White Label Product

AAA

DEFINITION of 'White Label Product'

A product manufactured by one company that is packaged and sold by other companies under varying brand names. The end product appears as though it is being made by the marketer, when in reality it is being created by the manufacturing company.

In this case, the manufacturer can concentrate on making the product or service and focus on cost savings, rather than worrying about marketing, which will be handled by the companies that will sell the product.

INVESTOPEDIA EXPLAINS 'White Label Product'

A common example of a white label product can be found in your local supermarket. You may have noticed that many of these stores have their own brand-name products, which usually sell at a discount relative to other well-known brands. The store-brand product is actually created by a manufacturing company that places the store's label on the final product in an attempt to make customers think it was created by the vendor.

RELATED TERMS
  1. Strategic Alliance

    An arrangement between two companies that have decided to share ...
  2. Joint Venture - JV

    A business arrangement in which two or more parties agree to ...
  3. Vertical Integration

    When a company expands its business into areas that are at different ...
  4. Original Equipment Manufacturer ...

    1. The original definition: a company whose products are used ...
  5. Marketing

    The activities of a company associated with buying and selling ...
  6. Partnership

    A business organization in which two or more individuals manage ...
Related Articles
  1. Fundamental Analysis

    Great Expectations: Forecasting Sales Growth

    Predicting sales growth can be something of a black art, unless you ask the right questions.
  2. Fundamental Analysis

    Measuring Company Efficiency

    Three useful indicators for measuring a retail company's efficiency are its inventory turnaround times, its receivables and its collection period.
  3. Professionals

    Advertising, Crocodiles And Moats

    Memorable advertising is a brick in the fortress that keeps competitors at bay.
  4. Economics

    What is Value Added?

    Value added is used to describe instances where a firm takes a product and adds a feature that gives customers a greater sense of value.
  5. Economics

    What is a Wholly Owned Subsidiary?

    A company whose common stock is 100% owned by another company, called the parent company.
  6. Economics

    What is the Breakeven Point?

    In general, when gains or revenue earned equals the money spent to earn the gains or revenue, you’ve hit the breakeven point.
  7. Investing

    What's Marginal Revenue?

    In microeconomics, marginal revenue is the additional revenue generated by increasing sales revenue by one unit. Another way of saying this is that the marginal revenue is the revenue generated ...
  8. Investing

    What is the Debt-To-Capital Ratio?

    The debt-to-capital ratio is used to measure a company’s use of financial leverage. The ratio is the company’s total debt, divided by the sum of the company’s equity plus total debt.
  9. Investing

    Understanding Accumulated Depreciation

    Depreciation is a rough approximation, in dollar terms, of the wear and tear on an asset. So the accumulated depreciation is the aggregate of the wear and tear on the asset from all prior time ...
  10. Professionals

    What is Backward Integration?

    Integration happens when one company owns another business in its supply chain.

You May Also Like

Hot Definitions
  1. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  2. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  3. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  4. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  5. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  6. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
Trading Center