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What is a white label? Simply explained - Practical Tips

What is a white label? Simply explained

by Pramith

“White label” are products that do not have a label and can be sold under their own name. This makes them look like a separate product

White label: What’s behind it

White labels are products or services that are not marketed under the brand of the manufacturing company. Instead, they have a “white label”, i.e. a “white label” or “white label”.

  • One product, several labels: Products or services with a white label can be sold to different companies. These companies affix their own label to the goods and sell them under their own name. This means that white label products are marketed with different labels
  • Examples: For example, credit cards or digital banking services are developed by a third-party provider and offered by several companies under their own name. White label products are also often used in the food industry, which are marketed under different brands. Web hosting services are also an example of white-label services.
  • Not customizable: As white label products are sold to multiple buyers, they cannot be customized. This is the difference to “private labeling”, which is produced exclusively for one buyer and can be customized according to their wishes.
  • Branded and cheap products at the same time: White label services can mean that a branded product has the same content as a cheap product. As a low-cost product can be purchased by a wider target group, sales are higher and the production costs are profitable for the manufacturing company.
  • Build your own business: White labels offer a good opportunity for start-ups or other companies to set up their own business without existing production structures.

More efficiency: advantages of white label products

Companies use white label products for various reasons.

  • More efficiency: Companies that buy white label solutions save time and money. They do not have to invest in developing their own products or services and do not have to make costly decisions in this regard.
  • Concentration on marketing: This allows companies to focus more on target group analysis, branding or marketing.
  • Faster time to market: By using ready-made solutions and products, they reach the market faster and sales are generated more quickly.

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