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What is White Labelling?
White Labelling refers to the practice of marketing a product by a company, the manufacturer of which is a different company. White labelling is used in a variety of industries including food, technology, and also banking and finance.
White labelling is widely used by supermarkets and hypermarkets, who offer products under their own name. It is also known as private labels. Such supermarkets, usually use another company to manufacture the products, which they sell under their own name. The practice is also followed in finance industry where small banks may ask larger banks to handle their credit card operations for a fee.
The Advantages of White Labelling
The advantages of white labelling are work both ways.
The manufacturer benefits from greater product reach, and a wider market base for the goods. The marketer does not have to spend on R&D, whilst benefitting from the advantages of having their own product.