Retailers developing their own brands is nothing new in the retail industry. However, private label products have not brought huge profits as retailers expected, despite a large number of price reductions and promotions. Product promotion, sales of most private label products are always unsatisfactory; product inventory seriously exceeds the standard, warehousing costs are high and losses are large, sometimes even causing unnecessary losses and negative publicity to retailers.

Why does a similar situation occur? In order to understand this issue in depth, we have to start with the definition of private label. Generally speaking, private label products refer to retail companies that analyze consumers’ opinions on a certain type of product. According to the demand for goods, we must put forward the development and design requirements for the internal quality and external packaging of the product, select the appropriate company for development and production, use the retail company's own trademark, and sell goods within the retail company.

If we put Comparing the process of developing private brand products by some retailers with this basic definition, we can find that: There are three misunderstandings that retailers can easily fall into when developing private brand products, which prevents the performance of private brand products from reaching the level of Expected.

Improper category selection

Retailers choose to enter the wrong category. These mistakes often manifest themselves in the following two types of cases:

Case 1: Retailer Through the analysis of its own sales data, A decided to enter the shampoo category. Develop 200 ml anti-dandruff and black sesame shampoos. The target products are Rejoice shampoo and Sunsilk shampoo respectively. The retail price is 8.60 yuan. Product sales have been Unable to achieve the expected results. In this case, we can easily find that the retailer has entered a market with extremely high consumer brand loyalty. In this category, a few manufacturers have gained an overwhelming majority of the market by virtue of their technical advantages and marketing capabilities. Share. It is difficult for retailers to capture the expected share in such a market.

Case 2: A discount store chain decided to develop its own brand of hair conditioner for 200 stores, but we can easily find , For the target customer group of discount stores (low-income people), hair conditioner is more like a luxury product than a daily necessity, so the product will naturally not have good sales performance.

In addition to the above cases, we will also find that retailers often spend a lot of energy trying to enter some categories that are beyond their current management level, such as: dairy products that require higher logistics and distribution capabilities.

Retail When choosing a category to enter, merchants should fully consider the acceptance of private brands by the target customer groups of the category, whether product development is consistent with the retailer's own positioning, and at the same time, the logistics and management levels of suppliers and themselves should also be considered. Factors that need to be considered when choosing to enter a certain category.

Simple imitation

Another misunderstanding made by retailers in the development of their own brands is simple imitation. The simplest way is to A certain product of the manufacturer's brand is used as a target product, completely copying the formula, quality and even the outer packaging design of the target product. Therefore, it is easy for us to see anti-dandruff shampoos similar to Rejoice and products that look like Austrian products in the stores of various retailers. Leo's biscuits, jelly that looks like Xizhilang...the difference is that these products are labeled with brands such as "Carrefour", "Huiyi", "Dia Tiantian", "Yichu Lotus", etc. . It is true that retailers cannot have a complete set of product research and development teams like manufacturers to conduct consumer surveys, product research and development, packaging design, product testing and adjustment work. "Copying" is often the safest method, but it is blindly simple Imitation is also the reason for the poor sales of a large number of products.

For retailers, on the one hand, "copying" successful manufacturer products, on the other hand, product improvement and new product development oriented towards target consumers are important The key to the success of private brands. Taking Wal-Mart's Sam's Club as an example, the business goal of Sam's Club in China is to meet the needs of business members for resale, office work and benefit distribution, while also meeting the needs of high-income individual members. Therefore, we

You can see 8-packs of "Member Premium" soaps and full boxes of copy paper sold in Sam's Club stores... and the actual sales data also proves that these modified products are successful private brands. Model.