Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Chapter 13: The Retailing and Development of Private Labels and Brands

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved NPD Fashionworld Study Results 52% National brand 35% Private label 7% Designer material 6% Other

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved National Brands Labels (brands) that are immediately familiar to the consumer; they are promoted through various media; they have a loyal following among shoppers and are generally available in a variety of retailers; they do not have any exclusivity.

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Advantages of National Brands The brand is promoted by the manufacturer In-store visual presentation bring labels to customer’s attention Quality is assured Continuity of production Provides prestige

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Disadvantages of National Labels Price cutting by competitors Opportunistic buying by off-price retailers No fair-trade pricing Not attractive to customers wanting exclusivity

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Private Label Advantages Price cutting is eliminated Merchandise exclusivity Greater profit potential Purchasing requirements eliminated Potential to create brand loyalty Vendor demands eliminated

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Merchandise Approaches The Proportional Philosophy The ‘Store is Brand” Philosophy Licensed Private Branding Partnering Brands

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Proportional Philosophy Defined: the mix of name brands and private brands and labels that results in a model stock with appeal to widest range of customers. Specific mix is dependent upon customer acceptance of each type of label.

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Licensed Private Branding Definition: form of private branding and labeling that involves licensing with well- known personalities.

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Partnering Brands Similar to leased department concept where an outside merchant occupies a portion of the store and uses it to sell their own product, but does not identify themselves as the merchants.

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Private Label and Brand Acquisition Choices Manufacture in wholly owned facilities Purchase from outside contractors Buy from national manufacturers who produce special lines for retailers Participate in private label programs Form noncompeting retailer group

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Promoting Awareness Advertising campaigns Special events Creation of special departments Visual presentation Customer giveaways Employee training

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Developing a Label Establish a person’s name on the product Incorporate the company’s name on the product Imply items designed in a fashion leader country

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Trends in Private Labels Increase in the proportion of private labels in the merchandise mix Licensing agreements on the rise Partnering is a factor in private retailer relationships Expansion of established ‘store is brand’ concept RBO expansion in private label offerings