What are the advantages of owning a private label in Mutual Supermarket?

The strategic significance of local retailers' "supermarket private labeling"

"Supermarket private labeling" is a necessary and important business strategy for retailers to develop to a certain extent, with strategic and tactical significance of at least -------

1, the tactical level ------- is the best choice to obtain high margins on merchandise sales in an increasingly competitive environment. p>

1, the tactical level ---- is the increasingly competitive environment to obtain high gross margins on merchandise sales of the best choice;

In the fierce competitive environment of the same industry, retail merchandise gross margin is generally below 20%, but the gross margin of private label merchandise is mostly able to more than 20%, and even some categories to reach 30%, is to obtain the best choice of high gross margins on merchandise sales.　　

2, the tactical level ---- is one of the safest and most effective category choices to fight price wars with competitors;

Price wars are the most effective means of retail enterprises, at present, we mostly choose the market well-known brands to do promotions, although it can play an immediate effect of killing, but there are also its unfavorable factors -----

The first one might be: today You do very low, tomorrow he does lower than you, tired to cope with, because it is not your exclusive resources;

The second possibility is: may be from the supplier to make up for the loss of profit costs, but the supplier because of the lack of profit can not be supported in the long term;

The third possibility is: well-known brands of merchandise suppliers themselves are also relatively strong, in order to balance the market pattern, it may be able to prevent the retailers from making big discounts (e.g., the conflict between Gome and Gree). In such an environment, if the retailer has a wealth of private label goods, then there are many more "exclusive secret weapons" at hand, enriching the price tactical options.　　

3, the strategic level ---- is one of the best ways to build customer loyalty

No matter what your positioning in the crowd, the key competitiveness of the supermarkets in the face of mass consumption is still "good value". The shortening of the supply chain and bring relatively abundant profit margins enough to support the "private label goods" in the low price positioning, in the customer's mind to strengthen the "good value for money" impression, for the establishment of customer loyalty plays an extraordinary role.　　

4, strategic level ---- is an important way for retailers to integrate upstream and downstream resources in the supply chain and to enhance their overall control

Retailers who have developed to a certain scale will have to enhance their control of the supply chain by intervening in the upstream supply chain to strengthen and expand their own advantages. ---The development of "supermarket private label" is one of the important strategic initiatives.

5, the strategic level --- is the retail enterprise breakthrough retail field to achieve long-term strategic profitability of the important puzzle. Innovation ---- brand upgrading, looking for higher profit opportunities

Currently most private label goods are the implementation of low-priced strategy, compared with similar goods cheaper than 10-20%, even so for retailers have a relatively lucrative profit margins. And all of them are developed in the market common high consumption frequency of the category. Can we break this mindset, the opposite, looking out for the market demand point, develop a differentiated, price transparency is not high, in the price positioning can support the medium and high positioning of the species, so as to obtain higher profits? ---- This is difficult, but I think it is completely achievable, but there are a few key points -------

The retailer's "private label" product line has been relatively rich, the overall strategy of the "good price" phase has been quite successful. The overall strategy of the "good value for money" phase has been quite successful, and consumers have a certain amount of loyalty.

"Private label" project operation has been very mature, easy to use, already have and have a deep product planning and design, market planning and promotion of strong marketing power to do the foundation. There are unique and keen market insights, accurately capture the potential market demand and opportunities.

Commodity packaging design to abandon the traditional "very simple" route, to be able to support the product price positioning in the high break.

This is actually what many upstream manufacturers are trying to do, and I believe that retailers, with the development and accumulation of the "supermarket private label" project, will be able to realize their own promotion of high-end price positioning, profits of more than 50% of the category. In China, many agents in the industry to do private labeling success stories have become a fact (emphasis added: not to let the marketing expertise of the enterprise into their own ineptitude in the field of manufacturing), the agent of the industry can do, the retail field of business can do the same!