What is a White Label Product? 

White label products are such products that are manufactured by a third party and are sold by the retailer with their own logo and brand. White-label branding has been growing steadily since the 1990s and has become a worldwide phenomenon. The primary benefits include- it saves company’s time, money, energy, and brainpower. As a matter of fact- if a company produces on its own and does all the other things like marketing, promotion, etc. the company will have to incur a lot of expenditure but if the company chooses white label branding, it will down the cost of production and you will not have any pressure of production and you will be able to focus on the other aspect of the business. 

Understanding a white-label energy drink 

Energy drink white label are produced by a third party and not by the company that sells them. The major advantage is that you don’t have to go through the whole process of manufacturing and selling the product i.e., the third party will take care of the production of the energy drink while you can focus on marketing. In this way, each party is concerned with only that part of the business in which they have experience and expertise. 

The primary advantage of white-label branding is that it saves time, money, and, energy of the business. Another benefit is that the cost of production does down. The company produces in large quantities with expertise and specialization, hence reducing per unit cost and increasing the profit margin. 

White label brands are becoming famous, which indicates that consumers are becoming more sensitive to price and lesser loyal to their favorite brands. In many countries, the popularity of white label brands is hurting other bigger brands’ market share. 

A few of the terms that white label agreement contains are mentioned here: 

• Relationship between reseller and producer 
• Rights as well as obligations of both producer and seller 
• Product manufacturing details 
• Fees, pricing 
• Quality control 
• Packaging and documentation 
• Taxes 
• Product Warranty 
• Marketing and promotional material 
• Terms of payment 
• Record keeping 
• Limitations, liabilities, and, insurance 
• Training 
• Customer support 
• Repair service 
• Intellectual property rights such as confidentiality, government laws, and, terms of termination, etc. 

Advantages and disadvantages of white label products 

The white label branding has both advantages as well as disadvantages, a few of them are mentioned below: 

Advantages 

Expanded product lines: Companies can take advantage of white labeling in order to grow and expand their offerings to attract more and more customers. The company gets the goods at lower prices due to economies of scale. 

Quality: You not only get goods at low cost but also don’t have to compromise with the quality. The goods produced are of high quality as the goods are produced by a highly knowledgeable and expert team. 

The best reward for investment: Investing your hard-earned money in an experienced team is a wise decision. You get the best reward for your investment in the form of low cost and high profit. 

Disadvantage 

Copycatting: Copying the packaging of other brands is called copycatting and is illegal in some cases. White-label brands sometimes copy the packaging of other similar products. 

White labeling business has gained huge popularity. This has allowed several businesses to expand their business. It has also led to specialization in the business as each party has better-defined roles.