White label products are made in a central facility and labeled with various company names. This practice is used by disc jockeys and grocery stores to build brand loyalty. White label manufacturers focus on cost containment and can streamline production, but consumers may have difficulty obtaining information about the products. Recalled white label products can be difficult to track down, potentially putting consumers at risk.
White label products are products that are manufactured in a central facility and then labeled with a variety of company names. For example, a producer producing track mixes might create a large batch of track mixes, package it, and then divide the batch into groups that will be labeled “Company A Brand Trail Mix”, “Company B Brand Trail Mix”, etc. Street.
The term “white label” is a reference to a practice widely used by many disc jockeys and aspiring musicians. To hide the identity of the company pressing a record, people would peel off the old label and put a generic white label over it.
Many stores use white labeling to build brand loyalty. For example, by using white label, grocery stores can create a line of store brand products, and because white label products are often less expensive, consumers are encouraged to buy them. Thus, consumers begin to attach themselves to the brand of the store, making an active effort to shop at that particular store and to purchase its products when offered a choice between several labels.
For companies producing white label products, the practice has some distinct advantages. These companies may focus on cost containment of production, rather than marketing, as these products have an integrated market. Instead of looking for stores to carry their products, white label manufacturers can wait for customers to come to them. They can also streamline production by producing huge batches of products.
For consumers, white label products have advantages and disadvantages. A distinct advantage is that these products tend to be much cheaper than branded products, and sometimes the quality is comparable. However, the downside is that it is more difficult to obtain information about products and the companies that produce them.
Lack of information about a product can be problematic. For example, people with severe nut allergies like to avoid products made in facilities that contain nuts, and this information may or may not be disclosed on a white label product. Other consumers want to practice ethical buying habits, and because the manufacturer of a white-label product is often not disclosed, they have no way of telling whether or not the product fits their values.
Given the growing number of recalled products, white label or generic products are a growing hot topic for many consumer activists. Since many manufacturers keep the identity of their customers secret so that Company X’s customers do not realize they can get the same thing from Company Y, it may take some time to inform all people who have purchased a product from a recall . In cases where white label products go through multiple companies, it may be impossible to inform everyone of a recall. Besides being potentially dangerous, this can also be frustrating for consumers.
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