Very simple.

For example, Wal-Mart is a kindergarten, and the supplier’s brand is someone else’s child. Always babysitting other people's children, other people's children gradually develop and grow, bringing profits and goodwill. And these things are the result of helping them, and they have no children.

So in order to raise my own children, I established my own brand.

With the further opening up of the retail industry, some well-known foreign chain business giants have poured into China, which has brought greater shock waves to the already fiercely competitive domestic retail industry; at the same time, these Retail business giants have also brought a new marketing model-the sale of private label goods. Facing fierce competition from foreign chain giants, my country's large-scale retail enterprises can also learn from the "private brand" business philosophy and implement the "private brand" strategy to improve their core competitiveness. Although large retailers can gain more benefits by implementing private brands, not all large retailers are suitable for using private brands. It needs to meet certain conditions.

Implement private label considerations

Retailer brands are also known as PB (Private Brand, private label), PL (Private label, private label) and SB (Store Brand) abroad. , store trademark), which refers to the goods marked with the store brand that are produced or organized by commercial retail enterprises and sold by their own stores. The retail enterprise's own brand products are produced by the retail enterprise by itself or by selecting a suitable manufacturer by collecting, sorting, and analyzing consumer demand information for certain types of commodities, proposing development and design requirements for new product functions, prices, shapes, etc. Products that are produced and labeled with the retail company's own brand and are sold only within the company.

Whether large retail companies want to establish their own brands depends on whether the implementation of this strategy can bring net benefits to the company. The implementation of private brand management strategies by large retail enterprises has indeed reduced market transaction costs, because the implementation of private brand strategies not only helps large retail enterprises establish market competitive advantages, but also helps large retail enterprises implement differentiated competition strategies and achieve Dislocated competition reduces competitive pressure, thereby improving the connection between production and demand. At the same time, it gains more initiative in transactions with manufacturers, which is conducive to gaining price competitiveness, diversifying operations, and decentralizing enterprises. Business risks and the value-added of corporate intangible assets; but we should also see at the same time that this may increase organizational costs, management costs, personnel costs, etc., because to implement private brands, it is necessary to increase corresponding organizational structures (such as brand promotion, product Quality audit, after-sales service, etc.), personnel, and corresponding capital investment will also be increased. In addition, it will also increase market risks (such as the decline in demand for private-label products). When the increase in organizational costs, management costs, and personnel costs is greater than or equal to the cost reduction of market transactions, large retailers will not implement a private brand strategy. On the contrary, they will implement a private brand strategy; that is to say, If the company's marginal revenue (total revenue) is greater than its marginal cost (total cost, including production costs and transaction costs), it is feasible to implement a private brand strategy, and vice versa.

Necessary conditions for implementing private brand strategy

To implement private brand management strategy, large retail enterprises must first meet certain conditions and develop their own brands on the basis of these conditions. There is a brand. Good market conditions and complete government business regulations are the guarantee for the implementation of private brand management strategies, which can provide a very good development space for large retail enterprises. When large-scale retail enterprises implement their own brand management strategies, the enterprises themselves must comply with the laws and regulations contained in government business regulations, such as trademark law, company law, product quality law, etc. Although external conditions are a guarantee, it is the company's own conditions that play a decisive role. To develop their own brands, large retail enterprises must have a certain scale and strength, that is, a certain number of chain stores, and they must also have good goodwill and abundant funds to back them up. This is the strategy for large retail enterprises to implement their own brand management. the basis of.

Production conditions are the prerequisite for developing private brands, including whether sales channels are complete, whether transportation is convenient, whether technology is excellent, and whether the products developed are suitable. In addition, it is also necessary to select appropriate products to implement the private label strategy. This article believes that for large retailers to develop their own brands, they must meet the following conditions:

Have a large enough market space

When large retail companies launch their own brands, they must first It is necessary to conduct careful research on the market to see whether there is enough market space for companies to launch private-label products. Only when enough consumers buy the private-brand products of large-scale retail companies can large-scale retail companies implement their own-brand strategies. ; Otherwise, there is no need to launch private label products. Because after deducting the large amount of costs invested by the enterprise, it can only be a loss. Judging from my country's macroeconomic and microeconomic indexes, my country's retail market will still maintain a momentum of rapid development in recent years, which provides a good external environment for my country's retail industry.

Have a reliable production base

When large retail companies choose to develop their own brands, they must have a stable and reliable private brand production base. This is the implementation of their own brand strategy. the first step. Without a stable and reliable production base, the supply of private label products cannot be guaranteed. Generally speaking, there are two main ways for large retail enterprises to implement their own brand management strategies.

Entrust manufacturers to manufacture: that is, the retail enterprise designs the quality specifications, type, raw materials, packaging, etc. of the goods based on market dynamics, and then entrusts the manufacturer to manufacture them according to specific production requirements, and uses its own products when selling. brand. When large retailers select potential product suppliers, they must carefully consider factors such as their cooperative attitude, production capacity, product development capabilities, and traffic conditions, because the greater the variety of products, the more likely they are to cooperate with the manufacturers. The more problems there are, the more problems there will be in supply, quality monitoring, etc., and the greater the risk.

Self-set production base: The so-called self-set production base means that large retail enterprises design and develop by themselves, set up their own production bases to produce and process certain commodities, and sell them under their own brands. In this form, the relationship between production enterprises and commercial enterprises is not a transaction relationship but a collaborative relationship. They have the same interests and goals and merge into a whole of interests; because the transaction behavior between enterprises is transformed into Division of labor and collaboration can save transaction costs within the effective boundaries of the enterprise's scale. Have quite good goodwill

Large retail enterprises must have a certain scale and strength. Implementing a retailer's private label strategy is a very complex and systematic project. The development, construction and management of private brands require a large amount of investment in human, financial and material resources. Only larger-scale enterprises have such capabilities. The scale here refers to the retail enterprise's business area, business projects and sales volume. a certain scale.

Judging from the experience of retail companies in Western countries in establishing their own brands, once the company's retail network reaches a large enough scale, retail companies can force manufacturers to provide them with purchase prices through orders. As low as possible, retailers can gain more gross profit during the sales process and private label products can be more competitive. For example, the British department store M&S, which adopts a single-brand strategy, has 260 chain stores in the UK alone, with a total business area of ??600,000 square meters. It also owns more than 200 bookstores in Canada and 7 more in other countries. More than 90% of Sears' products in the United States use its own brands, and more than 800 shopping malls are located in various states across the United States, with an annual turnover of up to 30 billion U.S. dollars. If the commercial enterprise does not have a certain scale, it will be difficult to force the production enterprise to make too big concessions on the purchase price. Then the supermarket chain's own products will lose their price competitiveness.

Large retail companies should have good reputation.

High-quality goods and perfect services can win good goodwill for the company, and this is the most important part of the value connotation of cultivating its own brand. If large retail companies establish a good corporate image in the minds of consumers, they will always They can provide consumers with high-quality and low-priced goods, and put customer needs first. Then the supermarket's own brand has many characteristics of famous brands from the beginning, and is easily recognized and accepted by consumers. For example, Wal-Mart's Sam's Choice, Carrefour's bread, Hualian's rice and eggs, etc. These private-label products have large sales volumes in supermarkets. One of the main reasons for their success is that these large-scale Retail companies have a good reputation in the minds of consumers.

Have an efficient management team

Large retail enterprises should have a high-quality management team. To develop private brands, management modernization is a prerequisite. Otherwise, the development of private brands will not be successful. The world's famous foreign-funded retail enterprises have already widely adopted electronic information technology in their operations and management. The information management system can handle almost all matters related to the mall, from purchase and sale to deposit adjustment, from customers to checkout, from advertising to financial processing, advanced The management system provides accurate and true information for business operations every day. Without a professional brand operation team, it would be impossible for a commercial enterprise to develop its own brand.

Have suitable private label products

In 2004, Wal-Mart successfully launched "Sam's Choice" cola, hoping to seize part of Coca-Cola's market. Although in multiple blind tests, 95% of consumers could not distinguish between Wal-Mart Coke and Coca-Cola, and Wal-Mart Coke always occupied the most advantageous position in the supermarket, however, the sales volume of "Sam's Choice" Coke has never reached that of Coca-Cola. of 10. The success of Walmart's OEM for some products and the failure of Walmart's Coca-Cola OEM tell us this: when we are OEMing products, we must choose the right products for OEM, otherwise, the OEM will face the risk of failure. Large retail companies generally choose products with the following characteristics for OEM:

Choose products with relatively low prices. Consumers generally go through a consumption trial process for goods of the same type but different brands. If the price of private-brand goods is low, this can reduce consumers’ purchasing risks and opportunity costs, thereby speeding up consumers’ understanding of the goods. , if large retail companies can effectively ensure that their own brand products are of high quality and low price, then the company will quickly increase sales, open up the market, and occupy the market.

Choose products with less professional and technical content. For products with high professional skills such as laptop computers, digital cameras, color TVs, etc., due to their own technical image disadvantages, it is difficult for retailers to compete with manufacturers. Non-professional products with low technical content are popular and purchase. Due to the characteristics of high frequency, there is little difference in the inherent quality of similar products, and the differentiation of brands is outstanding. Retailers can cultivate brand loyalty by relying on their good reputation. Therefore, commercial enterprises choose products with low technical expertise to develop their own brand products to improve the success of their own brand strategy implementation.

Choose products with no cultural symbols or weak cultural symbols. Cultural symbols refer to a certain commodity or a certain type of commodity that forms a culture in people's minds. For example, KFC chicken legs, McDonald's burgers, Nike sneakers, etc., these commodities have formed a cultural symbol. Although there is not much difference in taste between the chicken legs you buy at KFC and the chicken legs you buy at Wumart Supermarket in Shanghai, there must be two different psychology when you buy them. Similarly, Wal-Mart supermarkets can provide customers with high-quality and low-price products, and can make consumers believe how suitable their own-brand products are for them through continuous advertising investment. However, supermarkets' own-brand products are not yet able to compete with Coca-Cola, Brands like Nike, which have become cultural icons, pose a threat.

Choose products that are purchased more frequently. Because of the high frequency of purchases, large retail companies can place large orders with manufacturers and take advantage of economies of scale to achieve low prices for their own brand products.

Due to the high frequency of purchases, consumers have more frequent contacts with retailers, which makes it easier to cultivate consumer brand loyalty and save a lot of marketing costs. In terms of sales, we learned through interviews and surveys that the sales of private-label series of fast-moving consumer goods in some large supermarkets are relatively good, especially paper towels, disposable cups, snack foods, and some holiday candies, which can be listed among the best-sellers.

Choose products with high requirements for after-sales service and freshness. For products with high after-sales service requirements, retailers can provide necessary after-sales services at close range and in a timely manner. For commodities with high preservation requirements, such as food, vegetables, aquatic products and other fresh-keeping commodities, retailers can use their good reputation as a guarantee and take advantage of short channels to provide genuine products at reasonable prices to consumers in a timely manner.

Choose fashionable products. For popular products such as clothing, shoes, hats, and jewelry, retailers can take advantage of the advantages of retailers being closest to consumers to understand fashion and having short channels to quickly deliver such products to the market to meet consumer demand.