Updated: October 18, 2019
Selling products is always a challenge, especially for those looking to get into the retail industry. The lengthy process of investing, manufacturing/producing, branding, finding the right retailer, and finally selling product itself can lead to any entrepreneur or business into an overbearing commercial swamp. Not only do you have to deal with simply getting your products sold, you have competitors who can steal away your consumer base. So how do you deal with a competitor selling a similar product to yours with consumers seeing both products side-by-side, weighing their options on whether you or your competitor gets their return-on-investment?
One crucial avenue that some businesses are taking advantage is the strategy of better branding, and one such branding method comes in the form of White Label.
As an integral part of the overall labeling market, white label products are manufactured by a third party and are subsequently bought by retailers who then add their own branding and logos to sell onto their customers to buy. To the curious entrepreneur and/or business owner: what then, are the benefits of these products? How can a white label product provide a boost in sales and cut costs through the lengthy production/retail process?
By purchasing white label products, a business is taking advantage of buying from an expert company who are renowned for producing that particular item. Buying goods to sell through this avenue allows a business to avoid the manufacturing process altogether, which will save a significant amount of time and money.
By saving money on the manufacturing process, retailers can transfer the savings onto the customer which creates value for them. This can strengthen the loyalty between customers and the business, which allows for repeat custom, a technique that supermarkets have become very effective at performing.
Both the manufacturing company and the selling company benefit through the process of white labeling. Although there is a smaller profit margin for the manufacturers, they get a faster payment to cover the cost of creating the product — receiving a quick turn around on their costs.
The selling company, on the other hand, will have to wait until their customers purchase the product in-store or online. Despite the usual hassle of depending on customer engagement for return-on-investment, the retailer gets to set their own profit margins, so they can seek the largest return on their investment and make the most out of white labeling.
The E-Commerce Explosion
A growing alternative to traditional retailing is, of course, online selling. The opportunity for consumer outreach is nearly endless with global retailers like eBay, Amazon, Alibaba, and many others taking the front of the e-commerce world.
Gone are the days of being limited to your retailer’s location. With the growing ease of transportation of goods and increased connectivity among a global market, manufacturers and retailers can find their niche among the whole of the connected human population. Recent innovations in e-commerce have even helped to bring about new trends that are unfavorable to the old standing national brands of yesteryear. Any entrepreneur or business looking make full use of White Label’s growth potential will at least consider how they can open up their product to the global market with online retailers.
But The Question Remains
For any business, whether new or old, there are massive risks attached to bringing out new products to the market. According to Harvard Business School professor Clayton Christensen, over 30,000 new products are introduced every year, 95 percent of which fail.
Why do so many new products fail, and are white label products a way around this?
One of the main reasons why so many new products fail is that they fail to bring something new to the marketplace. So why would a business try and develop their own product from scratch and risk it failing if they can alternatively buy an existing successful product and put their name on it?
Now that you know the power of White Label, use it to your full benefit to smash the competition and harness its growth potential for your company. Whether it be through traditional retail means or through online and e-commerce retailers, the White Label process offers innovative ways to get your product out there to the consumer and be their choice of product over any competitor goods.
Want To Know How To Get Your Foot In The Door?
If your business wants to exhibit your high-quality products, check out what the White Label World Expo can do for you. This U.S. leading event for resellers of white label goods brings manufacturers and white label professionals in front of thousands of market-leading Amazon and eBay sellers, decision-makers from businesses around the U.S. The White Label Expo is not only the place for product exposure but it is also a great opportunity for startups to find the right knowledge, products and services to propel their business in the white and private label sectors.
For White Label Expo Las Vegas sponsorship and exhibiting opportunities, please contact the Event Director John Richard on John.Richard@prysmgroup.com or 702.707.7627 - extension 6004. Register below to secure your Free Ticket and get access to all important information and updates to the show!