Made Trader is a global company with over 20 years of experience in marketing and development of product lines for the North and Latin American markets through OEM developments. Made Trader has presence in China, Brazil, Argentina and Colombia.
Our purpose is focused in attending our customer's needs with an innovative and efficient approach.
We offer a comprehensive array of services ranging from developing a new product lines to expanding already established ones, including, but not limited to, design, development, sourcing and manufacturing.
We provide the resources and expertise in order to allow its clients to focus on their business and customers and freeing them of the costs and issues associated with owning and managing production facilities in China.
Our holistic approach allows our clients to transform, strengthen and diversify their business.
The greatest benefit of own brands is for final consumers, but everyone in the chain will benefit from this system, such as suppliers, distributors and consumers. For consumers, the promise of own brands is that they will get similar products to the traditional ones, but for less price. Distributors improve their profitability by cost reduction, that is, increased margins. They can also create difference in positioning since they strengthen their image, promote clients loyalty and improve their negotiation position with suppliers.
Do suppliers lose? They will probably lose in the bargaining power factor, but if they have installed capacity under-used, it´s better to put more sale units without investing in marketing or other actions (shelf space, location in the supermarket, marketers).
The following are the benefits of own brands for supermarket chain:
a. Supermarket chains obtain margins between 15 and 20% with domestic brands. With own brands these margins fluctuate in a range between 25% and 40%.
b. The supermarkets can reach market segments not served by domestic brands.
c. Growth of the category as a result of increase in the volume of sold units of domestic brands and own brands.
d. The development of own brands allows supermarkets to strengthen their image in front of the consumer.
Own brands as a strategy for brand extension
Manufacturer’s point of view
It is expected that the development of own brands generates the following benefits for manufacturers:
a. Strengthening of the relationship between commercial partners and supermarkets chain.
b. Increase in the use of installed capacity.
c. Increase in sales volume of the company as a result of additional units of own brand.
d. Resources initially intended to gain more space on the shelves of the supermarket are not necessary, since the fact of being a business partner of own brand, gives advantages in terms of location on the shelves and participation in promotional events of the supermarket.
All brand extension strategy is based on brand recognition as a key factor to increase consumer loyalty with the retailer. The term brand recognition is directly related to the brand personality and this in turn, with the physical or emotional attributes thereof.
Considering the development of own brands as a brand extension strategy by the retailers, it should be considered how the own brand affects the stores chain recognition, in brand terms.