Retail Observer

RETAILOBSERVER.COM AUGUST 2019 50 F or many independent retailers, competing with the big-box chains can be a challenge – especially in the television vertical. Although independent retailers offer exceptional customer service and cover most local markets across the U.S., they often find themselves struggling on price when compared to national sellers in the budget-friendly tier-three television category. What can retailers do to differentiate themselves from the national chains, particularly when price is a driving factor? Enter the private-label television brand. Private-label television brands fill a much-needed gap in an independent retailer's overall merchandise mix. Similar to the strategies of national retailers such as Kroger, Target and Amazon who private-label everything from food and beauty- care items to cleaners and clothing, this path allows an independent retailer to boost its profit margins by taking advantage of more advantageous pricing and simplified supply chain logistics. But as the number of manufacturers entering the private-label market grows, it's critical to qualify any partner thoroughly before signing on to a private-label program. Some factors to consider: • Production Experience – How many private-label brands has the manufacturer previously produced? How have they performed in the marketplace? • Quality Assurance – What manufacturing and testing procedures are in place to ensure a high-quality product with a low defect rate? • Product Availability – What product sizes are available? For televisions, a private-label brand should offer, at a minimum, a 32-inch, 40-inch and 50-inch model, ideally with larger sizes also available. • Exclusivity – Is the brand sheltered from national retailers? Is it exclusive to certain buying groups or regions? • Margin – Is the margin competitive with other nationally known brands? • Distribution – How will the product be distributed? Does it require a truckload purchase, or can smaller quantities be fulfilled? • Warranty – Does the manufacturer offer a competitive parts and labor warranty? • Customer Support – Is there a toll-free customer support line for retailers and customers? Are the customer care associates multi-lingual? Are there other support options, such as email or Internet chat? • Corporate Leadership – How much experience does the manufacturer's leadership have in the business, on both the retail and the manufacturing sides? Private-label television brands offer a striking option for indepen- dent retailers who are looking to compete with the national mass merchants and big-box electronics stores. By choosing wisely, and by thoroughly vetting potential partners, these store owners can offer their customers a high- quality, high-margin product at a lower price. And that's a win-win for everyone. Al Levene Consumer Electronic Trends Al Levene, Vice President and General Manager, Broad Electronics America Inc. RO PRIVATE-LABEL BRANDS HELP INDEPENDENT RETAILERS COMPETE

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