PB commodity strategy

目录

The meaning of PB commodity strategy

PB (Private Brand) commodity strategy, that is, the commodity development strategy of commercial retail enterprises. It means that the commercial retail enterprise collects, sorts, and analyzes the information about the characteristics of consumer demand for certain types of products , proposes the development and design requirements for new products , and further selects the appropriate production enterprise for development and production or sets up its own factory for production and manufacturing. A strategy to sell under its own brand within the company . PB products are relative to NB (National Brand) products that are sold to the national market using the trademarks of manufacturing companies. They are produced as commercial retail enterprises in western countries seek business expansion and commercial success in the chain operation process.

Competitive Advantage of PB Commodity Strategy

Generally speaking, companies can obtain four major competitive advantages when implementing PB commodity strategy.

Conditions for the implementation of PB commodity strategy

It should be noted that not every company will succeed in developing its own brand. An enterprise developing and operating its own brand should have the following requirements:

1. The enterprise itself must have high goodwill

The expansion of the store’s popularity and reputation has made good advertising for its own brands. Not only can the store save high advertising costs, but the publicity of goodwill itself has credibility that no advertising can match.

2. Enterprises must have certain scale and network advantages

The large sales volume and high quota of enterprises can reduce the operating cost and operating expenses of unit commodities and obtain the advantage of economies of scale . Because the company orders directly from the production company, reducing the intermediate links, the price of the product is lower than similar products in the market, and it can quickly occupy the market. The company can not only get all the operating profits , but also make some production profits.

3. Stores must have sufficient control over product quality

Compared with operating NB products, ensuring low prices or high quality of PB products at the same quality level is the basic condition for implementing a PB product strategy. Otherwise, PB products will be difficult for consumers to accept. This requires stores to have sufficient control over the quality of PB goods. On the one hand, enterprises must have their own technical staff to help production enterprises meet the standards required for development and design, and at the same time implement comprehensive quality management within the enterprise and strictly control product quality . On the other hand, companies must carefully choose the varieties of PB products, and they should choose products that consumers can directly or indirectly judge the quality of products based on their own capabilities and the visibility and technical strength of production enterprises, and implement the PB commodity strategy.

PB commodity strategy is a strategic choice for enterprises to seek commercial success by developing PB commodities . According to different ways in which enterprises develop PB products, PB products can be divided into four different implementation modes.

Joint development method

In this way, the enterprise puts forward new product performance and scale requirements to the production enterprise, and jointly develops and designs with the production enterprise. The production enterprise is responsible for manufacturing, and the enterprise purchases according to the ordered quantity. In the process of joint development of PB commodity, companies with field sales statistics (POS system data) as a basis for market forecasts , and in order to own a large number of stores shop and logistics network , which has the ability to achieve compliance with the minimum economic scale Order Quantity background To cooperate with production enterprises. This cooperation between the retail industry and the manufacturing industry can combine the respective information, expertise, and technology of each other, and can timely meet consumer demand for existing commodity production that cannot be met. This joint development method, which is beneficial to both enterprises and manufacturing enterprises, has become the main way to implement the PB commodity strategy for widespread adoption by enterprises.

Independent development method

After the enterprise reaches a certain scale, due to the consideration of diversified operations, it invests in setting up factories or enters the production field through acquisitions, mergers , and integration of scientific research, development, design, and manufacturing, and strives to create famous brands with its own characteristics. For example, the Yaohan Group in Japan has 100 production companies, and the Kroger Company in the United States has 37 own-brand production plants. Generally speaking, due to the limitation of capital scale, technical level and other conditions, the types of PB products developed by enterprises using independent development methods are