Depth Analysis Of Department Store How To Run Its Own Brand

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.

Focus on private brand as part of strategy.

Still tempted by their potential interests.

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 light luxury and fast consumption of the brand. The pformed brand is leading the business of fashion and avant-garde consumption. The theme department stores highlight the professional consumption culture, and take into account the needs of the high-end and popular life.

Discount department stores are developing rapidly and are recognized and welcomed in the three or four tier cities.

The expansion of chain stores is difficult. The department store operation is basically based on joint operation. The supplier system is divided into regions, and the scale effect is difficult to achieve. In 2014, it is a year when the department store industry develops and has difficulties. The domestic market is facing pressure to accelerate pformation, such as experience consumption, green ecology, buyer training, private brand development, personalized shopping experience service and cooperative development.

And strengthen brand building.

For the future development of department stores, entities should pay attention to information management, e-commerce innovation, diversified channel sales situation development, self run mode has become the main trend, and the establishment of new Internet of things and other content.

The test water is much less water, which is different from the supermarket's own brand's requirements for the super high life necessities. The customers of department stores are obviously more sticky in pursuit of brands.

At the manufacturer level, the supply price is low and the cost is saved. Unless the consumer can get the greatest advantage at the lowest cost, the homogeneity product is hard to escape, and the frequent promotional activities in the daily shopping mall have increased the psychological expectation of the customers.

From the perspective of consumer demand, income structure, product prices, packaging methods, category changes, functions and quality all affect consumers' choice of brands no longer.

There are still some mistaken ideas about its own brand in China. There is a lack of correct understanding of the strategic significance of developing and operating its own brand goods, and the types and marketing methods seriously restrict the breakthrough and development of quality.

Private brand with overseas DNA, is now confused in the department stores can test the waters of the field, the front is a beach or a few Bay springs, may be difficult to completely change the industry itself embarrassment and confusion, the original agency level break, the interests of the structure pushed to rebuild, is the most painful matter, no matter how much play, the way out is better than staying in place.