What if I told you that, within a week, you could sell any product, from cosmetics or cannabis-infused products to food and beverages or laptops? I know, you’re thinking that building a production line and optimizing it takes far more than a week.
And you’re right—it does. But with white labeling, you don’t need to worry about any of that. You just need to come up with a catchy brand, an eye-catching label, and an effective marketing strategy.
Let’s see how this is possible.
What Is a White Label Product?
White label products are products sold by retailers under their own label and brand but manufactured by third-party companies. Oftentimes, the manufacturer creates the product directly with the brand and label of the retailer. White label products can also be bulk ordered or dropshipped.
The term “white labeling” is often used interchangeably with “private labeling,” but there are some subtle differences between the two. Both terms refer to products manufactured and then rebranded or relabeled for another seller. But private labeling most often refers to products that are branded before the sale, usually exclusively by a single retailer. A good example here is supermarket exclusive brands.
Private labeling is also more expensive than white labeling because of the high minimum orders manufacturers typically demand, while white labeling is available to any brand.
White labeling and private labeling are gaining more and more traction. In 2020, the US market share of private label products was 19,5%, and it’s bound to reach new highs, especially since consumers love these products.
It’s not just consumers who love buying white label or private label products. Retailers can see the potential of a higher profit margin with a minimal investment, so they, too, are betting more and more or white labeling. Doing so leaves the manufacturing to the businesses best at that and the selling and distribution to the brands.
Cannabis, health and beauty, nutraceutical products, food and beverage, even alcoholic drinks sellers can take advantage of white labeling. While it may seem like a simple way to turn a profit, it’s not always easy or straightforward.
All the industries above, as well as most direct to consumer (DTC) areas, are highly-competitive. This means that, especially if you sell white label products, you need a strong differentiator. Since other retailers may sell very similar—or even the exact same—product you do, branding and labeling are often where the real difference is made.
Labeling White Label Products: The Key to Success in Crowded Markets
Every study made on the impact of labels says the same thing: they are a crucial differentiator for people looking to make a purchase, with up to 85% of consumers choosing a product solely based on the look of the label or the information it provides.
In white labeling, this becomes even more important. 81% of consumers have tried a new product because the packaging or the label caught their eye. Oftentimes, this is all you need to do to get a customer to switch to your brand.
In fact, even when it comes to alcoholic drinks or beauty products, people sometimes care more about the appearance of the package than about the product inside. Consumers reportedly enjoy a wine more if they think it’s more expensive. They aren’t just willing to pay more for it—it seems to taste better. Brain scans taken while they were drinking an expensive product showed that they truly enjoyed it more than its cheaper counterpart.
How can you get customers to pay more for your white label products and, more importantly, enjoy them more? It’s quite easy: by crafting the right brand and label.
A simple, clean label with typographic central elements will attract a younger crowd. Add embossing and luxury fonts and you’ll be all set to catch the eye of a more mature audience that’s looking for a touch of classic luxury.
With cannabis-infused products, for example, you can also play with the colors and the finishes. Simply opting for a gloss finish instead of a matter one will help you appeal to another audience. Bright, vibrant colors are more likely to attract young consumers. Change to a classic black label with hot stamping and you’ve suddenly switched to a more expensive product, created for connoisseurs. It’s all in the details.
AWT: Your Partner for Making White Label Products Shine
At AWT, we have a vast background in working with white label products and helping their sellers choose the right approach. We do more than print your labels: we help you find the best way to catch the eye of your ideal audience, all without breaking the bank.
Our label specialists offer free consultations and are always ready to help you choose the proper paper stock, finishes, colors, sizes, and more to stand out in the crowd. With our expertise, you’ll always have the perfect balance between an eye-catching label that offers the right information, without compromising branding.
Learn more about our labeling solutions and let’s talk about making your white label product a star!