--> The grey areas of white labelling

The grey areas of white labelling

After a premium luggage brand was accused of sourcing products from China, experts decode whether white labelling is as controversial as its made out to be

by Sandhya Raghavan
Published - February 03, 2025
6 minutes To Read
The grey areas of white labelling

Not too long ago, a new word entered the public lexicon—white labelling—all thanks to a viral post on Bengaluru-based D2C company Mokobara. The luggage and backpack brand was “exposed” for allegedly sourcing its premium products from China after eagle-eyed netizens spotted lookalike products on Alibaba.com for bulk purchases.

The brand was accused of "white labelling", a practice where businesses rebrand products purchased from other companies to present them as their own.

It was a bad look for the company since the bags sell at a premium price. As backlash mounted, Mokobara doubled down with a sassy new launch post and an even audacious coupon code that read “WHITE LABEL”.

The company’s reaction may come across as particularly controversial, but to cut it some slack, Mokobara does list “PRC” (People’s Republic of China) as “Country of origin” on its website.

However, an April 2024 Forbes interview with the founders —Sangeet Agrawal and Navin Parwal— seems to allude that they had an active role in designing the products after working on “multiple prototypes”. And to quell any allegations of copycatting, there were 13,401 hits on “Mokobara” whose designs were registered on the World Intellectual Property Organization’s Global Design Database.

But what’s notable is Mokobara’s response. By throwing shade at detractors, the company has refrained from offering any black-or-white clarification about its white-label connection. And understandably so.

Shades of perception and consumer trust

According to data by Trading Economics, in 2023 alone India imported goods worth $122 billion from China, some of which were rebranded in India and sold under Indian brand names.

Some of the sectors that source or manufacture products abroad include electronics, fashion, luggage and consumer goods. For many D2C brands and start-ups, white labelling translates to cost efficiency, quick market entry and reduced R&D endeavours.

“White labelling is not a new concept. Many companies source or buy their technology from others. LED screens are made by a few manufacturers but used by other brands. White labelling is common in certain software as well – for example, movie ticket bookings,” notes Nisha Sampath, Brand Consultant and Managing Partner of Bright Angles Consulting LLP.

“For D2C brands, white labelling is a launchpad—accelerating innovation, reducing overheads, and enabling a sharper focus on storytelling and customer experience,” adds Robin Thomas, Lead - Strategic Partnerships & Growth, White Rivers Media.

But despite the obvious advantages of white labelling for smaller businesses, brands are not forthcoming about admitting to it due to concerns over consumer perception, brand authenticity, and the potential backlash associated with sourcing products from overseas.

China has long battled a perception problem in India. Chinese manufactured goods were believed to be of lower quality with a dismal shelf life. These existing perceptions were intensified in the aftermath of India’s political tensions with China in 2020.

Post the Galwan Valley clash, routing out Chinese products and encouraging Indian-made ones became a nationalistic objective. White labelling also goes against India’s self-reliance goals and domestic manufacturing initiatives like “Make in India.”

Brand /CEO Coach, Brand Strategist and Founder of Brand-Building.com Ambi Parameshwaran chimed in about the Mokobara controversy, noting that consumers may feel “cheated” if they realise that the brand they’ve been considering homegrown is manufactured overseas, affecting the brand’s “unique Indian design logo. "

This explains boAt’s recent Republic Day ad. The audio tech brand teamed up with comedian Ravi Gupta to sarcastically address its China connection.

In the ad, Gupta leads an “expose” of the brand by taking the audience through its “Chinese” factory. However, as the film unfolds, it becomes apparent that the factory and workers are Indian and have nothing to do with China. The ad was made for detractors and many subreddits who perpetuate the belief that many of the brand’s products are produced in China and then branded under the boAt name for the Indian market.

On brands distancing themselves from the white label allegations, Thomas says that it’s a strategic choice, which is kept discreet to preserve brand perception and competitive edge.

“Authenticity also comes into play—consumers want to believe in a brand’s craftsmanship. Discovering that their favourite brand doesn’t manufacture everything in-house might feel like finding out that your ‘homemade’ cake was store-bought. This balancing act between practicality and perception is where brands tread carefully,” he quips.
Being discreet also prevents revealing too much about supply chain dependencies, which can feel like handing over a blueprint, says Thomas.

Much ado about white labelling

While a brand like boAt has openly challenged its China connection, Mokobara has chosen the cheeky, reticent route with a social media post sticking it to its detractors.
Maybe the controversy wasn’t such a “brand threatening crisis” and defusing the situation with Mokobara’s “characteristic chutzpah” was the best way forward, believes Srinivasan. “Perhaps the brand did not feel the need for an apology since they are not white-labelled goods at all, considering their website mentioned.”

Any brand facing white labelling allegations should “ride out the storm” says Parameshwaran. “Get back to strategic communication that highlights their unique points, and nothing will stop them from going forward and upwards.”

But ultimately, what impacts brand perception is not white labelling alone. “It is what the brand does while selling and after the sale. Where the product comes from is of relatively less importance compared to what it does to users/how it performs. This is where brand trust comes from too,” Srinivasan notes.

Thomas concluded by stating: “The real differentiator isn’t who manufactures the product; it’s how a brand transforms it into something meaningful. But long-term success depends on execution. In a world where ethical sourcing and sustainability are non-negotiable, transparency isn’t a risk—it’s an advantage. Done right, white labelling isn’t a secret to be hidden but a strategy to be owned.”

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