No. 1th store own brand strategy suspect in name only

Absrtact: The own brand for the electric business, I'm afraid it just gone. After the Dangdang stop own brand clothing, 1th shop own brand clothing Bestluck also face adjustment. Beijing Commercial newspaper reporter investigation found that, in addition to underwear and stockings, bestluck All categories are in short

The own brand for the electric business, I am afraid it is just gone. After the Dangdang stop own brand clothing, 1th shop own brand clothing Bestluck also face adjustment. Beijing Commercial newspaper reporter investigation found that, in addition to underwear and stockings, bestluck All categories are in stock, especially in the T-shirts in the season, No. 1th Store said, Bestluck did not suspend the sale, but the latter development strategy is not clear.

Bestluck last May on the line, OEM production, the initial launch involving 500 SKUs (inventory units) have underwear, t-shirts, socks, etc., the main "safe and comfortable."

In the planning of shop 1th, apparel is the largest category of online turnover and trading, from its own brand, hoping to expand its market share in the apparel sector. Store No. 1th as an important supplement to the future business, "independent of the 1th store's consumer electronics, food and beverage, department store, the three major sectors, the newly established apparel private brand team will directly to the 1th store CEO report results." Gege, 1th, the chairman of the store before the Beijing business newspaper reporter interviewed also said, "in the quality of doing well, style well, customers like the time, it is possible to enter the real store Wal-Mart, or even Wal-Mart's own electric business channels."

A year later, however, Betsluck not only moved beyond the broader channel but lost independence, and the team was merged into the popular department store. According to the above 1th store related Personage said, the popular department store is this year the company's key development strategy, the commodity is out of stock because before to Betsluck carried on the famous special sale activity. Consumers said that the original price of 49 yuan, 59 yuan T-shirts, 199-dollar polo shirt during the event to 14.9 yuan for sale, very cheap. According to the Beijing Commercial newspaper reporter observes, in the Betsluck on-line one year time, the category always lingers in the place, like underwear, T-shirt and so on, the 1th shop celebrates the activity, the Bestluck brand T shirt even becomes the activity gift.

Gege has said that the quality of controllable, high gross margin is the number 1th stores into the field of clothing one reason. For the profit of its own brand clothing, Dangdang CEO Guoqing in an interview revealed, "clothing gross profit margin is 60%, more than books." However, Dangdang's own brand clothing launched in March 2012, after 1.5 was stopped.

Guoqing confessed that, from the retail industry's law, clothing category only sales reached 10 billion yuan, only suitable to do their own brand, because this time there is enough to support the user, in order to allow the high margin of the own brand to produce value. "It's too early for us to push our own brand clothes." ”

Up to now, in addition to Dangdang, No. 1th Shop, the five-avenue luxury network has also launched its own women's brand s&s, in addition, Beijing newspaper reporter from the outdoor practitioners learned that Beijing East has launched a outdoor backpack and other apparel products surrounding. Lok Amoy Network also in April 2012 has launched a precisely, Levi, MO-Greek, Maiwei, c+ and other five footwear own brands. "Whether online or offline, do own brand is because they want to improve their own gross profit margin, master pricing power, enhance the control of the supply chain." "One shoe industry veteran Personage says, this is also the reason that the retailer is on the way of the own brand.

In the view of the above, the profit of the own brand still depends on the quantity to support, brand recognition in the current stage is still impossible to talk about. And before the brand formation, consumer price sensitivity is very high. The electric dealer must continuously provide "the high quality low price" to develop consumer's brand dependence and the loyalty degree. Even in the domestic electricity market occupy a certain share of the customer prudential goods, now still in the lower price route.

These people said that long-term low prices will make the electricity business can not find a profit point and difficult to insist.

Five Avenue Luxury Network CEO Sun Yafi believes that the electrical business light has customers and data is not enough, the apparel industry in particular needs team professionalism, understand market demand.

In Sun Yafi view, now the introduction of its own clothing brand of the main business is not clothing, clothing is only part of its category expansion, in the overall framework, as a department of the existence of a short period will not be able to achieve performance requirements and be laid off.