The "White Label"!
Here's why adopting to "white labeling" as a primary strategy could come good even in the SaaS & AI era today...
FUN FACT (/ also dampener for some): This article IS NOT about a popular type of whisky. 😊
What’s your favorite drink / beverage?
Whether that is a cup of coffee from Starbucks / a can of Coca Cola / even bottled water, none of them can reach you safely sans the containers they come in. Starbucks uses a neatly branded transparent eco-grade plastic cup what they call a “reduced-plastic-cup”, alternately using the white paper cup as well at some outlets, when Coca Cola comes in that sleek ergonomically designed glass / plastic bottle.
Now, here’s a question: Do these big brands manufacture all the bottles / cups / containers?
If you are thinking Starbucks / Coca Cola invest into setting up manufacturing units of plastic / glass then you ought to know that they are sourced externally. Although these big brands have a say in the detailed specifications of the containers like design, weight, aesthetics there is an external vendor (sometimes multiple vendors given the demand) who takes care of all of this. These vendors could vary from local to hyperlocal depending on the brands needing them to be accessible at all times & also look to minimize transportation costs as that could be a recurring one. When a customer buys these drinks, he doesn’t even have a clue about the original manufacturers given the strong branding these orgs. resort to which essentially qualifies as an example of WHITE LABELLING.
Definition:
A white label product is essentially manufactured by one org., shipped to the other where it is rebranded, packaged & sold under their respective brand name.
It’s natural for one to think why an org. would be willing to compromise on recognition or question the logic behind getting into such an engagement. If you created a product, quite naturally you’d want to sport your brand name in the most spectacular fashion. But given the size of the market & the opportunity, white labeling has been going on for ages now & it is only logical to think that it may not have been possible if those orgs. manufacturing such stuff weren’t making enough profits.
But as much as a brighter side there’s a darker side to things more often than not. There are plenty of advantages & disadvantages of white labeling as pertaining to both the original manufacturers (let’s call them Builders) & the orgs who are purchasing / ordering for & rebranding them at their ends (let’s call them Buyers).
But post reading all this (and also given the examples quoted there), one may be of the opinion that white labeling as a strategy is applicable only to physical products that are old / from the yester-years and have nothing to do with today’s era of SaaS (could computing) or AI / disruptive tech. Brace yourself as that isn’t altogether true.
White Labeling in the SaaS Era
“WHITE LABEL SaaS” isn’t new although it may sound new to the ear. It is SaaS envisioned, built by one org. that is meant to be bought, rebranded & sold under the buyer’s brand name.
For ex:
Think of the last time you got on to pay for something via internet banking option. Your merchant might have got into an agreement to host that payment gateway with his bank, where you as a user were taken away from the screen for a short time to complete the transaction. That makes a great case for a white label cloud solution given how they are all offered as SaaS today over a statutory subscription model alongside commissions pertaining to a faint percentage of the OV (order value).
Let’s take a look at a couple of White Label products in today’s SaaS world:
1) AKURATECO (FINTECH)
As global payment technology provider, Akurateco boasts of integrating 350+ banks & payment gateways worldwide, offering services like smart routing, smart invoicing towards cutting the processing fee by 50%. What’s more, it is totally customizable at the buyer’s end.
Check out the CASE STUDY to know more:
2) ACTIVECAMPAGIN (MARKETING AUTOMATION)
Active Campaign offers effortless e-mail & marketing automation to their clients offering suggestions over the best way to help them drive meaningful customer experiences, all done over just a few clicks making it ridiculously easy to set up & manage.
1000 employees & counting: