Focus analysis is not willing to be a porter to others, “box horse” self-supporting portal


In order to earn a bigger win in the fierce market competition, domestic retailers have started their own brand business.The box horse may be one of the fastest paces.On October 20th, Zhao Jialu, the general manager of Box Horse National Standards Purchasing, announced that the sales of Box Ma’s own brands have exceeded 10%. In the same period last year, this figure was only about 2 to 3%.Among them, the daily performance is the most eye-catching, and has accumulated nearly a thousand SKUs, spanning more than a dozen categories.Shanghai International Exhibition Center has become the first self-owned brand theme store of Box Horse. It not only has the most self-owned products, but also sets up its own branded shelves for the first time.The exhibition center of the National Exhibition Center is a large amount of box horses.From the first day of its establishment, Boxma has established its own brand R&D team.In 2017, Box Horse officially launched its first self-owned brand “Daily Fresh”, selling vegetables from the very beginning, and later adding fresh milk, fresh meat, eggs, noodles, etc., increasing the width of the category, currently, fresh dayHas crossed more than a dozen category lines.Subsequently, Boxma independently developed the “Box Ma Workshop”, which is the main cooked food. Salted soybeans, handmade dumplings and clams have become hot products.In addition to the daily brands such as Rising Sun and Box Ma Workshop, which are relatively grounded in price and packaging, Box Horse also launched its own brand of “Emperor Fresh” and “Box Horse”, among which the emperorThe main focus is on high-end seafood and meat frozen products, while the box horses cover a wide range of categories, including rice noodles, snacks, drinks, and even kitchen utensils such as cups and saucers and rags.10% of sales are still far from the expectations of the box horse.At the Box Horse Fresh Food Suppliers Conference in August 2018, Hou Yi, the president of Box Horse, made a military order, hoping that Box Ma would achieve 50% of its own brand in three years.Retailers get together to make their own brands from the overall trend of the retail industry, whether it is offline convenience stores, or online integrated e-commerce, fresh players have all started their own brand business.In the fresh industry, Box Horse is the first player to disclose its own brand results, but not the only one.Most of the fresh-keeping players have moved their minds, and the fresh-keeping field has also set off a brand-name fever.At the end of 2018, in order to help its own brand, Yonghui held a separate conference.In addition to the announcement of the main brand “Yonghui Preferred”, Yonghui also said that it will build its own brand matrix. Yonghui will cover many sub-brands such as Tianqu, Youyi, Daishi, Super U, and Ofresh.Core categories.Then players such as Daily Fresh and Fresh Legend also developed their own brands.Fresh players are not too early to enter.Longer ago, Shangchao convenience store has begun to test its own brand.In 2007, RT-Mart launched its own brand “thumbs” in the mainland market, and subsequently increased its own brands of RT-Mart RT-Mart, Youfang, and Diamond Code at different price points for different groups of people.In 2018, Wumart Group also released its own fresh brand “Daily Fresh”.Foreign-owned hypermarkets such as Wal-Mart, Carrefour, and Metro have also introduced their own brands when they entered China.Convenience stores such as the whole family and 711 are also directly involved in the production process. They have created their own brands of fresh foods, using the self-built central kitchen and factory to make three meals a day.In the past two years, the integrated e-commerce platform has also rushed to lay out its own brand and focus on household items.For a time, brands such as Jingtai, Suning, Xiaomi, Netease, and Taobao have become a new lifestyle trend.Why are retailers getting together here?An important reason is that the self-owned brand not only helps the retailer to do quality control, has independent pricing power, but also better control costs.In the traditional brand model, suppliers get very big dividends.To build a branded product, it is often necessary to reach consumers through agents, regional distributors, retailers, etc., which consumes a large amount of circulation costs, and most of the profits are cut off.Nowadays, retailers with large traffic and strong sales capabilities can use their channel advantages to develop their own brands and break the monopoly of suppliers. Both Box and Wal-Mart are doing this.In addition, whether it is in the fresh-keeping field, integrated e-commerce or business-super industry, the competition is fierce. Major retailers and e-commerce platforms need differentiated products to take the lead in occupying consumers’ minds.Doing your own brand is a good solution.Since the private label products can only be sold in the store of the brand, and the products cannot be purchased in other places, the differentiated positioning is formed, which is different from the ordinary retail stores and platforms.Most retailers also develop multiple private brands for different groups of people and different commodity issues, such as Box Horse and RT-Mart.In general, low-cost private brands belong to member benefits or a consumer discount, the main purpose is to increase the consumer’s stickiness, such as RT-Mart’s thumb brand.The price-owned brand mainly plays a role in solving the structural problems of goods and complementing the functions of goods.Although the price of the box horse is not low, the profit is meager, mainly playing the role of sales.The high-priced private label is to solve the core competitiveness of the product, and to achieve differentiation while improving the brand’s premium ability.Box Horse has provided its own brand of Emperor Xian for high-spending people.In the United States, Byerly’s supermarket has also developed a high-priced soup brand called “Wild Rice Soup”. Consumers have come to the market and the soup has become a different weapon.Private brands are not so good to do their own retail brands to build their own brands, to contribute to this market.However, the status quo is that the situation of China’s retail industry own brand is still very embarrassing.Nielsen’s latest Global Private Label Report shows that the current share of private label sales in the North American retail industry is 18%, in Europe it is 30 to 40%, and in China it is only about 1%.On the positive side, this is a blue ocean market, and there is much to be done; but on the contrary, the slow development of the domestic private label market is due to its dilemma.Why do domestic private brands fall into such a dilemma?Hou Yi once talked about the root cause: “China’s own brand has talked about countless years. Because our system is not perfect, China’s own brand is almost negligible compared with the world until today.” This system is not perfect.Long-term supplier-led zero-supply relationships have given suppliers absolute say, and businesses and consumers can only be forced to cooperate.For example, before doing its own brand, RT-Mart and other supermarkets not only need to introduce all the products of the brand supplier, but also bear the inventory pressure when purchasing goods from a certain brand supplier.This has squeezed the space for retailers to own their own brands.With the traffic and brand advantages, Box Horse is trying to re-establish the rules.Different from the mode of direct docking factory, the way to make its own brand is to buy a hand-made system. In this mode, the private label is not only developed by the box horse team, but by the supplier.Buy out the supply of a single item.But among them, planning the product structure and selecting the right suppliers and manufacturers are all critical, and each step is not easy.Taking product structure planning as an example, in general, consumers will decide the purchase behavior according to the number of shelves in which the store presents the product. If the number of shelves of the own brand is higher than the supplier of the brand, the consumer will be more inclined to own brand.At this time, the interests of brand suppliers will be impaired. Under this circumstance, the two sides will often launch a price war, which is undoubtedly an increase in the business burden of retail stores.If the proportion is too low, it will not achieve the purpose of developing its own brand, and it is impossible to better control costs and differentiate strategies.Box Ma proposed to achieve 50% of its own brand sales in three years, but according to Wal-Mart (less than 30%), Costco (about 25%), and other players who have cultivated their own brands for many years,The 50% target is difficult to achieve in the short term.Foreigners, whether they are Amazon or other e-commerce companies or Wal-Mart, Costco and other hypermarkets, are all based on global supply chains to develop their own brands, and goods are often more international and standardized.Most of the domestic private label industry is the product of the regional supply chain. The lack of uniform standards is often the result of the company’s own standards, and most of them are lower than the national standard.In addition to industry standards, retailers also need to adjust their internal organizational structure, establish internal standards, establish independent private label departments and independent private label assessment systems, but currently, apart from individual retailers such as box horses, mostThe player did not make any adjustments.The original intention of the private label is to help retailers achieve differentiated strategies and make changes in brand and price.However, the current situation is that the self-owned brands launched by a large number of retailers have serious homogenization problems, and they simply attract consumers by low prices.Many retailers are still cautious about doing their own brands.Suning once said to 36 , that his own brand Suning is still in the water test stage and will not expand the scope at present.This kind of caution is that retailers develop their own brands. Although the gross profit of goods is high, if you want to control the upstream, you not only need to invest large sums of money to buy the funds of the foundry products, but also need to take inventory pressure and the risks are high.Although it appears in the emerging lifestyle brands and channels, Netease has adopted this model strictly, and it is currently facing billions of high inventory pressures.Retailers are trying to break the traditional zero-supply relationship by developing their own brands, and add more chips to their fierce market competition..