Implication for the Retail Industry Essay example -- essays research p

Thomas, Ryan, â€Å"The Right Mix: Brands versus Private Labels,† Apparel, Feb’04, p. 30-33 Overview of Article   Ã‚  Ã‚  Ã‚  Ã‚  Department stores that may want to develop or expand private labels to replace lagging national brands should be aware of the downfalls as well as the benefits.   Ã‚  Ã‚  Ã‚  Ã‚  Private labels increase margins from 6-10% higher than national brands. They also allow for fashion garments to be reproduced the following season if they are still in demand. However, department stores risk opposition from national brands if such private labels create too much competition.   Ã‚  Ã‚  Ã‚  Ã‚  If private labels are to be expanded, they should be of higher quality than the norm. They should also be offered in a wide range of categories, to decrease advertising costs. Article Summary   Ã‚  Ã‚  Ã‚  Ã‚  Department stores have traditionally used private labels on the selling floor as a way to provide a low-cost alternative to consumers. However, they may be expanding and developing more private labels to replace those national brands that have been falling behind.   Ã‚  Ã‚  Ã‚  Ã‚  Private labels are helpful to department stores because they increase margins. On average, private label margins are 6-10% higher than national brands.   Ã‚  Ã‚  Ã‚  Ã‚  Another benefit of private labels is one not offered by brand manufacturers. If a fashionable garment sells out fast in any particular season, ...