What is white labeling?
White labeling means mass-producing products that can be customized to some extent by other companies. White label products provide companies with the opportunity to bring mature products with their brand quickly to the market while focusing their competencies outside of product development.
Table of contents
- How does white labeling work?
- Examples of white label products
- The benefits of white label products
- How to choose a white label partner
White labeling happens when a company provides non-branded products to other companies who sell the products to end customers as if they were their own.
In this sense, white label products are developed by one company but sold without any branding to resellers.
The resellers are offered the opportunity to customize the products with their own logo and brand identity. This way, the customers of the resellers associate the products with their business.
How does white labeling compare to in-house product development? Get an overview here.
White labeling is a widespread practice in multiple industries.
A common everyday life example is grocery stores that add their brand to convenience goods, which are actually produced by other companies and sell the goods as if they were their own.
In relation to technology, white label products are offered in both software and hardware.
White label software
Often white label software is sold in a software as a service (SaaS) way. The company buying the software from the developer usually adds its own logo and sells the service with a monthly or annual fee.
White label hardware
White label hardware is products that are designed and fully developed by one company and sold without the company’s brand to resellers.
In the field of the Internet of Things (IoT), examples of white label hardware include hubs, sensors, and actuators that can easily be integrated into an end-to-end IoT solution.
Develco Products is an example of a provider of white label IoT hardware to companies offering end-users intelligent solutions in the industries of home care, security, insurtech, and energy management.
Focus on your core business
With white label products, you can focus on what you do best. With a white label strategy, you can provide the products that your customers demand without doing anything outside of your core business.
Gain a competitive advantage
By not having to develop all sorts of products yourself, you can provide your customers with a broader product portfolio and quickly gain a competitive advantage.
Outpace your competitors
As you don’t need to spend time on developing, testing, and validating the products, you will be way ahead of competitors who chose the strategy to do all of the development themselves.
Scale your business fast and easily
With the right white label provider, you have the opportunity to scale your business according to market demand - without being limited by product development resources and production capacity.
5 key considerations when choosing a white label company as your provider:
Is it a dedicated partner?
As you will enter a long-term business partnership with your white label provider, finding the right match is crucial for the success of your project. Team up with someone who is dedicated to helping you reach your goals and further your business.
Do they offer high-quality, mature products?
As your brand will be associated with the products, it is important for you to find a provider of high-quality products. By choosing a provider of mature products that have been tested and validated in large volumes, you will minimize the risk of your business.
Are they experts in their field?
For you to focus on your core competencies only, you need to partner with experts in the field of the white label products that you would like to include in your business. Partner with someone who brings extensive knowledge and expertise to your project.
Do they have a pilot program?
A pilot program allows you to test the product quality and the fit for your business. By performing the tests, you will be confident in committing to a long-term partnership with a white label company. The willingness to let you test the products also discloses a level of trust from the white label provider towards your company.
Is it possible for you to scale up in the future?
One of the benefits of using white label products is that you have the possibility to scale up your business fast and easily as you will leverage the capacity of an existing production plant. For this reason, it is vital to ensure that the white label provider actually offers the needed capacity to support you in scaling up.
Looking for a white label hardware partner for your IoT solution?
Since 2007, Develco Products has provided companies within the fields of security, home care, insurtech, and energy management with white label IoT hardware.
Our product portfolio includes a wide range of market-ready and mature devices, including gateways, sensors, alarms, smart plugs, and power monitors. With our Evaluation Kit, you have the possibility to test the functionality of the products before proceeding with your project.
We offer extensive knowledge in wireless technology and provide our customers with professional technical support throughout their projects.
Our white label concept allows you to easily customize the products and make them fit your company seamlessly.
Want to discuss your project? Get in touch.