Differences in White Label, Private Label and OEM strategies

            Today, there is a business model that will help startups and SMEs to consider when adjusting their strategies. Or even transform the business to be able to operate at low costs, reach customer groups, and reduce trial and error time. (which is not suitable for wasting time In this economic environment), reduce marketing costs, reduce inventory both work in process and finished goods, etc. Sounds interesting. And it's also suitable for preparing to plan Strategy for next year, which is our VUCA (Volatile-volatility, Uncertainty-uncertainty, Complex-complex, Ambiguous-ambiguity) year, right? So let's look at a summary of the concept in an easy to understand way. of White Label, Private Label, and OEM strategies that can be used both in the case where we are a product manufacturer and those who find products to sell

White Label:

“Your name, Your Brand, otherwise don't worry.”

          White Label manufacturers have various designs and formats. Let customers who are Retailers or Brands choose to their heart's content. Make the product unique, as if the retailer designed it himself. (Using a production process that has already been designed) After production, the Retailer will put it on its own brand. Therefore, the Retailer reduces the burden of selecting. and raw material management Including the production process but also has a high identity

            For example, such as making a learning platform. These businesses do not need to develop software themselves, but bring the platforms that developers already have and let them adjust the look and add content. For example, our Thai Start Up called FrogGenius that creates a platform. for studying issuance of diploma payment system Complete with all functions to various agencies whose customers are leading organizations in the country such as the Stock Exchange, National Innovation Agency, etc.

            In addition, you can use the White Label concept and twist the perspective a bit to get a new business model that creates efficiency at the national level. An example to give a simple picture is the White Label ATM project of the Bank of Thailand, which is an ATM without a brand, not classified as belonging to any bank. Providing more people with access to ATMs can greatly reduce the cost of transporting money. (The cost of producing and transporting cash throughout the system is approximately 5 billion baht, 80% of which is transportation costs.)

Private Label:

“Producers don't have to worry about marketing. Sales people don't have to worry and waste time on production.”

          Retailer (a business that sells products directly to customers) will focus on brand development and income only. Products using the Private Label format will be made and sold to a single retailer, and the retailer has a plan to keep ordering them if they sell. This makes Private Labels different from White Labels. Examples of Private Labels include: such as IKEA, Tesco Everyday Value

OEM (Original Equipment Manufacturer):

            When the production company Producing products according to the customer's design is called OEM product, which makes it easier for companies that want to sell that product. No need to invest in building your own factory. But companies that want to sell products must Provide details of design, various formulas to OEM companies.

            OEM products are usually brand new. and is often a further development from Private Label that still uses the manufacturer's design

conclude

            White Label, Private Label หรือ OEM It is a form of process produced by a company. Another company is the marketing and sales person. There are things in common. Consumers often do not know who the person who actually produces the product is, while the difference is The person who owns the design or copyright of that product or the number of times done When we think about it, we can see that many companies near us operate with this type of strategy. Therefore, those of us who are Startups and SMEs, let's try to use this as a strategic plan to use in planning in the future. It should be beneficial, reducing costs and strengthening the business. See you again next time. Please take care of your physical and mental health. Thank you.