When we are talking about product and business, the label becomes a matter that cannot be forgotten. Well, it is quite reasonable because the label will create the identity of your brand and business. It means people will know your business through the label. About the kinds of labels, do you ever hear about white label vs private label?
Well, both white label and private label are variations of product labeling. Each labeling idea has its uniqueness and benefits. However, it will be better for you to know some details of every label idea before deciding which kind of labeling that should be chosen.
What is White Label and Private Label?
To know about both white label and private label, of course, you need to read the definition of it first. The white label refers to the generic products or services from the manufactures which can be sold by many retailers. This kind of label gives a chance for the retail to repack and rename the product that they sell.
For some companies, it is a good idea of a business that could bring more profit for them. Well, that is true because the company could sell many kinds of products without producing it. Then, the cost of production also could be reduced.
Then, what is the private label?
A private label refers to the product that is requested by the company to manufacture with the specific specification. It could be said that this label is given to the specific product ordered by the company. Of course, there will be exclusivity on the product.
In common, a private label comes in the beauty industry, household items, and other physical products. This label will be effective in stabilizing the brand since the production will be more consistent.
Similarities and Differences Between White Label vs Private Label
As we have said before, every label has its uniqueness. However, to know more about white label vs private label, there are some similarities and differences between them.
Those labels are similar because of the use of third-party manufacturers. It means the company with the different labels need the manufacture as the producer before they sell the product with their name.
On another hand, these labels are the same because there is no trademark from the manufacture. With no trademark, the companies are free to name the product that they will sell.
However, the white label vs private label also has some differences. The very first difference is exclusivity. A private label produces more exclusive stuff and products since the company will deliver the detailed specification. Besides, the white label offers common products with freedom in labeling.
On another hand, the difference between white label and private label is the customization of the product. Here, the private label has a better customization chance than the white label.
As we know, with the private label, the company could send the detailed specification of the product that they want to sell to the manufacture. Besides, when you want to use the white label, you just apply the product from the manufacture whatever the condition is.
Which One to Choose for the Best Label?
After knowing about the details between private label and white label, you may think about which label should be chosen in running your business. Well, before deciding the label that you want to use, please think about the running of a business that you want to have.
Here, when you want to have a simple and more flexible business, the white label can be your option. Through this option, there will be more freedom for you to choose kinds of products to get more profit.
However, when you think that exclusivity is important, the private label is a better option. This idea of labeling also will provide you more control of production, so the result of the products can be more stable.
Well, that is all about white label vs private label. So, which label that you want to choose?