Case:
When a well-known snack food company A introduced a newly developed high-grade nut barrel product in a regional store in North China, it was unable to conflict with the product function point and price of a high-end nut product produced by the store. Successfully negotiated admission, which has a certain impact on the sales of the A enterprise products of the terminal system.
In recent years, some terminal stores with certain strength have begun to set foot in their own brands – and to expand their own sources of interest by finding suitable OEM OEMs and creating their own brands. This has formed a "trend" and trend in some national chain stores. The emergence of these own brands will inevitably cause different degrees of "impact" on similar products of manufacturers. Specifically, these “shocks†are manifested in the following aspects:
1. The store reduces the number of existing items by limiting the number of items so that their own brands can be put on the shelves.
2. On the display, compress the existing display position of the manufacturer, or adjust the existing display position, so that the brand has its own advantages.
3, in the packaging design, take a close to the well-known brand design style to confuse the consumer's sight.
4. Adopt a low-price strategy to make your own brand more competitive than similar products of the manufacturer.
At present, more and more hypermarkets are beginning to produce their own branded goods. As the name suggests, “own brand†is a product brand named after a retailer or named by a retailer. This has long been common in the FMCG industry. According to the survey data of relevant market-adjusting companies, the share of self-owned brands in American supermarkets has reached 20%, and the proportion of domestic retail stores is still quite low.
In the major domestic supermarkets, the promotion position of Shangchao's own brand products and its logo are always more conspicuous than other similar products. As a supplier, it naturally has no right to restrict the store to operate its own brand. But this does not mean that it can ignore the store's own brand, but should take active measures. This includes the following two aspects: First, understand the true purpose of the store to introduce its own brand; Second, by taking appropriate measures to protect its own interests.
The real purpose of the store to introduce its own brand
Fundamentally, hypermarkets mainly rely on building a terminal sales platform to gain benefits. Therefore, the profit level of the terminal sales platform is more concerned about the hypermarket. Therefore, although the introduction of its own brand in the store can bring more benefits to itself, it does not change the positioning of the hypermarket to its own duties and functions. In other words, the store introduces its own brand in order to better serve its own terminal sales platform. Specifically, the purpose of introducing private brands into hypermarkets is as follows:
• Weaken the threat of manufacturers to themselves and enhance the market's own control over the market
In a sense, by introducing its own brand, the store can jump out of the role of a pure retail terminal. Strengthen management of suppliers by mastering the upstream supply chain. Imagine, when the store identity appears in front of the supplier as the brand owner and the operator, what reaction does the supplier have? Naturally, these suppliers will have a deterrent to enhance the market's control over the market. Especially after mastering the raw materials of the supplier and the corresponding production process, it can play a certain warning effect on the contract negotiation between the store and the supplier. The implication is that "Don't take me as a layman, I am very clear about this "catty"."
• Make up for the lack of merchandise gross profit and increase the sales profit of the store.
In a sense, the gross profit of any product offered to a hypermarket by a supplier is limited. And the hypermarket own brand can solve this problem very well. Since the raw materials are directly reduced from the raw materials, the profit margin left for the products is naturally far greater than that provided by the suppliers. This high-margin self-produced product can naturally bring considerable profit to the store.
• Reduce the impact of “price warsâ€
Today, as the hypermarkets open more and more, the "price war" between stores is getting stronger and stronger. In fact, the root cause of the "price war" is the "homogeneity" of similar products. Don't think that the store really likes the price war. There are other ways to do the performance and do something unpleasant. By introducing the store's own brand, it can reduce the damage of the "price war" to the hypermarket profits to a certain extent. After all, hypermarkets operate their own products. This kind of self-owned brand can only be sold in the store system. Due to the loss of comparability, the “price war†naturally cannot be played.
How should the supplier respond to the store's own brand?
For suppliers, when the store's own brand affects the actual interests of the brand itself, it should take active measures to deal with this unilateral interest behavior of the store. From the efforts and purpose of setting up own brands in the above stores, we can understand that the reason why the store introduces its own brand is basically to better build its own terminal sales platform, and ultimately to improve its own sales platform. The profit level. Therefore, suppliers should consider the response strategy from the starting point of the store's own brand:
• Highlight your sincerity and determination to work well with the store
When a store launches its own brand, the supplier should not show resistance. (In fact, the supplier's resistance does not have any deterrent effect on the promotion of private brands) and should seek opportunities to express their sincerity and determination to cooperate with the store. Don't let the store feel your threat to it. Where possible, you can also make some pertinent opinions and opinions based on your own analysis of the industry.
• Learn to “calculate†the store
In fact, for some terminal retail companies to operate their own brands, suppliers must find ways to help the store calculate an account. Let them know that the way to measure the benefits is not just the profit margin of the commodity, but also many other aspects. As a supplier, the benefits that it brings to the store are diversified, including the gross profit margin of the product, as well as various factors such as promotion, brand influence and image enhancement. The profit of the unilaterally calculated private label of the store is usually not comprehensive, and even there are risks. For example, the quality and hygiene standards of the stores' own brands can withstand the market inspection, the selection of the OEMs, and the marketing planning capabilities.
• “Strengthen†in the construction of its own brand image
Generally speaking, some of the private brands introduced by the stores are mostly low-end products, and they attract consumers' attention to themselves through low prices. For those suppliers who have a certain brand influence, the better way is to increase the customer's awareness of the brand by “developing†their own brand image. By putting customers to choose their own branded products, they exert “stress†on the buying market. What the customer wants is the last word.
• “Differences†between manufacturing own brands and corporate products
Generally speaking, the better preventive measures are the “difference points†between the manufacturing company's products and the store's own brands. This difference is made up of many aspects: price, product function, product packaging, and after-sales service. In this way, the company's products are naturally separated from the store's own brands, reducing their chances of direct confrontation and "touch points."
• Good customer service
Any conflict between suppliers and stores is ultimately a human factor. Because everything is done by people. Imagine if the purchase is willing to help you, even if the store introduces the same type of products, the trouble you encounter will not be big. Among them, there are many means of human operation, such as promotion time, product pricing, and merchandise display, all of which can find ways to resolve the conflict. After all, goods are dead, and those who run goods are alive. If you can get the support of your purchase, the company will be much better.
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