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Updated: October 14, 2019
You likely have heard about the phenomenal growth in “white label” and “private label” sectors. While both forms of branding could be considered similar to some extent, some people do wrongly use the terms ‘private label’ and ‘white label’ interchangeably. However, the terms are not synonyms and there are clear differences between them.
Knowing the difference is essential to anyone looking to get involved in this trendy and lucrative business…
What’s the difference?
White Label involves taking someone else’s product and putting your name on it. You are directly selling a product that is developed, controlled and serviced by someone else. The product/service is produced by one company and a different company (the marketers) brand the product to make it appear as if they created it.
Private Label is when you contract with a manufacturer to produce a product to your specifications. This results in the highest possible profit margin, because you are only paying someone else for manufacturing.
What industries do these sectors cover?
White Label and Private Label overlap in the industries they cover. Remember these two labeling sectors are a method to achieve the same end goal, label a product and reach out to the consumer, so it only makes sense that these sectors lend themselves to cover the same markets. Some of the more popular uses of White Label and Private Label include but are not limited to:
What are the advantages between the two?
White Label brands are inexpensive and can generate high profit margins. It is much faster and cheaper to produce than private label, and white labeling your product allows for it to be sold among multiple retailers. Even when you white label a product, retailers can still use their packaging to maintain recognition to the consumer.
Private Label brands, while not as cheap as white label brands, still offer the convenience of generating greater profit margins than national brands. All details of getting the product branded and stocked on shelves are handled with the retailer directly, and manufacturers can feel at ease knowing they have the support of the retailer ensuring their product is branded and put into their stock (think Amazon, Walmart, Target, Etc.). A successful private label acquires a niche audience that reliably buys from the retailer they’ve selected to brand their product.
What are the disadvantages between the two?
White Label is dependent on the quality of the branding agency. An inexperienced agency may create packaging and an overall appearance that can keep customers away; however, a good branding agency can create a brand that outshines any national brand and, if done right, can even create a new trend or following for your product.
Private Label requires the retailer to effectively brand the product to consumers in their storefronts or online venues. If the retailer alters the product’s image too much, consumers may not understand what they’re looking at, but a good choice of retailer will ensure the product blends right in with the retailer’s stock and give a massive boost in sales of the product from its name alone. Knowing what retailer your product works with is key to fully utilizing private label.
What if I’m looking to get into this industry?
First you must know what service/product you are providing for the economy. What role can your business play in the label industry? Whether it be manufacturer, branding agency, retailer, or any part in-between, you must first know what you offer to the labeling process.
Next you need to identify companies that do what you cannot. Are you a manufacturer? Look for branding agencies and/or retailers that have already labelled products. Are you a branding agency? Find manufacturers! Get in touch with them and see what you need to do to get some business going. And it never hurts to do some research and see how the experts get it done.
But where can I find manufacturers/branding agencies I can trust?
Your manufacturer/branding agency or retailer is going to be an integral part of your business, so finding the right company is absolutely crucial. There are two simple options here:
1. Do it the long way...
You can begin researching over 100’s of suppliers/agencies one by one, compare them, analyze prices, understand manufacturing structure, how do they operate, who’s the best match for me, however this process of getting the details right can take months of your valuable time trying to kick start your business growth.
2. Attend the White Label Expo
The good news is that if you’re an individual seeking to start a business or to get ahead of your competition, there is an easier, more time efficient way! Look no further than the very site providing this informative and exciting article. The White Label World Expo offers businesses the chance to get months’ worth of research and deal making accomplished in just two days.
Visit our Why Attend page to see how this event can impact your business. Being a visitor means you will have access to:
-Expert Keynote speakers from the white label and private label world- get free advice from the thought leaders who have been there and done that so you don’t have to make the same mistakes
-Network with over 10,000 like-minded professionals, share successes, failures, and contacts!
-Attend masterclasses- 1-2-1 advice on how to utilize all the latest technologies and services available
-Meet over 350 suppliers, all under one roof, in just two days
-Discover new trends
-ACCESS ALL OF THIS FOR FREE!
-Get your business starting in just 2 days!
For White Label Expo Las Vegas sponsorship and exhibiting opportunities, please contact the Event Director John Richard on John.Richard@prysmgroup.com or 702.707.7627 - extension 6004. Register below to secure your Free Ticket and get access to all important information and updates to the show!
For more in-depth information on the differences between White Label and Private Label, check out these articles we used for reference to create this thrilling yet insightful article:
Difference Between Private Label VS White Label - published by AZCentral
Private Label vs. White Label: How to Succeed Reselling Products - written by Steve Razinski, published by ivetriedthat
8-Figure Private Label Seller Shares His 9 Steps to Success - written By Greg Mercer, published by Big Commerce
Private Label VS White Label - written by Zhané White, published by Sellozo