What is a White Label Product? - Definition & Overview

Instructor: Beth Hendricks

Beth holds a master's degree in integrated marketing communications, and has worked in journalism and marketing throughout her career.

Maybe you call it a store brand or a generic, but what you're really referring it is a white label product. In this lesson, we'll define the white label product and learn more about what white labeling entails.

Buying the Store Brand

You've probably been guilty of this one: Walking down the grocery store aisles, you spot your favorite name-brand cereal. Just as you're about to pick it up and put it in your cart, you spy a similar looking box right next to it. It looks the same, seems the same, even the name is pretty close to the original. Plus, you can save a few extra bucks. You throw the store brand cereal in your shopping cart and head toward the checkout.

White label products are rebranded under a new seller
store brand, private label, white label

Sound familiar? Every day, all over the country, savvy shoppers are making the decisions to forego the name brand, ditch the coupon and try the store brand product: peanut butter, pickles, cheese, you name it, most every product has a ''generic'' equivalent.

You've just made a white label product purchase.

What's a White Label Product Anyway?

No, a white label product doesn't have a white label (although it could), but it's simply a general term to describe a product purchased by a company that has intentions to rebrand it and sell it as their own. Think about some of the white label products you've seen and probably didn't even realize it: Walmart has both an Equate and Great Value line, Target uses Archer Farms and Up & Up, and Walgreens has a white label line they call Nice!

Pros and Cons of White Labeling

The concept of white labeling has numerous benefits, as well as disadvantages for both businesses and consumers. Let's take a look at a few.

For Businesses

For businesses like Walmart, Target and Walgreens, white label products allow them to offer more variety to consumers. Additionally, by buying products mass-produced elsewhere and branding them under their own line, businesses can stock their shelves and save the cost associated with producing the items themselves.

Also, companies that white label products can draw their own following, with loyal customers returning to your store to find your own labeled products. This is a great scenario because if the item is your own brand, consumers cannot go elsewhere to find it.

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