Id | ESLPod_1228_CN |
---|---|
Episode Id | ESLPod 1228 |
Episode Title | Designing a Product Line |
Title | White-Label Products & Services |
Text | "White-label" products and services are products and services that are "manufactured" (produced), created, or delivered by one company, but branded for another company so it appears that the second company actually made or delivered it. White-label products are common among electronics. For example, a white-label alarm clock might be sold under many different brand names, even though all the "units" (individual items being sold) are coming from the same factory. Many people refer to white-label products as "store brands" or "generic goods," especially when referring to "groceries" (food items sold in stores) and household products. Most grocery stores sell generic goods next to brand-name products, and they are usually less expensive, although the quality may not be quite as good. The products are branded for each grocery store "chain" (group of businesses with the same name, in different locations), but the "contents" (what is inside) of the package are actually "identical" (the same; without any differences). "White-label" products are a "win-win" (something that benefits both parties) for manufacturers and for "retailers" (stores that sell items to consumers). The manufacturer can focus on production without worrying about packaging, marketing, and sales to consumers. And the retailer can focus on packaging and marketing without being responsible for research, development, and product quality. Consumers, however, may "have the most to lose" (be at the greatest disadvantages) if they do not realize that the white-label products at one store are identical to the white-label products at another store. If they are not "savvy" (very intelligent and clever), they might be paying more than they want to for a product that they could obtain for a lower price at another store using different packaging. |
Topics | Business |
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