Moreover, the option of the White Label Agreement allows the manufacturer to expand the range of customers of its goods and services, to form a successful business model to offer to the other potential similar partners. The manufacturer may sell its own products and services without paying additional costs with respect to advertising and promoting its products. However, the reseller may not interrupt and influence the manufacturing process as all the technologies and design are part of the manufacturer’s sphere of responsibility. In this case the reseller may focus on its primary business and earn additional profit from the partnership program without investing huge amounts of money in developing new and complementary products. The reseller obtains a possibility to quickly start-up in any market and to reduce its own costs in connection with the production process.
When choosing this model, the parties to the White Label Agreement encounter some particular advantages and disadvantages. What are the advantages and disadvantages of the White Label Agreement model? You can discover what E-commerce is within the scope of White Label relationships by clicking the link to our previous article here: This enables a company to spread across more markets than they would ordinarily be capable of doing in a typical four brick walled company. It is a new way of conducting business that breaks down nearly all barriers created by international frontiers and enables you to trade your product/service/good across borders. The White Label strategy is widely used in the production of electronics, foods, software, etc.Į-commerce should be mentioned in this connection.
The White Label concept is understood as a concept that involves the production of goods or services by one company and the use of these goods and services by another company under its own brand. As an option retailers may simply sell products manufactured and branded by other companies, including based on the White Label concept. However, in some cases that might create a problem. Many entrepreneurs choose to “build up” a new brand by manufacturing its own products. Western experience shows that the concept of the White Label Agreement opens up new possibilities for both major and start-up companies.īranding plays a vital role in the running of a successful business.
0 kommentar(er)
