ISY, ok, PEAQ & KOENIC - Own brands are in demand!
Product labels that are cheap and are only on the shelves of your own retailer are becoming more and more popular. But what makes them so attractive for retailers? Karsten Sommer and Claus Liedy, Managing Directors of IMTRON, the direct subsidiary of the MediaMarktSaturn Retail Group, provide answers in a video interview.
Whether at Rewe, dm or MediaMarkt and Saturn - "own brands" have long since become an integral part of German retailing. Even if they may not stand out from the crowd at first glance, some have certainly bought the flips of "ja!" for the garden party, put the "Balea" shower gel in the bathroom cabinet or set off on the train with the headphones of "ISY" in the morning. Good and cheap - that's what consumers expect from these brands.
The idea behind the own brands
Branded products are enormously important for the trade. With their reputation, they attract customers into the business and form the foundation of virtually every retail company. What would MediaMarkt or Saturn be without Samsung, Miele and Co.? Nevertheless, these branded products always bring with them certain challenges for the retailer - e.g. fluctuating margins or manufacturers' specific ideas as to where and how a product should be placed.
Sooner or later, the retailer will be faced with the following question: How can I bind the customer even more strongly and above all as uniquely as possible to myself, design my communication more freely and still - or perhaps even more - generate earnings? This is exactly where private labels come into play. In-house brands that have similar products in their range to a brand manufacturer, but at the same time are much cheaper for customers. After all, private label products are usually produced exclusively for the retailer. The retailer can thus determine margins much more freely and control prices more flexibly - which not only benefits the customer, but ultimately also allows the retailer to earn considerably more.
Own brands at MediaMarktSaturn
MediaMarktSaturn has also been relying on its own brands ok, PEAQ, ISY and KOENIC for many years - with success! Together with IMTRON as a direct subsidiary of the MediaMarktSaturn Retail Group, which manages the company's own brands, all stores and thus also customers are offered a mass-produced basic assortment of its own brands with a permanently good price-performance ratio.
Naturally, this is always combined with appropriate services. But what exactly is behind IMTRON? And why are private labels so important for MediaMarktSaturn in the meantime? These questions are answered by the two managing directors of IMTRON - Karsten Sommer, CMO, and Claus Liedy, CFO.