PRIVATE LABELS AS A STRATEGY OF RETAIL BRANDING OF TRADE NETWORKS
Abstract
In the context of uncertainty and volatility of the marketing environment, large retailers increasingly pay attention to branding issues. Effective development of own brands requires the development of a retail branding strategy, which, as a result of successful implementation, allows to increase the capitalization of both own brands and the brand of the retailer. The purpose of this article is to analyze the practice of introducing private labels of trade networks in Ukraine as a branding strategy and to identify problems in the relationships between suppliers and retailers in terms of implementation of the retail branding strategies. The article identifies that private labels have become widespread among retailers in Ukraine. The use of private labels as sub-brands of retail chains has several advantages for both retailers and consumers. It is established that for successful development of brands, the retailer should develop an effective retail branding strategy. There are two main retailing strategies in international practice: corporate branding and commodity branding. The author analyzes the current structure of the private labels market in Ukraine and identifies the leaders in terms of the number of stock keeping units (SKU) and the share of private labels in the total turnover of the retailer. Despite a number of benefits of using a retail branding strategy, collaboration between retailers and local suppliers is usually accompanied by some difficulties, such as pressure on suppliers through deferrals of payments of the delivered product, imposition of a number of additional contractual requirements, etc. Addressing this issue requires a balanced approach to developing a strategy for effective collaboration between suppliers and retailers. Prospects for further research include a more detailed study of foreign experience and possible ways of overcoming conflicts between retailers and suppliers, developing a comprehensive approach to managing private labels, as well as determining the parameters of assessing the effectiveness of retail branding.
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