White label vs Private label product

It is quite common the confusion between white label and private label. Although the terms are very similar, there are a few distinct differences between private label and white label products.

White label & private label product are both produced by a manufacturer on a large scale and sold to retailers who then add their own label and sell it under a different brand name. But in the case of white label, these products are generic, meaning the same standard formulations are sold to many different retail brands. If two retailers bought the same white label product from the same manufacturer, the only difference between the two would be the label, the product itself is exactly the same.

However, private label means that the product is unique. A private label product is not generic and is not produced for multiple retail outlets, rather it is co-created between the manufacturer and a specific retailer exclusively. Novel products can be developed or formulated under a private label program. Retail brands use this to differentiate their products and focus on their niche audience.