White-Label vs. Private-Label

A white label is a product or service that is not offered under your own brand. What exactly does that mean? A white label product or service is produced by a manufacturer but is not offered under the manufacturer's name. This means that the end consumer does not come into contact with the actual manufacturer. The English term "white label" translates as "white label". It symbolizes the white, not yet labeled label of the no-name product. Instead, the product is marketed by one or more other sellers. This means that one and the same product can be offered under different brand names. Manufacturers can thus counteract dependence on a single distribution service.

Who doesn't dream of selling their own products with their own created brand? But how is this supposed to work? Who has a factory to manufacture their own products? And who has any idea how to produce such products? And even if you did, machines and materials would cost a lot of money. The solution for anyone who still wants to sell their own products is called private labeling.

But private labeling is nothing new. The private label business has been around for a very long time. The total turnover of such private labels in the food industry is estimated at 40%, which shows just how big this business model is: the supermarket chains do not act as manufacturers of these products, the production is outsourced to manufacturers and large-scale producers who create the respective product as a product without a "brand" and offer it for sale to various retailers. The manufacturer now brands the respective product as the retail company / private label seller wishes and sells the finished product to the retail company. The company then sells the product on to the end customer as its "own" product. The retail company legally acts as the manufacturer of the product on the market and is therefore also responsible for the product and must comply with all rights and obligations in this regard.

As a retail company, you are not tied to the actual manufacturer. This means that if the sausage from manufacturer A becomes too expensive, the supermarket chain could look for a new producer without jeopardizing the brand. It is even common for supermarket chains in particular to use several manufacturers. This means that a product is not only supplied by one manufacturer, but is split between several, with the supermarket's brand appearing everywhere.

In short, private labeling involves buying unbranded products from large manufacturers, branding them with your own brand and selling the finished end product to the end customer under your brand name and a calculated margin.

The private label business model does not only exist in the food industry, but can be applied to any conceivable product. Whether consumer products, electrical appliances, drugstore items or pet supplies. There are large-scale manufacturers everywhere who create unbranded products for retailers, which can then be sold on as their own products.

In private labeling, large manufacturers purchase products without a brand. The product is then labeled with their own brand and sold. In principle, private labeling stands for the concept of private labels - a tried and tested business system.

In contrast to the term white label, private labeling means that the product is produced exclusively for a specific supplier. This supplier can have the product modified according to his own ideas. This does not work with white label products.

White label products have many advantages - for the manufacturer and for the supplier. The manufacturer can concentrate on development and the provider on sales and marketing. A white label solution often makes particular sense for start-ups and smaller companies.

If you are currently in this situation and want to set up a company or are interested in the options for procuring products, then you have come to the right place. We find the right products for everyone. We are very flexible when it comes to products. From cell phone cases, textile products and e-cigarettes to your own energy drink. We find the right thing for everyone. If you would like to find out more and are interested in working with us, please send us a short message.