Retail

Why white labelling is the new black in retail

Arie Spivak /

Brands are starting to realise the connection between order fulfilment and brand experience, and how this relates to customer loyalty. Not only are they seeking to take back ownership of last mile delivery, but another trend is also emerging at the same time: white labelling the delivery process. So much so, it can be said that ‘white labelling is the new black.’

Although brands are accustomed to using trusted third-party logistics companies to deliver their product, new age technology is now offering them the power to white label the technology third-party logistics companies use. By white labelling the delivering process, brands are demonstrating to their customers that they hold themselves accountable for customer satisfaction and experience by retaining more control over the entire end-to-end delivery process.

Generally speaking, white labelling enables a brand to sell under its own label and maintain its brand from point to point. It reduces time to market dramatically and if a new initiative or concept for the business needs to be demonstrated, white labelling can accelerate this to an MVP state (minimum viable product) and accelerate it to a commercial offering.

Industries that are already prevalent in the white labelling space are large scale industries with scale opportunities such as QSR, retail, enterprise brands, enterprise manufacturing and insuretech. White labelling is beneficial for brands who experience ongoing development, as it allows them to leverage the technical capability of a product that they would have otherwise needed to develop.

What could white labelling mean for your business?

The answer is simple. Everything. There are so many value properties for brands who white label.

Not only boosting brand visibility, even amidst naysayers believing that white labelling is an expensive and unnecessary option, but it is also actually extremely cost-effective. Rather than spending millions on developing your own product or technology, brands can save time and money by essentially jumping into a white labelling platform by simply signing a licensing fee.

White labelling also offers a “best of breed” solution, allowing brands to steer away from the “jack of all trades, master of none” mentality and take advantage of expert technologies. Avoiding the growing pains of developing your own product, and considering brands lack the knowledge of energy and resources required, having an already “pre-packaged” product can be a win-win.

Why reinvent the wheel when you can white label?

What about private label?

Another emerging trend is the ‘private label’ dominance in grocery networks, whereby supermarket giants are using the same manufacturer, but are now selling under their own brand. Grocery networks are not going out to create their own manufacturing plants but rather putting a private label on it.

This trend, i.e private labelling in the retail world, is perhaps the most obvious comparison to how white labelling is, and will continue, to emerge globally.

When the sharing economy meets the gig economy

Globally, white labelling has been done for years. Although Australia is not necessarily behind on the charge, certain mentalities have slowed the uptake.

Australian corporates have an appetite for the aforementioned “jack of all trades” mentality where they prefer to own everything they do. Whereas the sharing economy mentality is creating an evolution of ways for enterprises to leverage existing technology that they do not own, under their own umbrella, rather than creating technology that likely, already exists.

In recent years, the gig economy has started to merge with the sharing economy by providing a workforce for last mile delivery platforms and services, including white labelled delivery. Businesses now have the option to either manage their own white labelled fleet or book a crowdsourced courier for a shift, effectively white labelling the couriers themselves.

This trend has now crept into the last-mile space with global brands looking to white label the delivery process. The days of third-party distributors being responsible for the delivery of packages is starting to dwindle; now, brands are willing to put their brand on the technology that controls distribution networks, taking responsibility for the entire end-to-end delivery process.

While it’s important to adopt the right strategy for your brand or business, a white labelling strategy can allow you to remain competitive in the market and maintain customer loyalty, even more so if you can access a tailored solution that offers more control.

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Arie Spivak

Arie Spivak is the co-founder and chief technology officer of Radaro, an enterprise technology platform helping businesses dispatch, track and report on their logistics.

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