The rise of ‘no-name brands’ as retailers look for new growth avenues
Retailers betting big on in-house products as consumer spending shrinks in tough economic conditions
Many retailers have always had products, ranging from baked beans to shoes, which are specifically made for them. They have generally been punted as affordable downmarket products that don’t really compete with name brands. This is changing, however, as retailers increasingly turn to in-house brands to drive growth in a difficult economy where consumer spending has remained stubbornly muted. One example of this is struggling clothing retailer Edcon. The company, which was recently rescued by creditors taking a shareholding in it, sees the promotion of in-house brands such as Kelso and Stone Harbour as key to its turnaround. Edcon CEO Grant Pattison says his group made the mistake of responding to the arrival of global retailers such as H&M, Zara and Cotton On by trying to sell more international brands. This did not work because the group basically ended up selling pricey goods for small commissions. Edcon, however, did not have this problem with its in-house brands. In getting clot...
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