Awhite-label productis aproductor service produced by one company (theproducer) that other companies (themarketers)rebrandto make it appear as if they had made it.[1][2] The name derives from the image of a white label on thepackagingthat can be filled in with the marketer'strade dress.White-label products are sold by retailers with their own trademark but the products themselves are manufactured by athird party.[3]

Common use

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White label production is often used formass-producedgeneric products including electronics,[4]consumer products and software packages[5]such as DVD players, televisions, and web applications. Some companies maintain a sub-brand for their goods. For example, in theUnited Kingdom,the same model of DVD player may be sold byDixonsas aSaishoand byCurrysas aMatsui,which are brands exclusively used by those companies.[6]

Some websites use white labels to enable a successful brand to offer a service without having to invest in creating the technology and infrastructure itself. Many IT and modern marketing companies outsource or use white-label companies and services to provide specialist services without having to invest in developing their own product.

Most supermarketstore brandproducts are provided by companies that sell to multiple supermarkets, changing only the labels. In addition, some manufacturers create low-costgeneric brandlabels with only the name of the product ( "Beer", "Cola", etc.).Richelieu Foods,for example, is aprivate labelfood manufacturing company producing frozen pizza, salad dressing, sauces, marinades, condiments, and deli salads for other companies, includingHy-Vee,Aldi,Save A Lot,Sam's Club,[7]Hannaford,[8]BJ's Wholesale Club(Earth's Pride brand), andShaw's Supermarkets(Culinary Circle brand).[8]

Smallerbankssometimes outsource theircredit cardor check processing operations to larger banks, which issue and process the credit cards as white-label cards, typically for a fee, allowing the smaller bank to brand the cards as their own without having to invest in the necessary infrastructure. For example,Cuscal Limitedprovides white-label card and transactional products to credit unions in Australia;Simpleissued bank accounts anddebit cardsoperated by The Bancorp Bank andBBVA Compassin the United States.[9]

In Southern California,City National Bankis the largest check processor in that half of the state, because in addition to checks issued by its own customers, CNB processed checks[when?]for the customers of more than 60 smaller Southern California banks.[citation needed]

Many software companies offer white-label software to agencies or other customers, including the possibility to resell the software under the customer's brand. This typically requires functionalities such as the adaptation of the software's visual appearance, multi-customer management and automatic billing to the end-customers based on usage parameters.[citation needed]

See also

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References

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  1. ^"White Label Product".Investopedia.RetrievedAugust 13,2015.
  2. ^Drew Gainor (June 3, 2014)."Why A White Label Solution Is Easier Than Building Your Own".Forbes.RetrievedAugust 13,2015.
  3. ^"White Label Product".
  4. ^Evan Blass (July 16, 2012)."Can HTC avoid past mistakes in its latest incarnation?".Mashable.RetrievedAugust 13,2015.
  5. ^Sean Hollister (May 16, 2012)."Ubitus GameCloud: the white-label cloud gaming service seeking a US audience".The Verge.RetrievedAugust 13,2015.
  6. ^Alka Katwala (September 2009)."Fade to White: Trade-Finance White Labels as Part of a Growth Strategy".jpmorganchase.
  7. ^"Richelieu experiences hiring boom, starts expansion".WCFcourier, RC Balaban, August 27, 2006.
  8. ^abLisa van der Pool (23 February 2009)."There's new appetite for peddlers of cheap eats".Boston Business Journal.
  9. ^"Simple: The Bancorp Bank Privacy Practices".
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