Private brand goods have a large profit margin. Private brand goods refer to goods that retail enterprises set up their own production bases or choose suitable production enterprises for processing and production, and finally register their own trademarks and sell them on their own sales network platform. To develop its own brand, there is no need to pay the brand use fee, and the goods can directly reach the distribution point of the sales enterprise from the manufacturer, which reduces the intermediate links of the supply agent, gets rid of the control of the supplier, and saves a lot of advertising and promotion expenses. Relying on the huge sales system of the supermarket itself, the sales scale can be quickly formed. Therefore, developing private brands has become one of the effective ways for businesses to reduce costs and increase profits. Insiders reported: "For supermarkets, the profit margin brought by private brand goods is obvious. Therefore, developing its own brand is an inevitable choice for chain supermarkets to grow to a certain stage and scale. " At present, there are more and more self-owned brand products in supermarkets, such as Huapu's facial tissues, Wal-Mart's baby soft towels, the honey of CP Lotus, Carrefour's drinks, Hualian's toilet paper and Watsons' personal care products. Supermarket's own brand occupies more and more space. How big is the profit of private brand? Experts believe that the profit rate of goods supplied by general suppliers in supermarkets is mostly around 5%, while the average gross profit of private brands is around 15%, and knitted products are as high as 40%. The price of private brand goods is lower than that of similar goods 10%-30%, while the profit is higher 10%-20%. The profit margin of private brands is so large that all major supermarkets regard the development of private brands as the strategic focus of enterprise development. Carrefour, Wal-Mart and Auchan all launched their own brands in China. It is understood that retail giants in developed countries in Europe and America have thousands of kinds of self-owned brand goods, accounting for about 30% of sales, while in Britain the proportion is as high as 45%. In recent years, emerging local supermarkets in China have also launched their own brand products, and supermarkets such as Hualian, CR Vanguard and Wumart have all launched their own brand plans. Yang Qingsong, director of the Information Department of China Chain Store & Franchise Association, believes that the emergence of private brands has a deeper reason, that is, "China's commodity economy has entered an era dominated by retailers, and retailers hope to directly enter the upstream through their own influence and gain profits". The development of private brands needs to be cautious. Although private brands have great profit margins, the sales of some private brand products have not achieved the expected results. Some products are seriously out of stock, with high storage cost and great loss, and even bring unnecessary losses to retailers. Therefore, it is necessary to do a good job in market research and produce marketable products in order to ensure the income. To develop your own brand, you should pay attention to three points: choose the right category. When choosing the category to enter, retailers should fully consider the acceptance of their own brands by the target customers of this category, whether the product development is consistent with the retailer's own positioning, and the logistics and management level of suppliers and themselves are also factors to be considered when choosing to enter a certain category. Can't simply copy. Simple imitation will lead to poor sales of a large number of products. For retailers, on the one hand, "copying" the products of successful manufacturers, on the other hand, product improvement and new product development oriented to target consumers are the key to the success of their own brands. Take Wal-Mart's Sam member store as an example. The business goal of Sam Store in China is to meet the needs of business members for resale, office work and welfare distribution, as well as the needs of high-income individual members. So we can see eight pieces of "member quality" soaps and boxes of copy paper sold in Sam's member store, and the actual sales data also prove that these transformed products are successful models of their own brands. Strengthen commodity quality monitoring. In private brand products, the quality accident of a single commodity will have a negative impact on retailers and their private brands, especially the food preservatives and heavy metals exceeding the standard, which has a great impact on private brands. It is understood that in order to choose suitable manufacturers, some retail enterprises entrust third-party monitoring institutions, and some audit themselves. Due to the high cost of entrusting a third party to monitor, some retail enterprises can only entrust a limited variety to a third party to monitor, and more retail enterprises monitor by themselves, which makes some enterprises with poor production conditions enter the ranks of producing their own brands, and it is difficult to guarantee the quality and safety of their own brand products. Relevant information shows that because most retailers position their brands as low-priced products, suppliers with the lowest quotations are often favored, and it is easy to sacrifice quality at this time. Any relaxation of suppliers' technology will lead to quality accidents. Retailers' specialty is not product manufacturing, but the production of retailers' own brands requires retailers to understand manufacturing-related technical knowledge, laws and regulations, logistics and distribution and other related professional knowledge. Therefore, retailers need to establish their own quality control departments to control supplier qualification, product inspection, product production technology and formula, packaging and labeling specifications, product transportation and receiving standards, so as to reduce the possibility of quality accidents from the source. This is especially important for retailers who have begun to explore their own brands. Yang Qingsong revealed that the Ministry of Commerce decided to entrust the China Chain Store & Franchise Association to draft the Standards for the Development and Management of Supermarket Private Brands on the basis of the application of the China Chain Store & Franchise Association to formulate the national standards for homemade foods in supermarkets. According to reports, the standard will guide retailers to start from a series of production links such as product research and development, manufacturer selection, commodity transportation and sales to ensure the quality of their own brand goods. In addition, the supervision of private brand goods will be clearly defined. "At present, we are conducting preliminary research and it is expected that this specification will be introduced by the end of this year." Yang Qingsong said.