Five manufacturers push their own brands across the gap: return to rationality after burning money

Perhaps the "arms race" and the price war cost too much energy, the domestic electric business enterprise finally turned to return to the essence of retail-goods. Recently, Dangdang quietly online its own brand. In fact, the reporter survey found that the domestic mainstream of foreign electric power companies to develop their own brand eyeing.

Learn from the entity retailer

Electric dealer launched its own brand campaign

Recently, Dangdang own brand "when excellent products" and "Dangdangbaby" officially on line, formally joined the retail enterprises own brand army.

The reporter sees in Dangdang, two own brand's commodity quantity is not many, but the user appraisal is higher than the same price other brand goods. Dangdang Public Relations Director Guo He in an interview with reporters frankly, "early, we will be quality, materials, etc. as a breakthrough."

In fact, whether it is a foreign-owned electric business giant or domestic business enterprise, has long begun to develop its own brand.

Amazon's own-brand reader, the Kindle, has been seeking sales in China since 2007, when it entered the Chinese market with its acquisition of a network of excellence, but for a variety of reasons has not been achieved. There have been more news that Amazon has been the "Kindle" a good Chinese name "gold read", is about to enter China. Another large foreign electric dealer new Egg network under its own brand "Rosewill", has been launched in China this January.

The above companies dabble in the field of their own brands, there are also electric companies to their own brand eyeing.

Jingdong Mall an insider revealed that Jingdong Mall as early as a few years ago has the idea of the layout of their own brands. Before, and even repeatedly mentioned the issue of naming, but up to today, Jingdong Mall's own brand still stay in the planning stage.

The "successor" of the consumer market, Suning, has begun to lay out its own brand business. Yesterday, Suning Tesco executive vice President Li bin in an interview revealed that Suning easy to buy their own brand merchandise will be in the next step on the line, the specific plan will be announced in June.

In addition, some of the vertical category of consumer also began to test the water own brand and similar business model. For example, the Lok Tao Network (microblogging) and Fruit Ninja, Angry Birds and Plants vs zombies, such as popular mobile game developers to cooperate. Before the public said "will not develop their own brands," The good music to buy CEO Li Shubin, also recently revealed "the need to do their own brand".

is 10 times times the sales profit of the agent

Own brand can break the low profit predicament

Driven by relatively low costs and relatively high levels of return, the development of private brands has become a lifeline for retailers to profit. Because, at present, despite the large sales of mainstream electricity dealers, but mostly in the situation of profit and loss.

As Dangdang CEO Guoqing said, its own brand clothing gross margin can reach 30%-60%. A person close to a large electric dealer also calculate a account for reporters, sales of Nike, Adidas and other brands of large network shoe city, its gross margin of less than 3%.

"Where the customer goods sold a price of 99 yuan, the price of 12 yuan, the ultimate discount price of 9 yuan underwear can earn 4 yuan." But if the sales agent brand underwear, it may cost 60 yuan to earn 4 yuan, this is how people envy things. Said a business person in the industry.

In contrast to the general low margin of the electricity dealers, the private brand is indeed a tempting big cake. Because in the "capital of the Great God" after the retreat, the lack of hematopoietic capacity has become a big problem in front of the electrical business. With independent pricing power and higher than the proxy brand 2-3 times the profit, so that the electricity dealers see the hope of turning over.