White-Label Product
A white-label product is a product or service produced by one company that other companies rebrand and sell as their own. These products are typically manufactured by a third-party supplier and are designed to be easily customized with a different brand’s label, packaging, or Marketing. White-label products are common in various industries, including food, electronics, software, and cosmetics.
For example:
- A grocery store may sell a generic brand of canned beans that is manufactured by another company but labeled with the store’s brand name.
- A software company might develop an application that other businesses can customize and sell under their own brand.
In practice, companies benefit from white-label products by avoiding the costs and time associated with product development, while gaining a new Revenue stream. For instance, a small retail store can offer a range of white-label beauty products, allowing it to compete with larger brands without the overhead of creating unique formulations.