As businesses continue to become more digitalized, globalized, and interconnected, many entrepreneurs are searching for ways to simplify their business model. They are looking for effective and efficient ways with which to make their products and services stand out, for their products and services to be branded and readily identifiable, with a unique point-of-difference that sets them above and apart from their competitors.
As such, there is a simple yet effective tool that enables entrepreneurs and start-ups to be competitive and unique in today’s highly competitive retail marketplace, where many retailers are already familiar with the tool at hand, the concept and process of white labels.
The process of white labeling is one way that makes it easier for start-ups and entrepreneurs to build their brand and develop their products and services without needing to manufacture them.
White labeling is a process, a system that enables you to market and sell other companies' goods and services under the umbrella of your own brand. White labeling is not limited to physical, tangible products; rather, it can be offered by fintech such as Youtap as a software solution, such as Youtap POS White Label and Youtap Pay.
To explain white labeling further, this article will unpack and explore the definition, benefits, and examples of white labeling, as well as examples of white-label business models.
According to the global financial media website, Investopedia, white labeling is a process where a product is created by one company (the manufacturer) but is branded and sold under another company’s name (the maker or purchaser).
This arrangement allows businesses to offer their clients and customers customized and branded products and services without the hassle and time required in their design, development, and manufacture. As such, in the overall white labeling process, manufacturers benefit from white labeling because the process reaches a wider marketplace because it encompasses multiple brands.
For example, hypothetically you want to start your own branded bread, but you lack the capital and resources needed for its production and delivery. In this hypothetical, this is where the hypothesis of white labeling becomes apparent - where the white label process partners your business idea with an established enterprise. In this example, the bakery can buy the finished product, in this case, loaves of bread, and subsequently market and sell them under your bakery’s brand.
Moreover, in today’s digitized and interconnected era, white labeling has become a popular business strategy because of its simplistic design and flexibility, resulting in white labeling being a widely used commodity that is used across a variety of businesses and industries, from cafes and coffee franchises to skincare and software.
Furthermore, in the fintech and software industry, which includes business development, maintenance, and the publication of software sector, where business models are mainly either Cloud, license, and/or maintenance based, Fintech Youtap’s POS system is a prime example of the definition of a white-label solution.
As such, in today’s highly competitive retail marketplace, integrating a white-label POS system, such as the one offered by Youtap, enables you to streamline your business operations while simultaneously enhancing your brand's presence and identity.
In the cutthroat world of business today, it is important to understand the different incantations and variations of business-to-business models. It is a moot point whether or not this understanding is attained by maintaining strong relationships with your partners and /or suppliers or whether you are collaborating and networking; each perspective is essential in its own right for your business’s success and survival.
However, before exploring these business-to-business model aspects, you must understand how white label systems operate in today's marketplace.
First of all, manufacturers from industries as disparate as food and beverages to clothing and cosmetics to software developments produce white label products and services, such as point-of-sale (POS) applications.
At this juncture, these products and services do not have the manufacturer's name, logo, or branding; rather, once the product or service is ready, the manufacturer seeks out and searches for potential buyers for their white labeled products and services, customers found through different marketing channels.
For example, a company that manufactures Electronic Data Capture (EDC) payment machines may offer them to retail businesses or merchants, such as convenience stores such as Family Mart.
Moreover, some white-label manufacturers offer their customers customization options during their sales process. For example, some software providers may allow color scheme changes, some food and beverage manufacturers might offer ingredient modifications, such as adding mozzarella cheese to bread, while other manufacturers provide discounts for bulk orders.
Once a customer and manufacturer have agreed upon a price, the client can purchase the white-label product or service from the manufacturer, where they can subsequently customize the product or service by adding their own branded logo, brand colors, and other identifiable branded elements.
Finally, clients can either use the white labeled product as intended, such as implementing software in their operations, or alternatively, they can rebrand and resell the white label through various marketing channels from e-commerce platforms to direct sales to end consumers.
There are many advantages and benefits of white label businesses. For example, one of white labeling’s main benefits is its ability to save time and production costs, which allows companies to focus more on core operations.
The following highlight some key advantages and benefits that both customers and manufacturers can gain from implementing a white-label business model into their enterprise:
In business, it is crucial to determine what is the right time to sell or use white label products and services so as to maximize [your] business’s full potential. By adapting and implementing insights from global financial media website Investopedia, the following points highlight some ideal situations where white labeling can be a strategic choice for [your] businesses:
The following are some practical and relatable, real-life examples of white-label products and services that are commonly spruiked and sold by and to various businesses:
White-label food and beverage products atypically include raw ingredients or ready-to-eat, repackaged items that have been white-labeled to a customer's criteria and specifications. The food and beverage model allows businesses to offer specialty food products without needing to have their own manufacturing plant or production facilities, subsequently shouldering the costs and risks involved in their respective maintenance and upkeep. For example, roasted and packaged coffee;
In today's health-conscious and image-driven society, the health, beauty, and skincare industrial complex continues to grow exponentially / many brands (within brands) are turning to white-label production facilities to ‘white-label’ their products, where white labeled manufacturers launch [their] products without them having to develop formulations, potions, and lotions from scratch. In this, manufacturers offer a variety of customizable options tailored to different brands, with popular examples such as facial scrubs and washes, face moisturizers and serums, and sheet masks;
Both online and offline fashion retailers often source their accessories from white label manufacturers. These products are branded and mass produced according to the fashion retailers' brief, identity, and emerging trends, creating generic and unbranded fashion accessories from scrunchies to titanium jewelry that can then be white labeled accordingly;
Post pandemic, the rise and rise of DIY and home improvement trends has fueled a burgeoning furniture and lifestyle industry, creating a demand for white-labeled furniture and homewares, where interior design cowboys (enthusiasts) and social media influencers jackery the marketplace with their products and services, contributing to the expanding market trend for aesthetically pleasing and functional furniture and homewares that are expensive looking, designer products that cater to the current trends in the design industry, providing products such as aesthetically pleasing minimalist, mid-century-looking workstations, multi-functional dining tables, night lights, and wooden kitset shelving units;
Cosmetics fall under the umbrella of health, beauty, and skincare but have their own niche market share. Beyond basic skincare, many beauty brands use white-label manufacturing for makeup products based on pre-existing formulations and tried and tested must-have products, from lip gloss to nail polish, foundation to blush. White labeling their products enables cosmetic companies to expand their product lines quickly to maintain their market share and satiate their devoted customers with their branded in-demand and must-have beauty products;
Another popular category for white labeling in today’s digitalized marketplace is Tech Accessories. Businesses can readily market and sell these products at competitive prices without investing in costly Research and Product Development, with common examples being earphones, power banks, and USB cables easily manufactured and white labeled;
Humankind's love affair with cats and dogs has built an industry known as the pet industrial complex, an industry that continues to grow as our animals have transformed from being mere cats and dogs, birds and mice, or snakes and spiders, to becoming our de facto children, a $100 billion-plus industry built on mankind's need for companionship and control.
The pet industrial complex Pets are an increasing demographic and marketplace, where there is an ever-increasing demand for pet products and supplies for a society that has a diminishing birthrate and a growing middle class, white label products have started to cater to this burgeoning demographic, where both independent pet shops and online retailers are capitalizing on this trend by branding generic pet accessories under their own brands and names with products from dog collars to clothing to toys and food containers.
White-label products are not just limited to physical goods, they may also include software solutions. When white label products are compared to physical products, white-label software is more complex due to compliance, licensing, and source code ownership which have strict technology regulations.
Subsequently, this technological complexity raises common concerns for the business owners and entrepreneurs, with the main issue being the question: Is white label software legal?
The answer is categorically a yes, however, this is conditional - as white label software is legal as long as clients adhere to Intellectual Property Rights (IPR), governmental and industry regulations, and laws and legislation, particularly patent laws.
To cognitively understand and appreciate the complexities of white labeling, the following will take a closer look at a specific white label example, the white label software of fintech Youtap.
Youtap Point of Sale (POS) is a business application that helps merchants efficiently manage and monitor sales transactions, catering to a variety of industries, from hospitality (cafes and restaurants), retail (grocery stores, minimarkets, and specialist stores0, and services (beauty salons and barbershops).
Youtap POS is available on Android and iOS tablets, offering an affordable and expansive range of powerful features, such as:
In addition to Youtap’s standard POS version, Youtap offers a customization service that enables businesses to personalize the POS system to match their brand identity, with Youtap POS White Label.
This POS service allows businesses to customize the system's branding (such as colors and logo), their name, and other additional features according to their specific, unique, and customized requirements and demands.
If your POS system doesn't support payment transactions, what can you do? Who can you turn to? Ho much do you need to spend? Put simply fintech Youtap can help, by integrating their Youtap Pay. This device allows businesses to accept non-cash QRIS payments through CPM (Customer Presented Mode) and MPM (Merchant Presented Mode).
Additionally, beyond processing payments, Youtap Pay has other helpful functions to assist with your businesses integration and white labeling. Youtap Pay provides real-time reports and transaction history that help you to monitor your business finances.
Furthermore, unlike Electronic Data Capture (EDC) machines, Youtap Pay does not require merchants to be bank customers. Youtap Pay is integrated with major payment providers, including BCA, BNI, BTN, Indodana, Kredivo, LinkAja, OTTOPAY, OVO, and ShoppeePay.
If an acquirer, such as BNI, experiences issues, Youtap Pay automatically reroutes transactions provider, ensuring your payments are uninterrupted.
This means that you and your business only need one Youtap Pay White Label device, subsequently eliminating the need for multiple FDC machines to accomodate different payment methods.
Are you inspired to explore this business model? Start planning now and choose the white-label products that best suit your business by contacting Youtap! You won’t regret enquiring!
Wisma 46 Kota BNI Lt. 29 Jend. Sudirman Kav. 1 Jakarta Pusat, 10220
e-mail: halo@youtap.id
Whatsapp: 08111 500 523
Direktorat Jenderal Perlindungan Konsumen dan Tertib Niaga Kementerian Perdagangan Republik Indonesia
WA/Telp: 0853 1111 1010
.svg){kind=icon}
