Reportlinker Adds Private Label Strategies in Global Electricals and DIY Retailing

Dec 09, 2010, 14:06 ET from Reportlinker

NEW YORK, Dec. 9, 2010 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Private Label Strategies in Global Electricals and DIY Retailing

http://www.reportlinker.com/p0337907/Private-Label-Strategies-in-Global-Electricals-and-DIY-Retailing.html

Introduction

As retailers of both electrical and home improvement products suffer from consumers cutting spend on big ticket items and a declining housing market, increasing the proportion of private label lines has taken greater precedence. Retailers are increasingly investing in developing value own brand goods and in improving their private label proposition to lure in and retain price conscious shoppers.

Features and benefits

Maximise your profit margins by identifying the most suitable categories and pricing strategies for your private label lines.

Achieve the best results from your own brand ranges using our best practice recommendations surrounding issues such as product lines and branding.

Benchmark the performance of your private label lines against your competition by identifying the most successful private label innovations.

Highlights

The share of own brand sales at German DIY retailer Praktiker currently stands at 27% and the company envisions this proportion to rise to 40% in the medium term. The retailer is focusing especially strongly on developing its mid priced Praktiker range. The share of private label at its premium fascia Max Bahr is also anticipated to rise to 50%.

The world's top home improvement retailers The Home Depot and Lowe's share some common suppliers, including United Industries, which produces lawn care goods for both retailers under the respective brands of Vigoro and Sta-Green. Other suppliers, such as Behr, have chosen to sell its products exclusively at The Home Depot.

Entry level private label products are increasingly making gains in both sectors with electricals retailer DSGi recently launching its Essentials range, Kingfisher's B&Q re-emphasising its Value range and Homebase launching its own Value range. This development has served to heighten the retailers' value credentials.

Your key questions answered

What are the key issues that I need to consider when developing a new private label line?

What strategies are my competitors adopting for their own brand ranges?

What advantages do retailers have in developing new product lines over manufacturers?

What types of innovative products can I develop in response to changing consumer trends?

How do I brand my private label ranges and how much prominence do I give them instore?

TABLE OF CONTENTS

Overview 1

About the series 1

Summary 1

Strategic Context 8

There are a variety of strategic motivations to introduce private labels 8

Key strategic considerations exist across all elements of the retail mix 11

Strategy in Focus – Electricals Specialists 16

The Metro Group is relaunching a private label strategy after historic challenges in the area 16

Best Buy sees private label as a means of responding quickly to new consumer demands 20

Yamada Denki had a very basic private label offer 28

Dixons Retail is refining its private label range architecture 31

Gome Home Appliance Group plans to develop a private label range in the future 39

Kesa Electricals has one private label brand that is present across its European network 42

Strategy in Focus – DIY Specialists 49

The Home Depot focuses on exclusive product partnerships as well as private label 49

Lowe's has several long-standing and established private label lines 54

Kingfisher has recently reemphasized its B&Q Value range 60

OBI (Tengelmann) prices its private label products in the low to mid ranges 64

Groupe Adeo's private label lines focus on big ticket items 71

Kesko is extending the international presence of its private label ranges 73

Home Retail Group has invested in eye-catching packaging for its own brand ranges 75

Praktiker aims to expand its own brand ranges to account for nearly half of total sales 84

Travis Perkins' Wickes stores sell almost exclusively own brand goods 89

Strategic Action Points 95

Consider alternative or complementary approaches to private label development 95

Capitalize on your customers' proximity and flexibility to meet emerging consumer demands 95

Complement private label products with superior added value services 97

Align brand development and communications with categories and your reputation 97

Ensure own brand ranges have an evident pricing and branding structure 98

Use a variety of promotional methods to differentiate your private label products 99

Maximize private label product distribution in terms of geographies and channels 99

Appendix 101

Definitions 101

Methodology 101

Further reading 101

Ask the analyst 101

Verdict's global retail proposition 101

Verdict consulting 102

Disclaimer 102

TABLE OF FIGURES

Figure 1: Kingfisher's profit results in 2009 and 2010 for B&Q in the UK and Ireland 9

Figure 2: Examples of two possible price structures for private label ranges 13

Figure 3: Media Saturn store banners, Media Markt and Saturn 16

Figure 4: Logo and product example of Media Saturn's own brand, Sungoo 18

Figure 5: Privileg branded items and logo, now owned by Whirlpool 20

Figure 6: A Best Buy store in the US 21

Figure 7: Best Buy's store brands present across the world 22

Figure 8: Best Buy private label brands and product examples 24

Figure 9: Next Class branded laptops 25

Figure 10: Banner marketing the Nook e-book reader as a 'Deal of the Week' on Best Buy's online store 26

Figure 11: Illustration of Yamada Denki's flagship Labi 1 Namba store in Namba 28

Figure 12: Frontier branded laptop at Yamada Denki 29

Figure 13: Promotional poster for Frontier branded PC 30

Figure 14: Area in a Yamada Denki store dedicated to displaying Frontier products 31

Figure 15: Dixons Retail's European fascias, by specialism 32

Figure 16: The Firefly desktop PC and the Centurion gaming PC 33

Figure 17: Advent branded laptop and accessories available at Currys and PC World 33

Figure 18: Three examples of Matsui branded products 35

Figure 19: Examples of Logik branded appliances 36

Figure 20: A PC Line branded mouse sold in PC World stores 37

Figure 21: Examples of Currys Essentials appliances 37

Figure 22: Gome logo and store 39

Figure 23: Gome's top five supplier brands 40

Figure 24: Gome's store layout, segmenting categories by brand 41

Figure 25: Kesa's European brand network 43

Figure 26: Examples of Kesa's private label Proline branded products 44

Figure 27: Selection of Prestige branded products 44

Figure 28: Kenmark television and TV stand 45

Figure 29: Ferguson branded television and DVD player 45

Figure 30: Comparison between the lowest-priced Ferguson and Kenmark branded LCD TVs at Comet 47

Figure 31: The Home Depot logo, and store exterior and interior 49

Figure 32: Martha Stewart Living branded paint sold exclusively at The Home Depot 51

Figure 33: Scotts branded lawnmower, sold exclusively at The Home Depot 51

Figure 34: Comparison between United Industries' Vigoro and Sta-Green branded lawn fertilisers 52

Figure 35: Online promotional banner for the Behr brand of paints 54

Figure 36: Kobalt brand and product examples 55

Figure 37: Selection of Lowe's own brand logos and product examples 56

Figure 38: Sta-Green branded lawn care products 56

Figure 39: Online promotional banner for Harbor Breeze ceiling fans 58

Figure 40: Promotional banner for Kobalt tools on Lowe's website 59

Figure 41: Kingfisher's store fascias across Europe 60

Figure 42: B&Q's Can Do range of products for mobility-impaired customers 62

Figure 43: Kingfisher's One Planet Home and La Maison Eco product range logos 63

Figure 44: Example of the B&Q Value brand 63

Figure 45: OBI's five branded labels, each corresponding to different category groups 66

Figure 46: Examples of OBI's Plantania, Variolux and Classic branded products 67

Figure 47: CMI branded electronic hedge trimmer 67

Figure 48: CMI branded air conditioning unit 68

Figure 49: OBI branded entry level products 69

Figure 50: Packaging for CMI branded product at OBI 70

Figure 51: Groupe Adeo's DIY retail brands 71

Figure 52: Leroy Merlin's Ingenious own branded kitchens 72

Figure 53: Cello branded wooden flooring 74

Figure 54: Cello branded outdoor paint and storage units, launched in stores in 2009 74

Figure 55: FXA branded screwdriver kit, set of brushes and emulsion paint 74

Figure 56: The Home Retail Group's two store fascias. Argos and Homebase 76

Figure 57: Selection of Argos Value entry level private label products at Argos 77

Figure 58: Homebase own brand lawn care products 78

Figure 59: Homebase own branded barbecue products 79

Figure 60: Homebase's EcoHome own brand of loft insulation 79

Figure 61: Selection of seeds from Homebase's Grow Your Own private label range 80

Figure 62: Homebase own branded The White Room and Flawless paint ranges 81

Figure 63: Homebase Value promotional banner on Homebase's transactional website 82

Figure 64: Examples of Argos WOW deals, incorporating both branded and private label items 83

Figure 65: Praktiker store brands, Praktiker and Max Bahr 84

Figure 66: Praktiker's product-specific private label brands Faust and Homefit Living 85

Figure 67: Max Bahr private label bathroom under the Traumbader brand 86

Figure 68: Promotional poster for Faust white interior paint in Germany 87

Figure 69: Max Bahr private label products, 2009 88

Figure 70: Travis Perkins fascias, by target customer 89

Figure 71: A standard Wickes store in the UK 90

Figure 72: Examples of Wickes branded products across a range of categories 91

Figure 73: Marlow branded kitchen sold at Wickes and supplied by Gower 93

To order this report:

Electrical Equipment Industry: Private Label Strategies in Global Electricals and DIY Retailing

Electrical Equipment Business News

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