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MERCHANDISING


WHY MERCHANTS SHOULD STOCK OWN BRAND FIXINGS


Fixings expert Samac, which has just invested in the latest generation printing and packing equipment, tells BMJ why own branding is a wise choice for merchants.


WE ARE OFTEN told by marketeers that the brand is king and, as consumers, many of us have strong and enduring attachments to brands – our beans have to be Heinz and our tea must be Typhoo, or whatever our brand of choice is. But own branding in the consumer sector has enjoyed massive growth since the start of the pandemic last year and it shows no sign of abating. In March 2020 alone supermarkets reported a massive 20% increase in sales of own label groceries as consumers tightened their belts and changed shopping habits.


According to research by Nielson, 48% of 2,000 consumers would switch to cheaper own-label alternatives and more shoppers than ever are choosing own-brand products over named brands, with own-labels accounting for 54% of UK supermarket sales. Over 60% of shoppers think that own-label brands are as good as named brands and better value: nearly double the number who thought that four years ago.


Merchants’ customers are no different. The shortages we are now seeing have forced the trade to buy when and what they could for their projects, sometimes permanently dropping brands that they had sworn by for years. Many of the national merchants continue to develop their own brand portfolio, especially in the core ranges that every builder uses: nails, screws and fixings are a perfect example of just such a line So, what are the top six reasons why merchants consider carrying own branded lines of fixings?


1


Cost: purchasing own label products gives merchants much more control over the product they stock and the cost of it. Without the cost of building a brand and the marketing investment that that entails, it is


18


possible to purchase really top quality products, in attractive packaging like tubs and pouches that your customers want to use, at a lower cost.


2 3


Margins: of course it is vital that you know and trust the quality and reliability of the products that you are putting your name to. Once you have established that, you can be confident to pass on some of the cost benefits to your customers while still making an enhanced margin.


Increased brand awareness: own branding products like nails and fixings increases brand awareness for your own brand. The builder who carries a tub of your own branded nails out of your branch will carry it onto site, encouraging passive marketing. Everywhere your packaging goes, so does your brand’s message. This is a particularly pertinent benefit for nails, screws and fixings since they will hang around on site for several days with your branding right in everyone’s line of sight.


4


Customer retention and trust: own branded products can strengthen your relationship with your customers, cementing the relationship that the merchant has worked so hard to establish and nurture. Customers can buy a national brand anywhere, but they can only buy your own brand at your stores. For your customer, own branded products represent choice and the opportunity to regularly purchase quality products at considerable savings compared to buying national brands.


Take the same customer using your own branded nails or fixings. When the tub is empty and if the product lived up to expectation,


Many of the


national merchants continue to develop their own brand portfolio, especially in core ranges that every builder uses.”


the customer will likely return to your branch to re-purchase this product. Once at your trade counter, he is much more likely to buy other products and it also increases the possibility of cross selling to other products from the same brand family.


5


Innovation: own branded products aren’t poor quality. In fact, in consumer retailing Europe wide, 78% of consumers agree that own brands are a good alternative to named brands so acceptance and understanding of own branding is clearly high. In fact own branding allows


merchants to offer something unique to dif¬ferentiate them from their competitors and allows them to respond quickly to new products, trends and legislation without having to invest vast sums themselves.


6


Less hassle: shorter lines of supply, fewer invoices, less admin and less hassle At Samac we are the UK’s leading own branding specialists for nails, screws and fixings. We have just invested in a state-of-the- art printing facility which allows us to really present own-branded products in the very best light in upgraded pouches, and tubs for on-the-shelf retail appeal. We can print and pack a wide variety of pre- packed nails, screws and fixings, in everything from small 50g pouches to 20kg tubs that make it easy for merchants to offer a lower cost, higher margin alternative to their branded fixings lines.


The bottom line is that carrying a range of own branded fixings will not only increase sales and improve your margin; it will build your own brand and help develop lasting relationships with satisfied customers. BMJ


www.buildersmerchantsjournal.net November 2021


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