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Private Label vs. Other Brands  ,[object Object],[object Object],[object Object],[object Object],[object Object]
Neither choice is "right" or "wrong," in the sense that a retailer  can  survive without using his own private label. In fact, we will rarely see even the strongest advocate of private label having no nationally branded product on his store shelves from Wal Mart to Big Bazaar to Target to Westside. Let us begin with the question:  "If you had 2,000 customers buying 4000 pcs per month, which would you prefer — that they all be using your own brand, with your own proprietary graphics, or that they be using someone else's brand?“ With the question put in that fashion, we assume the answer would emphatically be  "my own."  Since we can decide the margins for our products keeping comparable Quality as other brands we can  make more money.It also creates a long terms relationship with the customer which can be managed in the way that suits the owner of Private Label. Let's look at the specific arguments, pro and con, before coming to the philosophically right decision for any given operator. That right decision will rest on the right ideas, conceptual thought, not just by merely copying others or doing things the easy way.
Advantages of National Brands ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Advantages of Private Label ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Disadvantages of National Brands ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Disadvantages of Private Label ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Choice To resolve the whole issue you might begin by asking a question, the answer to which has enormous consequences. What business are you in? Are you in the retailing business or in manufacturing?And The answer is retailing as You merely subcontract the cutting, stiching and packaging to someone else and therefore you are not Really manufacturing. The national/supplier owned branded products are your competitors, not your supplier partner.They will treat each retailer based on the sales that they can generate and will not shy away from sharing one’s data with the other which can be crucial especially in the context of understanding the customer behaviour. Their Goal is — to sell as much as they can by every possible means. But because they pursue their own self interest does not mean that they should pursue yours too. Pursuing your own interests is your job. And if you decide you are in the retailing business you must control that business, including your quality, packaging, economics, graphics, distribution, and all the other elements involved. Your business is the sum total of all the choices you have ever made for it. Therefore it is important you take the call and not someone else.
Private Label Requirements  : ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Private Label strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Also ,a National Brand Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Bottom line - Goodwill is Important In   the final analysis, the value of any business is not really found in its buildings, vehicles, machinery, inventory, receivables, or even in its people. Its real value can be stated in one word — goodwill.  Goodwill to you, your company and products that makes people want to buy from you. The building of your own goodwill is harder to do, but the rewards are sweeter too.

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Private Label Vs

  • 1.
  • 2. Neither choice is "right" or "wrong," in the sense that a retailer can survive without using his own private label. In fact, we will rarely see even the strongest advocate of private label having no nationally branded product on his store shelves from Wal Mart to Big Bazaar to Target to Westside. Let us begin with the question: "If you had 2,000 customers buying 4000 pcs per month, which would you prefer — that they all be using your own brand, with your own proprietary graphics, or that they be using someone else's brand?“ With the question put in that fashion, we assume the answer would emphatically be "my own." Since we can decide the margins for our products keeping comparable Quality as other brands we can make more money.It also creates a long terms relationship with the customer which can be managed in the way that suits the owner of Private Label. Let's look at the specific arguments, pro and con, before coming to the philosophically right decision for any given operator. That right decision will rest on the right ideas, conceptual thought, not just by merely copying others or doing things the easy way.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7. The Choice To resolve the whole issue you might begin by asking a question, the answer to which has enormous consequences. What business are you in? Are you in the retailing business or in manufacturing?And The answer is retailing as You merely subcontract the cutting, stiching and packaging to someone else and therefore you are not Really manufacturing. The national/supplier owned branded products are your competitors, not your supplier partner.They will treat each retailer based on the sales that they can generate and will not shy away from sharing one’s data with the other which can be crucial especially in the context of understanding the customer behaviour. Their Goal is — to sell as much as they can by every possible means. But because they pursue their own self interest does not mean that they should pursue yours too. Pursuing your own interests is your job. And if you decide you are in the retailing business you must control that business, including your quality, packaging, economics, graphics, distribution, and all the other elements involved. Your business is the sum total of all the choices you have ever made for it. Therefore it is important you take the call and not someone else.
  • 8.
  • 9.
  • 10.
  • 11. Bottom line - Goodwill is Important In the final analysis, the value of any business is not really found in its buildings, vehicles, machinery, inventory, receivables, or even in its people. Its real value can be stated in one word — goodwill. Goodwill to you, your company and products that makes people want to buy from you. The building of your own goodwill is harder to do, but the rewards are sweeter too.