Depth Analysis Of Department Store How To Run Its Own Brand

The Chinese department store, which has been looking for breakthroughs in the joint venture and self run mode, has begun to try to develop its own brand.

However, its own brand has been in Europe and America for a long time, and has formed a tacit understanding with the local consumption structure and habits.

Brand clothing attracts more and more consumers. The sale of cheap clothing has slowed down, and the rate of private brand has always been maintained at 30%-50%.

In recent years, the diversification of clothing has become more and more intense. The development of private brand has been tested. It is not easy to maintain the original market share.

It is predicted that 5 years later, the US market will have its own brand interest.

It will drop by 25%.

Many old European and American department stores are breaking away with their own brands to the Asian market.

The trend of Europe is weaker than that of the United States, because the share of retail sales of department stores in Europe is relatively small, and the private brands of Martha and Marks&Spencer are evolving towards the high-end market.

Messi's department store, Penny's department store, Cole's department store and its exclusive brand ratio

Source: Changjiang Securities retail industry 2014 annual investment strategy.

Messi general store

Raw material

The rise of retail prices and the deviation of consumer expectations, the decline in the profits of the entire industry chain, while the rapid development of fashion brands, the advantage of department stores own brand gradually disappeared.

Messi's own brand accounts for 45% of the company's sales. Although the number of customers attracted by the 19 brands is quite large, sales are still on a downward trend.

A single category is also a factor that restricts its development. It focuses on clothing and household goods, and the unit price is between 20-50 US dollars. There is no obvious advantage in cost performance or diversity.

Messi's department store's own brand ratio and gross profit margin in 2002 -2010

In 2012, Messi stores wanted to enter China through the electricity supplier project, pforming the Chinese luxury sale website Jiapin network into Messi's online shopping mall in China, but the subsequent ignorance of the market did not make it possible.

In the early days, Messi department store invested 150 million yuan as an overseas investment to build the Messi area into China's online entry, mainly for men's and women's clothing.

Messi is a department store mainly based on the middle price, but he chose the flash purchase platform, Jiapin net, and at the same time, he did not have a deep understanding of this partner. He was in a stage of financial instability at the stage of the instability of the window, that is, to throw out the real gold and silver.

Martha, UK

Martha's "St Michael" brand is familiar to us. Its own sales department is designed and commissioned by the manufacturer.

90% of the St Michael is manufactured in the UK, with more than 800 major manufacturers. There are strict control systems in terms of design, quality and category positioning.

Its total British apparel share is 15%, and its selling price is 15% lower than that of similar manufacturers, with a profit margin of over 30%.

Martha also took the opportunity to expand the Chinese market, and was also embarrassed by the acclimatization of the Chinese market.

First of all, brand publicity is not in place. Liquor is also afraid of deep alley. If effective marketing is done, it is possible to avoid this situation.

Besides, they are not familiar with local businesses, and can not get a good location or rent too high.

The most important thing is Martha's confusion about the layout of China's domestic market. Its store is extended to the South and the north as the center of Shanghai, rather than the extension of the regional scale, nor is it the way to stabilize the first tier cities and expand the second tier cities.

Looking at Martha's single product situation, he inherited the serious tone and style of the British middle class, and the same price is quite different from the domestic market demand.

At the age of twenty or thirty, the trend of fast fashion consumers is much higher than that of famous brands. Martha, as a middle format, is not clear about market positioning.

Lotte Department store, Korea

Different from Japan's efforts to increase its own brand in supermarkets, South Korea has made quite distinctive features in its own brand of department stores.

As we all know, Korean entertainment is developed and idols have become an important part of the national industry pillar, and the development of its own brand is closely related to the entertainment industry.

Lotte Group has its own department stores, shopping centers and supermarkets. Its format is diversified.

Star series clothing is a private brand road which is built according to the main line of idols.

Lotte and all of this cooperation, developed the Star series of Woo-Sung Jung and Jae Lee men's wear brand "J Line", the market is expected to be good, then pursued the development of the new Star series, withdrew from Jin Yazhong jeans "Star Jeans".

It can be said that the Star model has both Korean characteristics and popularizing universality, which is very consistent with the sense of renewal and pursuit of fashion clothing.

Yansha

Yansha is the first retailer in China to taste its own brand. In 90s of last century, "Yansha" brand shirt was introduced.

The initial opportunity was bought out of the French trumpet trumpet product, and then the OEM was launched.

As a result of non strategic research and development, the follow-up market reaction is mediocre, and there is no more development.

Parkson has enriched its products and added neckties, T-Shirts, sweaters and so on. Apart from its experience, there was no market feedback analysis. It soon exposed the drawbacks of unclear positioning and failed to gain market recognition.

Yintai department store

Yintai and Yi Suo dress jointly invested in the women's clothing brand "just in time". Yintai provided brand and capital, and Aesop provided designers and store experience.

The brand is located in the young fashion middle end consumer group, the unit price sale is between 200-1000 yuan.

Yintai has made adequate preparations for the test water. From the completion of the marketing plan to the formation of the buyer team, the company went directly to the self organizing mode, and selected the cities such as Beijing and Nanjing for the first time.

From the point of view of brand expenditure, it saves a lot of money than other brands of the same kind.

Compared with the direct OEM, Yintai's exploration will make more use of market resources to integrate.

Golden Eagle department store

But Yintai only stays in the two-dimensional exploration structure. In the recent hot reports of Golden Eagle buying skinmint, we can see that more three-dimensional cooperation has appeared in the retail department store industry.

The Golden Eagle business has acquired the Skinmint 60% stake in the US brand dealer, which is dubbed the "big ticket" by many people.

The first three U.S. brands to be settled are POUR LA VICTOERE, ROVIMOSS and KELSI DAGGER, all of which are popular luxury brands.

In the light of trend, Jinying follows the trend of light luxury, connecting the new brand into the original positioning system, introducing more international brands through the buying system and agent system, and strengthening the operation of self operated mode. In the future, it will introduce buyout brand products in the nationwide stores.

Golden Eagle once again took the lead in the forefront of the industry shift. The voice of the industry is different. Some believe that this is just another way to add new store brand. In the short term, it will achieve the effect of increasing sales gross profit. However, the expansion problem of the main store can not be solved yet. Shanghai has closed the shop for a change of blood, and whether the buying system can really break through is unknown.

Nanjing new 100 acquisition of UK HoF

Another takeover incident is nothing more than the acquisition of House of Fraser, the old British department store in Nanjing, a subsidiary of Sanzi group.

The paction price is 200 million pounds, and Nanjing new 100 bought 89% of HoF company, which is the largest retail investment overseas by Chinese enterprises.

HoF's unique channel advantage is a general consensus for Nanjing to open the overseas market.

If HoF's unique brand becomes Nanjing's new hundred private brand, Maori increase and category expansion will come to hand. HoF has strong control over product design and quality, and special operation will reduce overall risk.

But whether the market will accept or not can not be reached.

House of Fraser category composition

House of Fraser

Through its own channel advantage and influence, it will be introduced into China to provide Asian supply chain, reduce the cost of proprietary brand, and 60% of the brand is private brand, instead of Chinese OEM, to increase profit margin.

In HoF, 51% of the product price is less than 40 pounds, 40-80 pounds products are similar to competitors, high-end sales increase the turnover, and the low end sales are weaker.

It may reduce the number of new hundred sales, expand the sales volume, increase sales and increase profits through the new hundred pportation to its sales channels, and extend their own brands to more channels.

In the UK, the market is basically saturated, and outward expansion is a better choice. As of January 26, 2013, the total assets were 907 million and the debt ratio was 88.86%.

Private brand development trend analysis

Generally speaking, the private brand is divided into fixed and fixed production, and the licensing is divided into commissioned processing and department store buyer buying.

For general retailers, consigned processing is the most widely used method.

The department stores bypass the processing links which are not good at business, and extend the original popularity to their own brands, which can earn an average profit margin of 30% higher than that of the traditional brands.

At the same time, there are risks in the development of its own brand. The gross profit of the basic clothing competition goods is between 50%-70%, the daily necessities are 20%, and the popular products are usually between 55%-75%.

If the inventory is too high, it will affect the capital turnover of enterprises, and the quality problems will make the original good corporate image greatly reduced.

Private brand appeared in the development of department stores for decades. The mode of the United States is relatively mature and has a considerable share of the market. Its uniqueness, scale and high performance price ratio are always the core.

In Europe, Britain, France and Germany also represent certain markets and have their own characteristics.

The Chinese side is often at the early stage of exploration, and consumers and markets are not yet certain. During the period, several department stores have tried the water, and the effect has been mediocre.

The three or four line cities have shown that their own brands have been developing in this way due to the weak soil of suppliers.

Compared with the department stores, similar to Japan is that domestic brands are mostly supermarkets, and the soil that department stores give to the breeding opportunities is not yet fertile and mature.

Trying to use private brand as part of strategy is that retailers are still tempted by their potential benefits.

Low processing costs can be exchanged for high profits. By differentially achieving fixed customer resources, market feedback and accurate grasp of market information are the benefits that private brands can bring to retailers.

The traditional department store brand runs counter to the luxury and fast consumption of the brand.