White labeling is a manufacturing strategy adopted in large numbers several decades ago, primarily by grocery stores, and then quickly followed by other retailers. In order to establish brand loyalty, grocery stores in particular would commission other manufacturers to create products for them. These would then be labeled with the store’s label, rather than that of the initial manufacturer. Since shoppers could only get the store brand items at that particular store, the hope was to inspire customers to maintain loyalty to a particular store or company.
Consumers can see many examples of white label products at grocery stores and at other retail outlets. Trader Joe’s, for instance, carries a significant number of store brand products that are labeled “Trader Joe’s.” These are usually offered at prices much less expensive than “brand” name labels, but the quality is frequently comparable if not better than those things sold with a different brand. In fact, especially in specialty markets like Trader Joe’s, shoppers may be getting a considerable deal on high end products.
White label product types aren’t only restricted to food. Many huge retailers, big box stores, and the like now have their own exclusive brand. Not every store brand product is created equal, however, and some are cheap knock-offs of better quality brand names. Still, many do represent similar or better quality than brand name products.
It may be hard to get a store to disclose the original manufacturer of a white label product. In a way, this is not in the interest of the store, since the shopper then knows where else he or she can purchase the product. Other stores are more open about manufacturers, and this has become especially important in regards to food manufacturing.
Consumers who buy white label food, particularly since food safety has become such an issue in recent years, may want to know who is making the product. Any recalls of food items often begin with listing the manufacturer of the food, and may not be able to list all labels under which the products are sold. If shoppers know the manufacturer and where the food is grown or made, they can make better choices as a consumer.
Knowing the manufacturer can also help consumers decide whether the white label product is a better value or quality than its brand name competitors, or whether they would not purchase the product because they find the manufacturing company does not meet their standards for quality, safety, or ethics in conducting business. This is a problem, since information on the real manufacturers may be hard to come by. It’s also difficult to find out whether these products support local businesses or sustainable agriculture.
Another trend in white labeling is occurring on the Internet. This is when companies prepackage services or things like e-books, which people can sell from their own sites. The jury is out on whether white label Internet products or services will ultimately prove profitable.
