Retailer Branded Products Essay

1942 Words May 7th, 2011 8 Pages
1. Introduction
In the 21 century, thanks to the developments of technology and economy, world retail receives a new opportunity for developing. To understand and predict the situation and developments of world retail industry in 21 century, firstly, this report will evaluate the major situation of retail within the first decade of 21 century by evaluating the development of retailers branded products; then, the article will predict the future changes of retail industry.

2 .Development of retailer branded products
The development of retailer branded products can be evaluated from three aspects: the reasons for retailers to develop it; the achievements over last ten years; the changes of relationship between manufactures and
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As the description of Figure3, the percentage of customers who prefer the retail brands increased from 45% to 48% in U.S., within last decade.
Figure3. Percentage of customers who prefer the retail brands in USA market (Sources: Customer Research North America, 2009; Kumar, Benedict and Steenkamp, 2007)

2.3 Changes of relationship between manufacturers and retailers
Due to retailers branded products, the main relationship between manufactures and retailers has changed. Compare with the traditional relationship that the cooperation of suppliers and distributors, the new relationship is complex. The new relationships between manufacturers and retailers are win-win relationship and competition relationship (Ailawadi and Keller, 2004).
2.3.1 Win-Win relationship
Retailers branded products create win-win relationship between manufacturers and retailers. Both parties can get more benefits.

The retailers can get more benefits. Firstly the retailers get differentiation. Traditionally, the products which manufacturers provide for each retailer are same. However, under model of retailers branded products, the retailer could require manufacturers produce specific products based on retailer’s requirements. Therefore, these specific
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