At present, China's retail industry is developing rapidly. According to the data released by the National Bureau of Statistics, even in the context of the financial crisis, the total retail sales of consumer goods in China in 2008 was close to 11 trillion yuan, an increase of 21.6% over the previous year, and the growth rate was 4.8 percentage points faster than the previous year. At the same time, the competition in the retail industry has become increasingly fierce. Foreign retail sales have intensified their competition for the market. Last year, the proportion of foreign retail sales accounted for 22.5%, up 2.4% year-on-year; and the game between zero-supply has an increasing trend, and manufacturers as suppliers Negotiating power with retailers. Then, whether or not to own and develop its own brand has become a major problem facing local retailers today.
Interpretation of the status quo of retailers' own brands
The retailer's own brand, simply means that the product is tagged with the retailer's own brand logo and sold in its channel. Looking at the entire retail industry, private brands have originated in developed countries in the West and have formed scale. According to data from the American Association of Private Label Operators (PLMA), in recent years, the proportion of retailers' own brands in the Western European market has reached 30% to 40%, the US market is over 20%, and the Japanese market is around 10%. Large retailers have a high proportion of their own brands, which greatly boosts their performance. For example, Wal-Mart, the leader in the supermarket format, has about one-fourth of its merchandise sold as its own brand, 30% of its sales come from its own brand, and Marks & Spencer of the department store uses 100% of the series. Brands, consumer brand loyalty is high. At the same time, the growth of private label sales is faster, and many categories exceed the manufacturer's brand.
In contrast to the status quo of retailers' own brands, the gap exists objectively. From the perspective of management level, except for a small number of enterprises such as Gome, Suning, Bailian and China Resources Vanguard, which have formed a large-scale layout across the country, many Other retail enterprises are not enough in terms of the number of stores, sales or profit levels; Domestic retail enterprises have not fully raised their strategic heights for their own brands. They lack long-term considerations and plans. Most local retailers have repeatedly stated that their future core competitiveness will be placed on commodity circulation and services. From the marketing details, domestic Retailers have much room for improvement in product quality control, information communication, brand strategy implementation, and supplier relationship processing. Gome, Yongle, etc. have launched some private label products but have poor results. Bailian in 2007 Selling the sweater brand "EALIO" in his own store has also encountered the embarrassment of neglecting the front door.
Do local retailers have to do their own brands? The answer is yes. (1) The retailer has strong control over the product. Whether the manufacturer or the manufacturer is self-produced, the retailer is in a dominant position, which is conducive to the implementation of quality supervision and cost control, thereby achieving benefits in terms of sales volume and profit. (2) Retailers directly face consumers, their own brands are more likely to be close to the target market demand, and the store is more targeted and proactive in product promotion, forming a “positive circulation mechanism†for integration of production and sales. (3) Self-owned brands are conducive to disseminating retailers' brand information, promoting brand influence, enhancing brand image, and having positive significance for retailers to enhance their competitiveness. (4) Local retailers have obvious shortcomings in their own brands. The lack of scale and revenues make local retailers lack the confidence to build their own brands. The lack of strategy will lead to the loss of future opportunities. The lack of marketing strategies will result in If the brand's vitality is weak, if the local retailers do not catch up, the market share and customer share will be lost.
Create six practices for retailers' own brands
Since the nature of the retailer is a commodity circulation enterprise, the self-owned brand product should be provided by entrusting other production enterprises or its own affiliated production department, and then sold out with the prestige established by the brand in the minds of consumers. This requires retailers to have considerable strength and scale, and a good brand image is also indispensable. In addition, local retailers need to do the following six exercises.
1. Expand the scale of operations. Retailers' own brands are closely related to the scale of operations. The number of stores, sales levels and financial strength are necessary guarantees for their own brands. Local retailers should appropriately speed up the opening of new stores, occupy terminals, form a broad channel system, expand sales scale, accumulate and introduce development funds, thereby attracting production companies to make their own OEM products or build their own factories, and pass huge The sales network brings products to market. In this regard, retail companies can take advantage of opportunities in the environment. For example, the reform of the new medical system in China provides an opportunity for pharmaceutical retailing. Chain pharmacies open more branches in the community, and funds are not enough to adopt financing methods. The large pharmacies of the general public have opened stores in the country with a risk investment of US$82 million. 300 companies have achieved economies of scale and paved the way for their own brands. For another example, the implementation of the urban-rural integrated development policy has enabled the rural population to continue to shift to districts and counties, and the purchasing power has gradually increased. The layout of integrated supermarkets in these places is in line with the market development trend; Yonghui Supermarket plans to be in the main city of Chongqing and Wansheng and Wanzhou in the next three years. In the districts and counties, the investment amounted to 1.5 billion, and the number of supermarkets opened reached 100, because Yonghui realized that only intensive distribution can improve competitiveness and lay a solid foundation for its own brands.
2. Planning a viable strategy. Self-owned brands have many benefits for retailers, but they are not a one-time thing. We need to plan a few important issues from a long-term and systematic perspective, including: What is the positioning of our own brands? Which categories are suitable for own brands? What is the number of private brands? Brand positioning establishes the unique position of its own brand in the minds of consumers, and uses differentiated features to occupy the minds of consumers and win their favor; according to the positioning situation, combined with their own conditions, determine the categories with advantages to build their own brands. Products, highlighting comparative advantages; in the number of private brands, neither can be inaction nor excessive, and do what they can and continue to develop. Watson's successful experience can be used as a reference. In terms of positioning, Watsons targets the target market in white-collar workers, grasps the needs of modern people for health and beauty, brand positioning in “health, beautyâ€, and features high quality and low price. Customizing and selling its own branded products; in terms of categories, health topics are mainly health care products and vitamins. The beauty theme includes makeup series and daily care series. In terms of product expansion, Watsons counts the products sold and grasps consumer preferences. Choose promising varieties to do 2 to 3 years of brand blueprint depiction, and then select qualified manufacturers through competition, according to the own brand product standards to produce and supply. In this way, the number of private brands has grown from small to large, and after eight years, Watsons has developed more than 2,000 private label products, accounting for 20% of the total number of goods in the store, and market share accounts for 34%. The amount accounts for 15% of total sales.
Fashion Belt,Pu Fashion Belt,Lady Fashion Belt
Worldin Industrial Limited Company , http://www.dgbelt.com