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What is Private Labeling and White Labeling in Business???

What is Private Labeling?

These are brands that are owned by a retail store or a retail store that takes the help of the third-party manufacturer to make a brand under its name Private Labeling and White Labeling  .

So, here is how it works.

For example, I have a retail store, and my store contains products from different brands and company names.   That product has my brand name. So, I hope this clears your confusion.

Private labels have a low cost but fetch better margins, which proves to be a lucrative investment.

A few years back, there were certain retailers who used to sell low quality, cheap and generic products, but with time the markets in the UK, US, and Europe have seen drastic changes. They have been transformed into markets with good quality and reliable products.

Below are the private label categories that a retailer can think about to start of its own:

 

Advantages of Private Labeling that you should know:

There only problem with private labeling is that it is a little difficult to build the brand name and loyalty, but it’s not impossible.

What is White Labeling?

In white labeling, the retailers can re-brand this product and can sell it by its own name and branding. The only difference is that all the retailers would be selling the same products with different names. If you are retailing some food item, it would have the same taste what other retailers are having as the manufacturer is same.

You don’t need to spend your quality time in designing and creating the product, you just need to focus on branding the product.

Whether it be Private or white labeling, both the business models are lucrative in their own ways. In both the models, you have a good profit margin.

These business models save time and money and help to focus on areas where expertise is needed which largely impacts on your business growth.