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White Labeling Tweet

Where a product or service is produced by one organisation but offered to the public by another.White labelling is used in a wide variety of industries including food, technology and financial products.

Examples of white labeling within the food industry

Many supermarkets offer own brand label products. There are two ways of doing this.

1. Either the supermarket will select a producer who also produces goods under their own name or they will select a producer who manufacturers goods solely in other organisation names for example Northern Foods within the UK produces many branded and own brand label products.

2. They will use another company to manufacturer the product. In the UK Weetabix produce cereals for the supermarkets and allow the supermarkets to label it as their own brand.

Examples of white labeling within the financial industry

Financial products are offered by many organisations some of these organisations will use white labeling because they do not have the infrastructure required to offer financial products. For example small banks will ask large banks to handle their credit card operations as this is cheaper then dealing with it themselves. You may also get new financial organisations such as supermarkets who want to offer financial products using white labeling, because they do not have the financial licence required to offer the financial services.

 

Advantages of white labeling.

Producer can access a wider market for their goods.

For the distributor they do not have the R&D cost of having to invest in a new product, whilst benefiting from the advantages of having their own product.

 

 

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