Smart Consumers Choose Their Own Brands.

Last week, the global retail branded products Asia exhibition, 2014 Shanghai, held at the Shanghai International Convention and Exhibition Centre, is a microcosm of the rapid development of the domestic retail brand industry.

According to one of the organizers, Shanghai International Sourcing Center Co., Ltd., 348 high-quality manufacturers participated in the exhibition in 19 provinces and cities and more than 20 countries and regions in the world. The number of exhibitors and booths increased by nearly 30% compared with last year. Over 90% of overseas goods were the first time to enter the high-quality products displayed in China.

All the exhibitors are quality suppliers who can customize OEM for retailers. A large number of professional spectators are sincere retailers with large orders. It is not easy to find their favorite ones in the past. Now the two turns in the exhibition hall are likely to lead to the upper hand.

Yao Zheng, Secretary General of the Shanghai brand authorized enterprise association and its own brand Specialized Committee, told reporters that the research report has made some suggestions to the relevant government management departments and retail enterprises.

Successful business pformation can drive the continuous prosperity of the retail market and stimulate domestic demand. The government needs to give some substantive policy support to the innovative enterprises in the early stage.

We should strengthen the construction of private brand service platform and gradually introduce the unified reference standards for commodity inspection and packaging in all regions of the country.

Retail enterprises must calm down and formulate phased plans for different periods on the basis of long-term strategic planning.

For example, retail enterprises have a temporary difficulty in jumping to private brand management. It is suggested to start from strengthening self employment, gradually reduce the mode of consignment and joint operation, change the profit pattern, and wait for the time to mature before moving towards private brand.

The headquarters of retail enterprises must include their own brands in the overall development strategy of the enterprises, and take their framework construction, process system and incentive measures into consideration at the strategic level, so as to ensure that the enterprises can form a resultant force in promoting the development of their own brand products.

"Win in the opportunities, win in the mode - the retail brand in the new era of China", which is the theme of the seminar on private brand strategy management held during the exhibition, and also the winning way of the development of retail private brand.

Yu Haisheng, manager of Zhangjiakou North Yan oat Food Development Co., Ltd., told reporters that they first came to participate in the exhibition and came here to find retailers. They also brought a lot of oatmeal on the Bashang plateau. They said they wanted to let retailers see for themselves what kind of oats were in the best oats growing area. Their oatmeal gruel has been directly supplied by Beijing Jing tie Train Service Co., Ltd. Kang's travel system, and sold in high-speed rail and related stores.

Cixi Jiali Travel Products Co., Ltd. obviously knows a lot about its own brand. The display board lists the challenges faced by the retail supermarkets: low gross margin, low product differentiation, increasing operating costs, and squeezing the traditional supermarket by online shopping.

Under the impact of all sides, the way out is private brand.

"Private brand is the first choice for smart consumers. This is the case all over the world."

Gong Dingyu, executive director of Yue you (China) supermarket chain Co., Ltd. said that in recent years, their own brand has been developing rapidly. So you have an electric business store or a store's electricity supplier. Its own brand has a good performance price ratio and a sense of security. In a few years, their own brand has accounted for 1/3 of sales from zero to this year.

The three companies are obviously in the different stages of developing their own brands. It also reflects the fact that in recent years, with the constant price war between the traditional retailers and the electricity suppliers, the major retailers have their own brands.

Compared with the development of 10 years ago, it has quietly changed.

The private brand that used to occupy the market at low price and running volume has now produced the "combination boxing" of quality, packaging and marketing. Both the market share and the consumer acceptance, the recognition and reputation of its own brand have been improved, and it has become an important part of the pformation of retail enterprises.

With the growing development of private brands, both traditional retail enterprises and e-commerce enterprises are conducting retail private brand development experiments through different channels.

In the traditional retail industry, from the Department Store represented by Wangfujing to the supermarket represented by Carrefour, WAL-MART, Huarun, and Europe, and then to the convenience stores represented by the family and 7-11, we can see the special retail brand products.

tradition

The strong enemy electric supplier also saw the trend of retail private brand, and the situation of intervention gradually increased. Lok Feng Network launched its own brand cosmetics "Jing Jia myth", Dangdang also began to do its own brand underwear and even cashmere scarves.

Nevertheless, they are not good at retail.

The way of supply chain, marketing, and retailer's own brand is not smooth.

At the exhibition, a research report on "enhancing the competitiveness of China's retail private brand" was launched. Through in-depth research on 107 domestic retail enterprises, the report reveals the characteristics of the domestic private brand industry:

Among all the retail enterprises surveyed, the proportion of enterprises that have developed their own brands accounted for 54%, among which private enterprises accounted for the highest proportion, and the average market share of private brand products was less than 3%.

First, second tier cities and large scale retail enterprises start their own brand business late. In the process of developing their own brands, they pay more attention to improving gross profit margin; three or four line cities and relatively small businesses start earlier on their own brand businesses, and pay more attention to commodity differences.

At present, the majority of domestic private brand products take advantage of penetration pricing strategy to seize the market share of brand products. Regardless of the location of their own brand products, both high and low grade brands should pay attention to maintaining the advantages of brand products.

Under the influence of penetration pricing strategy, quality has become an important support for its own brand products, and the most willing suppliers for retail enterprises are foreign trade factories and domestic brand manufacturers.