White labels are used by some websites to facilitate a successful brand for offering its services
The name has originated from the white labels image on the packaging where the trade dress of the marketer finds place. 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. The removal of labels from DJ records popularizes the term 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.
White label software are used by some websites to facilitate a successful brand for offering its services without investing in the development of infrastructure and technology. 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, a few manufacturers produce generic brand labels at low-cost, with just the products name, like Cola.
Sometimes, large banks take the responsibility of running smaller banks’ credit-card operations. Cards are issued and processed by larger banks in the form of white label cards, usually for a fee. 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.
