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    WAL-MART Implements Its Own Brand Addition And Subtraction

    2018/4/26 13:25:00 322

    WAL-MARTBrandMarket

    From CEO to shop staff, every employee is required to contribute to their own brand.

    Wal-Mart

    As an internationally famous hypermarket, it has its own advantages.

    brand

    Attitude.

    According to the world clothing and shoe net, in April 25th, reporters learned from WAL-MART that the group will adjust its own brand strategy, streamline its previously owned brand and integrate it into three brands, Marketside, George.

    Statistics show that as of last November, WAL-MART had 13 private brands.

    The streamlining of the brand does not mean WAL-MART's disregard for its own brand. WAL-MART says it hopes its own brand will account for about 20% in the future.

    In the view of Wang Yanren, senior director of WAL-MART's own brand in China, WAL-MART is adding category and brand subtraction to its own brand.

    In fact, at present

    market

    In the environment, the development of its own brand has been regarded as a trump card to attract customers by the hypermarket, but it is not easy for most domestic chain retailers to develop their own brands.

    WAL-MART integrated business line

    "Private brand is a very important part of WAL-MART's development strategy in China, so we have very ambitious goals in our own brand."

    Wang Yanren told reporters that with the mature market as the benchmark, WAL-MART China will also have the opportunity to own more than 20 points in its own brand as in Canada and the US market.

    In order to achieve this goal, WAL-MART is adding brand addition and brand subtraction to its own brand.

    WAL-MART China has developed a total of 13 series of self owned brands. The three most popular brands are: Great Value Hui Yi mainly covers food and non food products, Mainstays Ming Court mainly covers household products, and Faded Glory is mainly covered with clothing products.

    However, consumers will gradually find that Mainstays and Faded Glory will fade away like other private brands, while Hui Yi and new Marketside brands will have more and more commodities. In the future, a brand named George will also appear in WAL-MART stores all over the world.

    "WAL-MART's own brand will be divided into three core categories: first, fresh food, followed by packaged food and daily chemicals, as well as clothing and textiles.

    The three major categories will have their own brand positioning, classified brand names, exclusive marketing activities and promotion methods to communicate with customers.

    Wang Yanren said that according to the development plan of WAL-MART's own brand, Hui Yi will be responsible for packaging food and daily chemical products of its own brand. Marketside currently has only baked goods, and will gradually expand to fresh food in the future. George is a new private brand imported into China, focusing on clothing and textiles.

    Private brand is hard to open up

    It is reported that Wang Yanren has been engaged in purchasing work for more than 20 years, including 16 years focusing on the development, development and management of his own brand.

    In her opinion, the differentiation of goods and services is the key to the core competitiveness of retail enterprises, and the development of private brands is the most important part of realizing the competitive advantage of differentiated products.

    At the same time, private brand is conducive to expanding the differentiation of retail enterprises and enhancing customer adhesion.

    But Zhang Zhiqiang, executive director of China's own brand alliance, also pointed out that the new retail stores of domestic retail enterprises have sharply reduced, and the pressure of development has been increasing.

    In the view of the above, domestic consumers still stay at the stage of which supermarkets are close to buying convenience and where to buy, which indirectly indicates that there is almost no differentiation among retailers' products.

    In fact, consumers in WAL-MART stores can see 0.8 yuan a pack of Hui Yi wipes, 10.8 yuan triplex and 15 bottles of lactobacillus drink.

    Low price is often the first card produced by its own brand. Through the docking factory, the price of goods is often 20%-30% lower than that of the first line brands, while gross margin is about 20% higher. This is also a reason why retailers are keen to make their own brands.

    However, the development of domestic private brands has not broken, and there is no authoritative statistics on the development of private brands in the Chinese market.

    The latest survey was conducted in August 30, 2016 by the purchasing Committee of China Chain Store Association.

    There are 27 enterprises involved in the survey. The results show that the private brand is still in its infancy, accounting for less than 6% of the sales, and the development capacity of its own brand items is not high, especially the number of fresh products.

    Zhang Zhiqiang told reporters that at present, domestic retail enterprises have just entered the low price link of their own brands, which is related to the maturity of retail and consumer development.

    Referring to the development experience of Western retailers' private brand, low price is the initial stage of private brand, and then develops to the stage of differentiation and brand image.

    In Zhang Zhiqiang's view, the development of its own brand requires retailers to understand products and manufacture, which is very good for the upstream part of the supply chain, while domestic retailers lack such a talent pool.

    In addition, domestic retailers are not good at locating target customers and making value proposition to create brands.

    {page_break}

    Brand management takes time.

    "At this stage, WAL-MART China's private brand is developing at a high speed, and it will better communicate with customers by streamlining the number of brands."

    Wang Yan said.

    However, while the number of brands is decreasing, the category is expanding rapidly.

    Taking Hui Yi for example, in October 2016, WAL-MART to reporters, WAL-MART to reporters in October 2016, WAL-MART to hands, and in October 2016, WAL-MART told reporters hand, Yi suitable for food and non food, a total of 585 items, and the main coverage of food and non food hand, a total of food and non food hand coverage hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand hand liquid and so on quickly eliminate goods.

    "The commodities we develop are the commodities that customers will use every day from morning till night.

    Every household will have a very high frequency of use. "

    Wang Yanren introduced that WAL-MART developed its own brand products mainly in three major categories. One is that there is no leading brand in the market at present, one is the livelihood products, and the other is some competitive products looking for subdivision space.

    These products, WAL-MART, communicate directly with 250 different factories to save intermediate links and marketing costs, and ensure that the average quality of goods of the same quality is 30% cheaper by monitoring two times a month.

    It is reported that WAL-MART's own brand is more mature in foreign markets such as Europe and the United States, for example, the penetration rate of the UK's private brand is about 50%, and in the local retail industry, if it is lower than this proportion, it is likely to show that it has lagged behind the market.

    "We believe that the Chinese market will also have the opportunity to do the same as the European and American markets, or share more than 20 points like the Canadian and American markets.

    But this requires enterprises to do things in a more sustainable way. They need to operate well rather than simply seeking fast.

    Wang Yanren said.

    More interesting reports, please pay attention to the world clothing shoes and hats net.

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