Private labels in the electronics industry

February 21, 2019 | 10:48
Image: Distrelec Group
Image: Distrelec Group
This is an article by Steve Herd, Head of Customer Proposition and Product Management at Distrelec Ltd.

The electronics industry has a longstanding reputation of both innovation and adaptability. Many of its recent trends have been embraced from what already works well in other industries. It’s therefore no surprise that the initial adoption and recent resurgence of private labels should play a big role with representatives within the industry.

The foundations of private labels were laid in a small town in Switzerland in 1928, when an entrepreneur bought his first production company selling home-brand non-alcoholic wines. This endeavour came just three years after opening his first mobile shop, which later became one of Switzerland’s largest supermarket chains, Migros.

Today, the food industry still highly values private labels, some of which have become so famous amongst the Swiss population that they established merchandise for their own brands. Switzerland continues to be one step ahead of Europe when it comes to own brands, with more than 50% of the products sold coming from private labels. By having access to quality products at lower prices, customers have become increasingly loyal and dependant on the store itself rather than the brand.

Much like the food industry with Migros, the electronics industry has its fair share of private labels that are experiencing recent success. As the lessons learned from the food industry continue to be applied, it is becoming increasingly obvious that private labels are the perfect addition to the existing product range and a winning solution for consumers, manufacturers and distributors. But what exactly makes private labels so successful? We’ve compiled four reasons behind their resurgence that might just answer the question whether private labels are the right choice for your business.
 
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