few days ago I shared thoughts with tablecloth and two businessmen friends and one of them, the wine sector, told us about the problem posed by supermarkets to large companies due to new supplier purchasing policy (supply chain management) related with the success of its brands, ie non-brands.
First of all, I want to clarify that while it is true that Carrefour, Wal Mart and major retailing chains have always released products with your name, what has made Squire Mercadona is truly innovative.
The classic model used by the supermarkets is to sell a commodity (rice, sugar, pasta, ..) under its brand: instead of selling or Gallo Barilla pasta, to name two, Carrefour sells pasta, produced under requested by a third company that sells its product without its frame.
This has an advantage if you're small and you have nothing to lose: the large area required at first you do not you have ISOs or standard processes and therefore gives you sales volumes and some benefits, in 2 or 3 years you have to meet the specifications of the supplier, who begins to ask further falls in prices and sales continued (two for one) that make a lot of drop in your inmate account and just process.
By not sell your brand, if tomorrow's great buys the dough surface to a Chinese supplier, Polish or Indian, which is offered at a lower price, you're out and nobody knows you (the people know your pasta but associated with Carrefour brand / day ..).
Mercadona has broken the scheme and is now manufacturing products under the brand Squire, that is not outsourced, but the factory directly.
The industry is very concerned and many factories are closing, the largest distributors of juice, for example, have lost business today morning before the brand juices produced Mercadona and not now.
The book "Consumering" Javier Rovira announced that there are two things that we can not give: our brand and own the distribution chain, point of sales.
Think about it please.
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