Holland'S Largest Supermarket Chain, Howard'S Own Brand Is Doing Very Well.
Retailers are beginning to wonder what we are missing when we make our own brand, because many retailers lack an in-depth thinking before they start to operate.
To cultivate a private brand requires overall planning. As long as retailers ensure that the upper and lower levels are progressively advancing, it is likely to achieve 50% from 10%.
Generally speaking, any retailer doing its own brand should start with the category that one is best at.
There are 9000 retail outlets in 27 countries around the world. Holland's largest retailer, Howard, is still growing at a fast pace. In addition to relying on the advantages of an international supply chain, a mature private brand is another weapon that it takes to occupy consumers.
In the European market, the highest proportion of self owned brands is Britain and Switzerland, which are 47% and 43% respectively.
Therefore, there is a common view that retailers in Europe do their own brand development, that is, the proportion of 50% is a critical point of their own brands, once it is achieved, it is difficult to surpass.
But China's retailers are far from the line, that is, the success of their own brand development will be related to who can reach the new world of China's retail market.
In the past few years, because of the impact of the electricity supplier and the adjustment of the economic structure, the traditional retailers are eager to find a new breakthrough point. More and more people are looking at the development of their own brands.
But most retailers have no more than 10% of their own brands.
When customers choose the same products, they choose more brand names.
So what can a domestic traditional retailer do to cultivate customers' trust in their own brands and guide their customers to buy their own brands? Edgar Edgar, a vice president of the original brand, believes that the fundamental reason for the difference in the penetration of private brand is the acceptability of consumers to their own brands. (Elzerman)
This requires all-round cooperation from strategic planning to specific implementation.
Retailers are beginning to wonder what we are missing when we make our own brand, because many retailers lack an in-depth thinking before they start to operate.
To cultivate a private brand requires overall planning. As long as retailers ensure that the upper and lower levels are progressively advancing, it is likely to achieve 50% from 10%.
Generally speaking, any retailer doing its own brand should start with the category that one is best at.
A retailer familiar with juice production is going to make fresh private brand. Failure is almost inevitable.
Therefore, the development of new products is a key step. It will graft its own brand categories into the category that they are good at, and lay the foundation for customers to use their impression as their own brand to invest in the market.
When retailers develop their own brands, it is normal to fail to achieve the desired profits.
But some anxious retailers will subsidize their own brands with profits from manufacturers' brands, which is not conducive to the development of their own brands.
The proportion of private brands in the United States is higher than that of the European market. Edgar thinks that this is because most retailers in the US are short-sighted and pay attention to making money. They are always thinking about how to recover the cost at the fastest speed.
Retailers in Europe pay more attention to cultivating loyal customers for their own brands. Their private brand is a long-term investment process.
First, an initial private brand needs to occupy 15% to 20% of the market share.
At this stage, retailers should focus on the development of new products and achieve category coverage.
In other words, retailers should open up other products after opening their own brand market with their own specialties.
After all, what we need to do is to become a brand rather than a sales brand store.
In the process of realizing category coverage, the positioning of controlled goods is crucial.
Some domestic retailers simply interpret their own brands as "winning at a low price".
In fact, this is a "short-lived" approach.
Customers who can be attracted by low prices are always attracted by lower prices, which can never cultivate customers' loyalty to their own brands.
The correct approach should be to position the focus of private brand as a mid-range commodity.
The middle end customer group is the main selling object of retailers. Such people will be attracted by genuine quality goods and form a buying habit.
As long as the quality is good enough, 1.99 yuan and 2.99 yuan are basically no difference for them.
When the market share of private brand reaches 30% to 35%, it will enter the second stage.
Customers have established a basic trust in their own brands, and retailers have to optimize products and improve sales.
While satisfying customers' needs, we should improve our profits and achieve win-win results.
The so-called optimization of commodities, simply focus on category and brand.
Administration
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At this time, retailers can no longer pay attention to the middle products simply, but also make their own characteristics.
On the one hand, this feature refers to a new concept of customer concern for its own brand. An organic cauliflower is more eye-catching than "high-quality cauliflower".
On the other hand, it is the optimization of the category. After the first stage of development, retailers will have a general understanding of the operation of each category. Then the second stage will involve the question of how to choose products.
Retailers need to increase or delete a category on the basis of overall planning so as to improve the dynamic sales rate of commodities.
The development of private brand has become a real brand that can compete with manufacturer's brand.
In order to maintain long-term brand effect, retailers need to return to the essence of commodities.
Pay more attention to quality management and packaging design.
Compared with manufacturers' brands, private brands are controlled by retailers from the source of production to the sale of shelves, which actually reduces the difficulty of quality management.
At the same time, in order to enable consumers to notice the private brand on the shelf at a glance, highlighting the uniqueness of packaging design is also indispensable.
Edgar has described this scene for us. In the window of the Fifth Avenue, there will be private brand clothing, and its manufacturer will probably be a supermarket.
What does this mean?
This shows that the private brand has entered the last stage, and its market share has reached 45% or even more.
At this stage, retailers already have the ability to control brands. Although they can not say they want to do anything they want, developing various derivative services is a matter of course.
They can graft more projects on the basic brand category of their own brands. Wu Xiaobo's blue lion Financial Publishing Group has started selling wine, and developing a tourist product in the supermarket is not an Arabian tale.
In order to make the brand itself have greater value, strong marketing is essential.
Our own brand can also be like the "marketing God" Durex to explode friends circle, of course, it is a way to applaud and applaud.
For private brands, it is not enough to have a strong strategy, but also need strong execution.
If in a company, only the people of the development group are promoting their own brands, this is doomed to be only a game of flying cats.
On the contrary, if employees mention a certain category, the first recommendation is their own proud brand, which means that the company has truly implemented its own brand project from top to bottom.
We always say that we do not fight the unprepared war. The development of private brand is the same. We need to have a comprehensive assessment before we start.
From a large framework, it can be divided into strengths and weaknesses, opportunities and threats, and to understand others on the basis of understanding oneself.
The so-called "self" is so large that the operation of a company is limited to products and display.
Others refer to the market, customers and competitors.
Based on the above assessment results, retailers need to develop a private brand target.
How much of the total share should be accounted for, how much total sales should be achieved, and how much total profit should be achieved? These three problems need to be considered from the whole brand, and should be subdivided into various categories.
In terms of brand structure, it can be divided into four series: super value brand, intermediate brand, high-end brand and organic brand, all of which need to set reasonable and accessible goals separately, and the responsibilities of other departments such as design and operation need to be clearly defined.
As time goes on,
Retailer
We need to put category management into the promotion of private brand market share.
We can divide the brand level into five categories: brand loyalty and brand a high value brand, private brand, low price winning B, C brand, and economic brand for low-end customers.
In the process of snatching customers, private brands can easily replace B and C brands.
What retailers want to do in the future is to gradually meet the expectations of customers, optimize their own brands to class a quality, and B level prices, constantly optimize the category and promote the pformation process.
Customers will be influenced by many factors when choosing goods. Retailers must use all kinds of means to let them notice their own brands.
So we need to display, replace the goods to allocate the appropriate shelf space, and also reflect the needs of customers.
For example, retailers can place their own brand mid-range SKU on the right side of the domestic brand, and the high-end SKU is placed on the top shelf, and those super value goods are displayed at the bottom of the shelf.
Although you can't make a low price by making your own brand, you must admit that
Price promotion
It is the most efficient way to attract customers' eyeballs.
Promotion of private brand is all right, but attention should be paid to strategy.
Take the high-end brand as an example, promotion is just to attract customers, not to make the sales promotion too deep, otherwise customers will be puzzled about the quality.
All in all, private brand needs high visibility to show it, though its sales can not compare with the sales of domestic brands, we still need to add it to the poster.
When our private brand is mature, we can negotiate with suppliers.
A typical food retailer is very sensitive to the profit changes brought about by the purchase conditions, reducing the purchasing price by 1%, and raising 15% of the original profit under the same conditions.
To achieve this goal, retailers need to develop different purchasing processes for different categories. Is it a cooperative or tough negotiation?
Retailers' toughness should also be reflected in the "zero tolerance" of quality problems.
For customers, goods with quality problems will always be included in their purchase blacklist.
Private brand marketing team should not only formulate detailed quality policy, but also convey it.
Let the quality inspection team of the own brand communicate the quality inspection rules clearly to all relevant aspects, and then do the test in the factory of the potential supplier to ensure the quality and safety of the product.
If approved by the quality inspection team, the purchasing team will start negotiating with the supplier price.
But this does not mean that the quality control is over. The quality inspection team and the supplier should have a tough dialogue. If the product has problems, the supplier will make a commitment to no longer have similar events and give corresponding solutions, or directly go off the rack, and at the same time, look for and develop alternative products immediately.
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