Even though most entrepreneurs opt to develop their innovative products, in the current scenario of a highly competitive market, it is getting quite strenuous for brands to achieve the kind of recognition or acknowledgment they deserve. This is where the white label products come into play.
White label products are goods or services of a brand that are rebranded and resold by another brand. For example, Velmie is a banking/mobile payment service used by several startups and SMEs as a payment gateway. Here, Velmie acts as a white-label platform for other brands that use its services under their business operations.
If you’re looking for a deeper insight into this subject, here is an A-Z guide of everything you should know about white label mobile platforms.
What exactly are white-label mobile platforms?
White label products are commodities or services of a company or brand rebranded and resold by a different company through contracts. White label products are becoming a significant component of the market because these ready-to-use services are more convenient for startups or businesses looking for quick success and profits with less work done.
These platforms are nothing else but mobile services like applications designed for the market needs of a provider. A different company or multiple companies resell them under their brand name. The company built a mobile wallet app procured by company Y, which uses this app to provide services under its brand name. Here company X acts as a provider or manufacturer of a white label mobile wallet platform for company Y.
Along with the companies who derive white label services, the providers or manufacturers equally benefit from this. It gives them a broader spread in the market resulting in more revenue. E.g., for app developers who do not possess good marketing strategies or lack resources to do so, developing white-label mobile platforms comes off as a win-win situation.
What is the use of white label mobile platforms?
Presently, mobile services are used by every other person and are no more a luxury afforded by some. This makes the emergence of mobile platforms like apps and websites quite essential to cater to market demands. Hence most businesses and companies opt to promote their products and services online through websites and, most importantly, mobile applications. Along with that, they also decide to include sticky elements as well as emergency recovery tools on those same websites.
But you might ponder, how are white-label mobile platforms marketed and used? Well, talking about the use, there are two significant ways companies redeem white-label platform services.
Getting a company to do the back-end work:
This is where one company redeems the services of another company and gets them to work from behind the screen. Here, the provider company plays the role of a middleman between the company redeeming its services and the customers in the market. It works for brands who desire to be front-facing themselves in the market.
Using a front-facing company for their services
This is when the provider company works directly with the customers while providing the services and acts as the front-facing unit. The option is more suitable for companies looking for affordable services and does not necessarily need sole recognition for its products. It also comes out to be more economical at times.
What are the types of white label services?
B2B white label:
Here, the services are resold to a company that resells them to another company for its use.
B2C white label:
The provider sells the service to a reseller company that resells it in the market for the consumers.
White-label SaaS:
SaaS, often called software as a service, is a type of service where software is developed by a company and is sold to a reseller that rebrands the software under its name. It results in more distributed returns compared to traditional software distribution.
Why are white-label mobile platforms important?
There are numerous compelling reasons why a company would opt to use white label services. Some of the most significant ones are:
Catering for the needs of the market:
With a growing and demanding market, companies shape themselves according to the needs of a customer. E.g., a fashion brand decides to launch online shopping. However, it doesn’t have the resources to come up with online payment services. This is when it will use a white label online payment service to resolve the issue.
Expanding the reach:
To attract more clients or users, a company might use white-label mobile platforms to expand its reach in the market hassle-free. This could be the use of more products or additions to the existing services.
To enhance the services:
Companies might not deliver quality services in all niches; hence they can use white label mobile platforms that experts and professionals provide. It can be utilized to enhance the brand name of a company in the market.
Benefits the provider:
Manufacturers or developers of white-label platforms stand a chance of economic benefits as their products get resold. This is significant for brands that cannot compete directly in the market due to a lack of resources and hence can resell their quality products for profit.
Takeaway
If you’re someone looking forward to using white label services in the future, the critical thing to keep in mind is the need of your brand and its market. Using white mobile platforms for your brand can be the best thing and, at the same time, could backfire if you aren’t familiar with the risks. Hence, refer to this guide thoroughly to understand all related risks and benefits to settle a good decision.
