White Label Product

What is a 'White Label Product'

A white label product is 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.

BREAKING DOWN '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. Private Brand

    A brand placed on products that a large manufacturer has created ...
  2. Product Line

    A group of related products manufactured by a single company. ...
  3. Productize

    To take a new service, product or product feature - that a company ...
  4. Contribution Margin

    A cost accounting concept that allows a company to determine ...
  5. Brand Equity

    The value premium that a company realizes from a product with ...
  6. Flexible Manufacturing System - ...

    A method for producing goods that is readily adaptable to changes ...
Related Articles
  1. Markets

    What It Takes To Be "Made In The USA"

    Discover the rules and standards behind the "Made in the USA" label.
  2. Markets

    Understanding Marginal Cost of Production

    Marginal cost of production is an economics term that refers to the change in production costs resulting from producing one more unit.
  3. Financial Advisor

    How to Create a New Financial Product in 10 Steps

    The 10 steps outlined here are essential to the creation of a new financial product.
  4. Entrepreneurship & Small Business

    Explaining Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent.
  5. Markets

    Global Manufacturing: Exploring Revenue Trends and Fundamentals

    Learn about the significant global trends influencing the manufacturing sector, and the effect these trends are having on both emerging and developed countries.
  6. Entrepreneurship & Small Business

    Understanding Marketing

    Marketing includes all of the activities of a company associated with buying and selling a product or service.
  7. Markets

    Vital Link: Manufacturing And Economic Recovery

    Manufacturing output is one of the clearest signs that an economy is recovering from a recession.
  8. Entrepreneurship & Small Business

    Understanding Product Differentiation

    Product differentiation is a marketing tool companies use to distinguish their products or services from the competition’s.
  9. Markets

    Is a U.S. Industrial Recession on the Horizon in 2016?

    Find out why the industrial economy may be teetering on an industrial recession and what could prevent it from going over the cliff.
  10. Markets

    Why a Strong U.S. Manufacturing Industry Matters (UTX)

    Consider manufacturing’s contributions to employment and GDP growth by engaging other industries, both upstream and downstream, from the manufacturing process.
RELATED FAQS
  1. What are some ways a company can expand its product line?

    Understand what a product line is and why it's important. Learn about specific ways in which a company can expand its product ... Read Answer >>
  2. What are the differences between product bundling and product lines?

    Understand the differences between product bundling and product lines. Learn why a company would want to expand its product ... Read Answer >>
  3. How is a product line depth related to a product line?

    Understand what a product line is and why it's important to a company. Learn how product line depth is related to a company's ... Read Answer >>
  4. Is there any way to reverse the law of diminishing marginal returns?

    Learn more about how consumer spending, supply and demand impact production decisions. Find out more about the law of diminishing ... Read Answer >>
  5. What are the similarities between product differentiation and product positioning?

    Learn how two marketing strategies, product differentiation and product positioning, are similar and work together to effectively ... Read Answer >>
  6. Do production costs include the marginal cost of production?

    Learn more about marginal costs of production and production costs. Find out how businesses can use marginal cost calculations ... Read Answer >>
Hot Definitions
  1. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  2. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  3. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  4. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  5. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  6. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
Trading Center