Posted in Marketing and Strategy Terms, Total Reads: 543
Definition: White Label
A white-label service or product can be defined as a service or product which is produced/developed/manufactured by one company (producer/developer/manufacturer) which the other companies (marketers) rebrand in such a way that it looks as their own production. There are several white label products which are manufactured by one company and then packaged and sold by different companies under different brand names.
The end product appears like a production of the marketer which is not the reality. In this type of business operations, the manufacturer and the marketer both can concentrate on their core competencies and mutually benefit from each other. The manufacturer/producer can focus on the quality of the service/product and cost reductions instead of perturbing about marketing. Similarly the marketer can concentrate on marketing of the end product instead of worrying about the production. This is a mutually beneficial setup for both the parties. There a lot of white label products sold by different companies in the current market.
For Example -
1) There are so many companies like Micromax, Lava, Karbonn etc selling Android OS powered smartphones. This Android Operating System is created by Google and not by these companies. They procure the parts, assemble them and boot them by Android OS to sell them as smartphones.
2) There are a number of departmental stores like Big Baazar, Reliance Fresh etc which sell grocery items like sugar, rice etc under their brand name which is essentially produced by some other firm.