Private Label vs. White Label for Brand Growth
USA Link System
Brand success is our state of mind. #1 Digital Marketing Agency in SFV #8 Digital Marketing Agency in LA
Shoppers now have more methods and options than ever to find the perfect product to fit their needs and desires. With so much authority to choose in the hands of customers and so many elements influencing purchasing decisions, how can retailers keep revenue flowing in? We take a deep dive into how larger retailers, like Whole Foods offering 365 brand products, benefit from private labeling while others may benefit more from white label services as we offer here at USA Link System. Explore your options with us!
Private Label Marketing vs. White Label Marketing
When a brand is first getting started, it can be easy to think that all products are conceptualized, created, and produced all within the same company, plant, warehouse, etc. However, not every business has the luxury of being able to manage every piece of the production puzzle themselves, or it could be much cheaper to outsource certain elements that can be crafted in bulk to another company.
In both cases of private label products and white label services, some companies simply want to focus on finding, marketing, and selling particular goods, products, and services rather than focusing on manufacturing the elements themselves. Now is the time to choose your path!
What is a Private Label?
Walking through a grocery store or other major retailer, you’re likely to see big brands you recognize and then “store brand” products that are sometimes cheaper than “name brand” options. Otherwise, known as “generic brands,” private label products are a store’s way of offering goods it knows its customers want and need at more affordable prices that aren’t burdened with manufacturing costs or other elements “name brands” face by having all of the elements under their operation.
These retailers secure an exclusive manufacturing agreement to sell products under this “generic” label in bulk to their customer pool.
How Does Private Labeling Help Customers?
Savings can either be passed directly to the customer, resulting in those lower prices, or can route back into the profit margin. However, it’s important to note in the traditional brick and mortar sense, most customers usually recognize private label products directly from retailers by seeing them on the shelves next to “name brands.” Whether their favorite brand is out of stock or whether the customer is facing sticker shock at rising prices from bigger brands, having a private label option available recoups that revenue and keeps it within the retailer’s pocket rather than losing that sale altogether.
How Does Private Labeling Help Companies?
Reliability, affordability, and relatability to the brand’s simple savings, retailers like Whole Foods offering 365 brand products that include everything from olive oil to napkins and several other pantry staples means extra options to diversity assets and ultimately revenue.
While there is a lower amount of brand loyalty or awareness for private label products, there’s also less risk and less to manage other than making these products available at the right place at the right time to the right demographics, which in today’s digital age is easier than ever!
Potential Private Label Problems
It’s possible to start a private label brand even if you don’t own a major retail outlet (be it in person or via eCommerce online) but without access to that kind of audience's reach off the bat, the onus would then be on your private label to source that traffic and drive it in, which might prove difficult for a first-time enterprise. This is where white labeling can make a difference.
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What Makes Something White Label?
If private labeling means outsourcing production to create a product, doesn’t that sound a lot like white labeling? In many respects, yes! Both private-label products and white-label products involve selling products not independently produced by the company selling the product. However, white-label products differ because the same bulk services can be branded and/or sold by various retailers, brands, and the like. The exclusivity of private label production fades away with white labeling, leaving room for customizations and benefiting from the same cost-saving benefits but adding the layer of profit from being able to market and promote the product under your own banner to create exclusivity through branding.
What About White Label Services?
Luckily, as a marketing and business process outsourcing company ourselves, we know how much smaller businesses can benefit from leveraging white-label services to get a business up and running or help take it to the next level.
White-label marketing, for example, can take your idea from concept to prototype much more quickly than stumbling through each step individually. In fact, as experts in this field, our teams can handle the leg work of creating brand collateral, designing logos, building brand awareness, attracting audiences, structuring your website, and running your eCommerce storefront from your own app or portal all in-house while you simply watch your ROI skyrocket!
Just because other brands and businesses may be benefiting from the same cost-cutting measures doesn’t mean you shouldn’t try white labeling for your business. Instead of reinventing the wheel, let our team get the ball rolling while you keep dreaming of the next big thing audiences need!
How to Market White Label Products or Services
Distinguishing your white label in a sea of competitors ready and willing to use the same is key to a successful strategy, but what does that look like?
Ready to Get Started?
Branding can be tricky no matter what stage of business you’re in, but thankfully, the team here at ULS is dedicated to making processes easier and more efficient for brands of any size! We offer all sorts of customizable services to suit any business need in the digital space and beyond! Contact us today for your free consultation to see how we can best partner with you to support your goals.