White label ( Rus. White label ) is a concept involving the production of non-marketed products or services by one company and the use of such products or services by another company under its brand (brand) [1] [2] .
History
The name White Label comes from the production of vinyl records [3] , which were issued with a white (clean) label , which could then be applied with the brand image of the company-seller. Very often advertising copies of the records were sent to DJs on the radio and nightclubs before the official release of the records in white packages in order to kindle public interest and more accurately determine the volumes of future production. The packaging design was developed before the release of the plates into mass production after determining the mood of the audience. Sometimes this term was applied to records whose packaging was torn off or covered with a white label so that competing DJs did not know which recordings they used.
On the Internet, the White Label affiliate system was first used in 2001, when a website selling mobile phones online offered other companies a rebranding version of their website. Companies were given the opportunity to register on the site, sell mobile phones and receive a commission [4] .
Application
The White Label strategy is often used for mass production of electronics [5] , consumer products [6] and software packages [7] , such as DVD players, TVs, and web applications. For example, the same DVD player model can be sold under both the Dixons brand and Saisho [8] .
Some websites use the White Label concept to enable successful brands to offer services without additional investment in technology and infrastructure.
Most of the products sold in private supermarkets and grocery stores are provided by companies that sell products to various stores, changing only the labels. In addition, some manufacturers create cheap brand labels on which only the name of the product is written ("Cola"). Richelieu Foods, for example, is engaged in private label production for food companies such as frozen pizza, salads, sauces, marinades, seasonings and salads for other companies, including Hy-Vee, Aldi, Save-A-Lot, Sam's Club, Hannaford Brothers Co., BJ's Wholesale Club and Shaw's Supermarkets [9] .
In addition, sometimes large banks issue credit cards for smaller banks through the White Label system for a fee. This allows small banks to offer customers their own cards without additional investment in the necessary infrastructure. An example is Cuscal Limited, which provides White Label cards to credit unions in Australia, or the Simple Bank in the US, which issues bank accounts and debit cards served by The Bancorp Bank [10] .
Notes
- ↑ White Label Product . Investopedia. The appeal date is August 13, 2015.
- ↑ Drew Gainor. Why Your White Label Solution . Forbes (June 3, 2014). The appeal date is August 13, 2015.
- ↑ Jane Fitz. Stamp Collecting: The Mystery of White Label Vinyl . Meoko (March 11, 2014). The appeal date is August 13, 2015.
- ↑ Mathew Haigh . Site seeing review of online retailer UKPhoneShop , Mobile News Magazine (September 16, 2002).
- ↑ Evan Blass. Can you keep it up? Mashable (July 16, 2012). The appeal date is August 13, 2015.
- ↑ Venessa Wong. Miller Lite Brings Back Its White Label, Possibly Also Its Mojo . Bloomberg (September 2, 2014). The appeal date is August 13, 2015.
- ↑ Sean Hollister. Ubitus GameCloud: the white-label cloud gaming service seeking a US audience . The Verge (May 16, 2012). The appeal date is August 13, 2015.
- ↑ Alka Katwala. Fade to White: Trade-Finance White Labels as Part of a Growth Strategy (link not available) . jpmorganchase.com (September 2009). The appeal date is November 22, 2015. Archived November 26, 2009.
- ↑ Lisa van der Pool . There's new appetite for peddlers of cheap eats , Boston Business Journal (February 23, 2009).
- ↑ Simple: The Bancorp Bank Privacy Practices (Link not available) . The appeal date is November 22, 2015. Archived October 18, 2014.