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Sunday 19 April 2009

What do u think about own brands??



Almost every retailers have launched their own brands product. As you will see on the shelf, owns brands product are putted beside national brands(general brands)sometimes they put in the better location to attract consumers to see and add own brands as consider choice. The retailers see an opportunity to increase their profit due to economic problems and others, people tend to have more aware of spending money and looking for more bargain so producing their own products and sell at lower price can give a lot of benefits to them such as more bargaining power over national brands, increase customer to their retailers because of lower price attraction and also give more choices to their customers. Normally, retailers will sell their own brands product at 10-30% cheaper than national brands. Why they can sell at that price?? because they don't need to pay for the marketing cost and they use basis product package .In addition, some of owns brands product have similar package to national brands which can make consumer confuse when they are shopping.
This create a big affect to national brands to change their strategy ,some of national brands reduce their margin in order to compete with retailers' own brands and motivate consumer to buy. As a result, some of national brands' manufacturer who cannot survive in this market change to be a manufacture to product retailers' own brands product.
This strategy generate much more benefit to retailers and also consumers but the most sufferer who face a lot of problem cannot be someone else except " national brand" Do you think is it fair to them??


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4 comments:

  1. Actually,i don't mine coz i'm consumer but look back to suppliers, it's something like retailers is tricky to them.

    ReplyDelete
  2. As a consumer, i don't mind if the customer can get the best product, by means of its price and quality, from such strategy.

    ReplyDelete
  3. I don't mind cause the products not to bad.

    ReplyDelete
  4. I do not care if the price is right.

    ReplyDelete

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