Why the big power dealers are moving into their own brand market

Source: Internet
Author: User
Keywords Electrical business
Tags .mall beginning business electrical business electricity market join joined market

At the beginning of the month, Dangdang joined the United States officially involved in the 3C field, but also launched its own home brand home brands "when excellent products" and children's wear brand "Dangdangbaby", a series of "big moves" again to the electricity market this piece of the water is not calm the lake into a huge stone.

According to media reports, Jingdong Mall, Suning Tesco later released news, is expected to join the second half of this year's own brand apparel competition, and previously, as a pioneer of its own brand of Van Gogh goods have just come out of the huge loss of news.

Insiders revealed that as early as in 2007 Dangdang had modeled PPG and Van model, launched the name "Bondstreet" of its own brand, but because the market reaction is dismal, and soon forced off the line. This "comeback" is not difficult to see the current fierce competition in the electricity market, in order to consolidate the original customer base at low prices, must take the initiative to open up new "battlefield."

In this respect, the Chinese Academy of Social Sciences Information Research Center Secretary General Qiping said, in the case of tight capital chain, many of the website proposed in this year to implement strategic contraction strategy, will be "turf" to consolidate the advantages of the region, and through the "rich category, improve service, focus on the central region and the He believes that Dangdang at this time to start including clothing, such as a series of private brand merchandise, can meet the electrical business site in the strategic contraction, continue to attract old customers, cultivate new selling points of demand.

But the electric business big guy has moved to own brand market, or has caused many industry personage's worry. E-commerce analyst Shou sent the view, the integrated category of consumer brands more emphasis on the "product side" of the operating capacity, when and Jingdong's advantage lies in flow, logistics warehousing and distributors, suppliers constitute the overall operating advantages. "The launch of the Independent brand will have a great test on the integration of the stock and supply chain of the company, and the future is clear, it still needs time to observe." ”

In addition, some analysts pointed out that the private brand goods mainly by cash buyout, access to independent pricing rights, which brought a huge profit for the retailer, lifting the threshold of competition, but on the other hand also for its inventory backlog, cash flow operation buried under the "bomb" can not be underestimated.

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