Electric Providers Have Launched Their Own Brands.

< p > after Dangdang and fan Ke Cheng products, shop No. 1, based on the image of online supermarket, has recently confirmed that it has launched "a target=" _blank "href=" //www.sjfzxm.com/ "> clothing /a" own brand "BESTLUCK".

Tong Jie Ming, senior merchandise director of shop No. 1, revealed that its own "a target=" _blank "href=" //www.sjfzxm.com/ "brand clothing" /a "will adopt the way of OEM production to control cost and quality. In the future, its own brand will become an important block for the growth of shop No. 1.

However, the development of self owned brands by electric providers is not a universal mode. There are also risks that need to be circumvented.

It is hard to say whether the "BESTLUCK" of shop 1 can develop its online clothing layout as well as its name.

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< p > < strong > electricity providers have launched their own brands < /strong > < /p >.

Less than P, the launch of its own clothing brand has become a common way for many e-commerce providers to develop.

There is a fast fashion brand with customers, and then there is a Dangdang "BondStreet".

But people know more about Shop No. 1 on the Internet supermarket. They want to enter the fashion field and do their own clothing brand. Whether this road is good or not is still to be observed.

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< p > when it comes to private brand, the first thing that comes to mind is WAL-MART.

"Private brand, daily parity, global sourcing" and other keywords together form WAL-MART's popular global retail mode.

The Amazon in the United States as early as 2009 and before it has launched a number of private brand businesses, such as home brand Pinzon, outdoor brand Strathwood, bathroom and bedding brand Pike Street, power tools brand Denali, consumer electronics brand AmazonBasics, ebook terminal Kindle, etc.

In China, Dangdang launched its own brand "BondStreet", but because of the high logistics cost and the promotion cost of new brand, it has become an unbearable burden for Dangdang.

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< p > industry insiders say that it is sooner or later for channel providers to develop their own brands.

In fact, even the traditional retailers have about 10% of their revenue from their own brands.

Some analysts pointed out that the launch of its own brand also means that the development of the e-commerce platform from the core category has entered the era of daily department stores.

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< p > strong > higher gross margin is an important attraction. < /strong > /p >

< p > at present, the enthusiasm of the business owners for their own brands is no less than the strong desire of the brand manufacturers to control the shelves.

Why is it that the private brand has become the "sweet potato" of the electricity suppliers? < /p >

< p > higher gross margin is a great temptation for the electricity supplier.

According to the analysis of the insiders, "generally speaking, the gross profit of private brand < a target=" _blank "href=" //www.sjfzxm.com/ "> textile > /a" is about 60% (allowing returns), the gross profit of daily chemicals is about 60% to 65% (buyout can be as high as 80%), snack food has 50% gross profit, a target= "_blank" href= "//www.sjfzxm.com/" > shoes < _blank > sub 55% to 60% gross profit (allowing 30% return rate).

With the emergence of "price war" in China, the cost of purchase is becoming higher and higher, and the domestic e-commerce is generally facing a profit dilemma.

Channel business platform to go out of the low margin operating state, relying on its own traffic advantages, moderate launch of its own brand products, or an alternative path.

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< p > it is worth noting that retailers, especially the electricity supplier companies, are eager to "redeem profits".

"In the past, VC often used sales growth rate as an assessment requirement, but now it is determined by gross margin and capital flow status."

Insiders said.

But just like two sides of a coin, private brand goods are mainly bought by cash, gaining independent pricing power, on the one hand, they bring huge profits to retailers and raise the threshold of competition. On the other hand, they also bury "bomb" for their backlog and cash flow.

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< p > the launch of its own brand is also conducive to the formation of a stable user group, which can reflect the unique value of the brand.

The development of private brand is actually an innovation of business mode for these providers. For the ubiquitous homogenization competition of the electricity supplier industry, its own brand is also one of the ways for enterprises to take differentiated routes and brand.

At the same time, the development of its own brand will help to enhance the core competitiveness of the e-commerce platform, differentiate it from other similar businesses, and use its own brand to reflect the platform value and enhance customer loyalty.

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< p > < strong > the road of private brand is longer than /strong > /p >

< p > as early as 2007, Dangdang, which has not yet been listed, modeled on the PPG mode and launched its own brand "BondStreet".

But because of poor management, it will soon be off.

Dangdang can only take the "OEM" approach at the early stage of its own brand clothing. It is difficult to differentiate products, and because its production is relatively small, the ability to negotiate with factories is much weaker, and it is also difficult to make some customized products.

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< p > for all customers, although all customers have been working in the field of clothing for more than four years, there are more than 400 foundry factories and 140 thousand workers behind them. They have successfully restructured the production line of clothing standardization, but nowadays, customers are also facing serious problems of product backlog.

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"P" 1 store continues its "supermarket" characteristics of the development of the self clothing Road, it can be said that it is time to come, because its backing to rely on WAL-MART's huge supply chain support, but also makes it different from all customers, Dangdang, has more channels and resources protection.

The future of the shop No. 1 will be bright.

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< p > but reality is not as good as imagined.

It is understood that the next line of clothing brand cultivation cycle will take about 5-8 years, although the line is slightly shorter, it will take more than 3 years.

Shop 1 has such a long time to wait for its own brand to develop? This is a big test.

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< p > at the same time, in recent two years, the clothing industry is faced with problems such as high inventory and product quality. It is hard to say that the newly added "little brother" in shop No. 1 will not meet.

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< p > in addition, capital, brand trust and positioning are all problems that the electricity supplier must face in making its own brand.

Although the gross profit margin of private brand is high, the market input of early brand building is very large. The construction of brand itself is not completed overnight. It takes a long time, and it also accepts the challenge of competitors, customers and the traditional clothing brands, which are also based on the basic market, such as UNIQLO, Mts.

Therefore, it is not only shop No. 1, but the domestic electric business should develop its own brand, and it will be a long and difficult road.

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