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  #1  
Old 02-16-2010, 10:34 AM
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Wal Mart replacing name brands with store brands?

there seems to be a trend at Wal mart to replace national name brands with
store brands. also, it seems certain name brand items are "temporarily out
of stock". what gives?

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Old 02-16-2010, 10:37 AM
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I am not aware of a move away from national brands.

They do seem to be bringing out more of their own " Great Value" brand items. I think the GV is being offered in addition to, not as a replacement of, national brands.
But I could be wrong.
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Old 02-16-2010, 11:00 AM
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Why should WalMart indirectly pay for marketing costs when they can use their purchasing power to market their own brand of products less expensively? I just hope that Chinese Reynolds Wrap doesn't contain too much lead...
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Old 02-16-2010, 11:32 AM
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its a logical step that most large grocery chains have already done. Kroger's even manufactures a lot of their brand stamp products like ice cream and things expensive to ship, and cereal has always had local generics due to the high markup. I think WM will just re-lable, which leads to worries over Chinese content. I would never buy any food product with WM brand
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Old 02-16-2010, 12:21 PM
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Not sure how others are doing it but Cost Co has had "Kirkland Signature' for quite some time. My understanding is that the KS brand is just a renamed 'name brand' item. Given the purchasing power, KS can sell it at a profit for both Cost Co and the name brand but still give the buyer a deal. I thought I read that KS vodka is actually Grey Goose. I have not found anything to verify that though.
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Old 02-16-2010, 12:54 PM
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old saying: "There is the Price, and then there is the COST".
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Old 02-16-2010, 01:37 PM
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The Great Value packaging is private-labeling done likely by huge, name brand companies, at reduced pricing to WM. When you are a vendor to Walmart, you do what you are instructed to do by Walmart to get their business. Products are made to WM's liking, AND what they're willing to pay, or you don't get their business.

For a lot of years I reaped the rewards of Home Depot and Lowe's purchasing products I repped in numerous states. It was easy money while it lasted, with minimal associated technical sales calls. The home run is when WM and corporations like them buys products from you - the numbers are astronomical. The only potential downsides are; smaller profit margins, annual or quarterly cash or credit rebate demands, and gearing up your supplying capabilities.

They pretty much own you, but reaping the rewards of doing business with them are worth it to many corporations. I opened a box of GV instant mashed potato the other day. The taste was equal to any of the name-brands out there.
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Old 02-16-2010, 01:45 PM
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Quote:
Originally Posted by davidmash View Post
Not sure how others are doing it but Cost Co has had "Kirkland Signature' for quite some time. My understanding is that the KS brand is just a renamed 'name brand' item. Given the purchasing power, KS can sell it at a profit for both Cost Co and the name brand but still give the buyer a deal. I thought I read that KS vodka is actually Grey Goose. I have not found anything to verify that though.
It's probably on the bottle. Their coffee says packaged by Starbucks.
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Old 02-16-2010, 02:07 PM
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Some do but most do not have any indication of who makes the product. I suspect that is largely to protect their market share. If I knew a KS brand was name brand 'X', why buy the name brand.
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Old 02-16-2010, 02:15 PM
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store brands are not name brands. name brands work long and hard for brand name recognition. they are normally priced up higher than store brands and that is for a reason. people can buy the cheaper stuff, but sometimes you do get what you pay for. since there usually isn't anyone in the store to explain the difference, many opt for "cheap" versus "quality".

its for the similar reasons this web site changed its name to peach parts. Mercedes Benz is attempting to maintain the integrity of its name. if they allowed others to dilute it, pretty soon we would see 1965 ford pick up trucks re-labled as a Mercedes Benz. there is a reason a Mercedes is priced at about double other cars. want cheap? plenty of cheap out there....but, want a Mercedes? then you are going to pay and pay and pay (aren't we all??)
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Old 02-16-2010, 02:27 PM
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Lightbulb

That is incorrect. Private-labeling and private-packaging is a fact of life. Identical product as the name brand for way less money.

37 years ago, the apparel products I repped produced private-label apparel for the largest department store chains in the country. Same material quality, same labor force produced them - big discount extended to the big boy retailers.

There is nothing new about private-labeling/packaging.
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Old 02-16-2010, 02:33 PM
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Originally Posted by davidmash View Post
Some do but most do not have any indication of who makes the product. I suspect that is largely to protect their market share. If I knew a KS brand was name brand 'X', why buy the name brand.
Correct. Most products of various type give no indication of their 'name brand' origin.
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Old 02-16-2010, 02:39 PM
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Originally Posted by HuskyMan View Post
there seems to be a trend at Wal mart to replace national name brands with
store brands. also, it seems certain name brand items are "temporarily out
of stock". what gives?
During tax time, they could be trying to reduce inventory. I know Gander Mountain was doing that for tax purposes. After their fiscal year ended, stock flowed in again. Every year at that time, supplies would be limited.

Still, like US made products, it is up to the consumer to tell them what to sell. We told them we wanted cheap, they gave us cheap so we can't have it both ways.
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Old 02-16-2010, 02:44 PM
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Originally Posted by Skid Row Joe View Post
Correct. Most products of various type give no indication of their 'name brand' origin.
What makes anyone think that the name brand will appreciate the stores listing who makes the product? I would think that as a seller, I would make damn sure that if you private labeled my product you don't mention it is mine or it would be in direct competition with me
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Old 02-16-2010, 03:04 PM
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What makes anyone think that the name brand will appreciate the stores listing who makes the product? I would think that as a seller, I would make damn sure that if you private labeled my product you don't mention it is mine or it would be in direct competition with me
Tying the no-name product to the name brand source may or may not aid in the marketing and sales of any no-name, private label product.

More often than not, mentioning it generates sales for both.

One formula doesn't fit all marketing situations, nor satisfy all merchandise buyers/managers. Flexibility on the producer's end is paramount to procure and most importantly keep their business.

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