03.19.10
The Name White-Label Has Came from White-Label Image on the Packaging
Some websites provides white labels to successful brands to enable them concentrate on services
The name (white label products/services) has come from their packaging image. This packaging allows marketers to give their own trade dress to the products. The origin dates back to vinyl records. At that time, DJs used to take out the label from a known record, concealing the actual source of that record from other DJs. In this way, they would create white label record.
When generic electronic items such as televisions and DVD players are produced at the massive scale, the process is called white label production. A number of companies keep a sub-brand for their products and these brands are particularly used by them. For example, you can sell a DVD player model-A from brand-A, which is also sold as model-B by brand-B.
Some websites provides white label software to successful brands to enable them concentrate on services rather than investing in the creation of technology and infrastructure establishment. To list a few examples, Amazon.co.uk ran Waterstones website until recently, while LoveFilm runs Tescos DVD Rental services. Most of the store brand or private brand products in supermarkets are provided by companies which sell to more than one supermarket, bringing change in labels only. Besides, there are some manufacturers who develop generic brand labels of low cost bearing merely the products name (Cola).
Credit-card operations are occasionally outsourced by smaller banks to larger banks. The bigger bank charges fee from the smaller one to issue and process the credit cards as white label cards. This enables the smaller banks to run their own branded credit cards without investing in the infrastructure that would otherwise lead to high operating cost.
