacturer of pharmaceutical products who then would take their generic product in pill or capsule form, for example, ibuprofen, and work with the retailer to implement a packaged and labeled run of the generic product for sale to the retailer. From the perspective of the manufacturer, their main production line remains unchanged except for the packaging and labeling process.
In some cases, there may be a reseller in the middle who acts to create the branded white label product by taking the generic product from the white label manufacturer and handling the packaging and labeling process to create the final branded product which is then sold to retailers for sale to end customers. If the retailer is a larger organization, they may work directly with the generic product manufacturer to create a white-labeled product in lieu of working through a reseller.
The term white label is believed to have its origins in the record industry. Before the age of digital music, vinyl records were manufactured and sold at retail outlets. Before a record company mass-produced new music on records, they would create promotional copies of new recordings, then deliver those in sleeves with white labels on the records to radio stations, disc jockeys, nightclubs, and other venues as a way of gauging the interest in the new recording. This practice helped record companies make an estimate of how many records to press based on the perceived popularity of the white label promotional copies.
Besides physical products, white labeling is also a popular approach that has been adopted in technology companies, allowing for the reuse of technology platforms that have been developed by tech companies under the look and feel of a third party’s brand and style elements. Many licensed applications sold under a Software-As-A-Service (SAAS) model can be viewed as a type of white labeling. So, a software technology development company may create and market a software product that can be branded for use on a customer’s website. One such example of this would be an e-commerce platform. If a retailer wanted to implement an e-commerce channel on their website to sell products online, they could avoid the large upfront development costs by using an existing technology platform which they license from a software development company, one which comes ready-made with the needed functionality and which can be branded to match the look and feel of the retailer’s website style elements. The existing licensed software would be considered the equivalent of a generic physical product in the sense that the retailer accepts the software “as is” or “out-of-the-box” without customization other than style elements. The software development company sells their generic software to many retailers, each of which are using the same basic product functionality to power e-commerce on various customer sites with virtually no difference other than its appearance on the UI (user interface) or website.
Whether you’re an individual agency owner or run a small OR large size agency, our white label services are designed to GROW your revenue, profit margins, and SCALE your business at every turn without increasing overhead costs.
Start your white label manufacturing project the right way. Small differences between white label products can make a huge difference regarding price and quality. Build your own brand and get custom packaging using our white label manufacturing solution. Avoid intellectual property right (IPR) infringements, insufficient product certifications, bad customs research and poor white label manufacturer choice.
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