Watsons Sword Takes The Lead &Nbsp; Where Is The Private Brand Shop Road?

If one day, when you go shopping, walk in.

Sword go sideways

Last March 19th, Watsons

Compared with Watsons's ordinary stores, its own brand

At the beginning of the opening ceremony, the responsible person of Watsons also said that the unique brand store with its unique and powerful sales promotion means and simple and brilliant product display will undoubtedly further enhance the brand's market awareness and product reputation, and create a refreshing fashion shopping experience for consumers.

It is rare to set up a private brand store with a retailer's identity. Watsons's sword is taking the lead and launching its own brand store, which is another important work of Watsons in the shop development. It can not only make up for the pressure of opening stores, but also make many retailers unable to catch up.

Watsons's own brand can fully meet the personalized needs of consumers, which is valuable in the era of homogenization of products.

Compared with price factors, consumers prefer personalized products. When launching every brand product, Watsons will spend much manpower, material and financial resources to conduct a lot of preliminary research on consumers, and collect the latest information and preferences of consumers.

It is fair to say that Watsons's own brand products are tailored to consumers who pursue individuality.

In addition, after many years of deep ploughing, Watsons has long been known, and its recognition is not the same. This affects consumers' recognition of Watsons's own brand in a subtle way.

In this way, when Watsons launches its own brand new products, the promotion cost will be greatly reduced, or no publicity at all, so that products can be liked by consumers.

The myth continues.

This is the two unique advantage of Watsons in opening its own brand store, but Watsons has not produced a myth.

"The cosmetics observation" chief white cloud tiger disclosed, Watsons's own brand specialized shop has not been like the ordinary shop, has developed smoothly, has declared the closing.

It is so embarrassing for the private brand that has been in full swing at ordinary stores. For such a result, it is estimated that Watsons did not expect to come so fast, and had not seen the dawn of dawn.

For private brand sales in Watsons's ordinary stores, the official figure is 15%, and industry insiders say that this proportion has reached 25%, and its senior executives said that the long-term goal of its own brand is to achieve 30% of the overall business.

There are indications that Watsons does not intend to slow down the pace of its own brand development. It is believed that 30% will not be the ultimate goal. Private brand stores are the best evidence.

But with Watsons's own brand, it only focuses on a store, and makes some adjustments to store image and store display. How can consumers not buy it?

In the industry expert Yuan Gengsheng's view, in fact, the private brand shop does not have any new ideas, only Watsons has the background, it seems a bit mystifying, just like Watsons's concept store.

"With regard to the advantages of Watsons's own products, running a shop like this is very stressful from a purely operational point of view.

There are not many successful cases of single brand franchised stores. Moreover, Chinese consumers do not like the consumption of products in single stores, just as L'OCCITANE, Herborist and THE FACE SHOP are developing slowly in China.

Yuan Gengsheng explained further.

On the other side of the Wujiang Road, another franchise store staff described this way: Watsons's private brand stores are not satisfactory. Compared with ordinary stores, the flow of people in this store can only be described by "open doors".

High facade rents may also be one of the reasons for its premature death.

It has been reported that when the four seasons square mall opened in 2008, its facade rents were 35 - 45 yuan / square meter / day. If the price is calculated in 2008, and the lowest price is 35 yuan / square meter / day, the rent of Watsons's own brand specialized shop is about 63000 yuan per month.

It is not surprising that the rent has doubled over the past two years.

People familiar with the matter also revealed that Watsons's own brand store is "quite expensive."

But we don't know exactly how much it is.

What's more, the "general performance" of this store is probably the most appropriate and best choice to end early.

The prospect is still expected.

Watsons has failed in its own brand store, but the white cloud believes that private brand stores still have certain opportunities. After all, single brand category is one of the future trends of cosmetics franchise stores.

As far as the international market is concerned, the scale of single brand stores is relatively large in Japan, Korea and other countries.

In addition, compared with the traditional agency to the retail mode, private brand stores can save many middle links, and manage more efficiently. At the same time, it also greatly strengthens the control of brands.

There is no doubt about the strength of Watsons's own brand store. However, "uncertainty is too many" and whether the future climate can be formed is uncertain.

Watsons's own brand includes skin care, bath, hair care, styling, women's care products, men's care products and health care products, etc. there are more than 2000 kinds of single products, but these 2000 kinds of single products account for only 1/3 of Watsons's total merchandise.

The concentration of these commodities in private brand stores has greatly reduced the richness of their products and is no match for ordinary stores.

Adding private brand stores to shop will not be too fast, which results in some limitations in its distribution. When consumers find the difference between private brand shops and ordinary stores, how to attract and retain repeat customers is a matter that Watsons must think about if it wants to do something in its own brand store.

The rise of the Internet has also become a stumbling block for the development of private brand stores.

In the 80 and 90s of last century, single brand stores were popular in Japan and Korea, which was closely related to the immature Internet market at that time.

Now the Internet era has arrived and has become an irresistible trend. If the private brand products enter into e-commerce, the business of the entity store will be greatly impacted.

In addition, we need to face the rising cost of rentals, personnel and so on, which makes the development of private brand shops worse.

As the first crab to eat, Watsons fell down this time. But is the development of private brand shops ending?

The revolution has not yet been successful, and Watsons still needs to work hard.