The White Label Series
We all know what white label products are, so we don’t have to go into definitions and explaining what a white label product is. In the late 1990s, white label products are introduced in the market for entrepreneurs, and it has been growing steadily since its introduction.
The White Label products can make your startup easier, instead of putting all your resources and time into manufacturing, recipe development, compliance, and certifications, you are leaving the most difficult part to a third party, and you can focus on branding and marketing your product.
The steady growth in the white label market segment is giving us more suppliers and manufacturers doing white labels, and some of them can work with your own recipe if you have one.
Market Size
The White Label market is becoming more important every year that nowadays it hurts the national brands, as consumers now looking for white label products as a product of their own because a white label product is easily customizable to the consumer needs not like the big national brands, they need to spend a lot of money and time for introducing a new product in the market that fits the new era of functional and health-conscious food.
As Statista.com wrote in their private label market worth report, “In the United States, private label accounts for 16 percent of the whole retail market of consumer-packaged products and has a value of roughly 140 billion U.S. dollars. In the EU, the size of the store brand market varies significantly between countries. The share of store-brand products in total grocery unit sales was highest in Spain and the UK.”
The easy confusion between White and Private Label
“The distinction between white label and private label are subtle. That’s why these terms are so easily confused”, Brian Cairns CEO of ProStrategix Consulting in New York.
Private Label is a brand sold exclusively in one retailer, for example, if you make your own recipe and formulation of a product and you have an exclusive contract with the manufacturer, it is a Private Label.
White Label is a generic product, which is sold to multiple retails like milk. You and other retailers or sellers have the same exact milk product but under different brand names.
Is White Label a profitable business?
With the renaissance of e-commerce, the white label business is definitely a profitable business. Let me collaborate on that. For our Turkish friends living outside Turkey, 325 grams of Grade a Plain Helve can cost you around $1.25 including packaging, labels, shipping, and it can easily be sold online for $4–5. Here you can find that you made a minimum of 68% approximately as profit margins without deducting the platform and other costs. So, is it a profitable business? yes, it is.
Read more on how you can sell edible beans here: PUT THE LINK HERE.
The Series
In this series, we will talk in detail about the steps of how you can start your own white label product.
The topics that will be covered in this series are:
• From where to start and finding the right product
• Packaging: Things to consider when searching for the right packaging
• Contracting with Suppliers
• How to market your white label product
• Avoiding the mistakes beginners do
• If you want to do a private label, how you can develop a recipe?
By the end of this series, you will find yourself ready to start your own small business with your white label product by getting enough confidence and the right knowledge
Reference
https://www.investopedia.com/terms/w/white-label-product.asp
