National brand collaborative store

Abstract

To solve the problem that in a distribution industry, power balance between high-quality and high-price national brand products and low-quality and low-price private brand products is maintained until the day (X-Day) when the private brand continues to evolve and high-quality and low-price new products finally appear, but the national brand is subjected to catastrophic damage thereafter.SOLUTION: This is a business model in which a large number of national brand companies unites to jointly secure a sales function, and a company established by joint investment performs: land acquisition; regular borrowing; and construction, operation, and management of stores all over the country, thereby developing dedicated stores that sell only national brand products related to lives of consumers, such as foods, clothing, sundries, consumables, and durable goods.SELECTED DRAWING: Figure 1

Description

[Technical Field]

[0001] The present invention relates to a national brand cooperative store in the distribution industry, which aims to eliminate future risks resulting from dependence on other companies for sales and to stabilize business by establishing a cooperative sales network among manufacturers of national brand products. [Background technology]

[0002] Traditionally, the ideal business model for companies that provide products to general consumers is to plan and manage the entire process from manufacturing products in factories to selling them to end users, which is the most stable way of management. Automobile companies manufacture products in their own factories and sell them through their own dealerships. Newspaper companies print in their own factories and deliver from their own sales outlets. Telephone companies develop their own products and sell them from their own sales offices. There are also lactic acid bacteria drink companies that have their own manufacturing and sales departments. When it comes to providing services, in the tourism industry (hotels, hot springs, theme parks, shrines and temples, etc.), the food and beverage industry (restaurants, izakayas, etc.), the transportation industry (airlines, ships, trucks, taxis, buses, etc.), the financial industry (banks, securities, insurance, etc.), the medical industry, the legal industry, the media industry, and many other industries, the "providing business" and the "selling business" are the same business. However, only in the distribution industry has there been a long-standing tradition of treating "manufacturing" and "sales" as different industries, with the custom of dividing up the work among separate organizations. Even today, companies called "manufacturers" do not sell directly to consumers, but instead wholesale to companies called "retailers," which specialize in selling directly to consumers. Manufacturers cannot give instructions or commands to retailers regarding product items, prices, quantities, delivery times, etc., and sales plans are a matter for retailers. Similarly, retailers cannot give instructions or commands to manufacturers, and sales plans are a matter for manufacturers. The power balance between manufacturers and retailers shifts depending on consumer trends and product appeal, so which side will have the upper hand will vary from case to case. Naturally, manufacturers will become more aggressive if they have a popular, best-selling product, and retailers will become more aggressive if their competitors have differentiated products. In any case, currently (the first quarter of the 21st century), huge waves of change are sweeping over the coexistence and prosperity that has been maintained stably for centuries between manufacturers and retailers around the world, and these waves could determine the future survival of each business. [Prior art documents] [Patent documents]

[0003] Summary of the Invention [Problem to be solved by the invention]

[0004] This had the following drawbacks: The coexistence and mutual prosperity that manufacturers and retailers have enjoyed for centuries is being disrupted by two major trends that could determine the future survival of each business. First, a change in the times that poses a threat to retailers is the growing use of online shopping. Huge online shopping platforms have taken the world by storm, allowing consumers to browse all kinds of products online and purchase them at prices lower than they would in a physical store. For example, when consumers purchase home appliances, they check the functionality, specifications, exterior design, price, etc. online, then visit a home appliance retailer to check the actual product, and finally place the order online. This has forced home appliance retailers to diversify into areas that are difficult to sell online, such as home construction, renovation work, equipment, and the sale of large furniture. The second change in the times that posed a threat to manufacturers was the emergence of "private brands." Retailers began to build their own factories to manufacture products, expanding their product lineup and allowing consumers to purchase them at lower prices. The products include processed foods, clothing, household goods, consumables, and durable consumer goods.

[0005] These two changes have brought an end to the era of "separate niche" between manufacturers and retailers. The more serious change is the issue of private brands. The reason is that while it is easy to set up an online store, it is not so easy to set up a physical store. In order for a manufacturer to open a sales store, it needs funds to purchase land, build the store, and maintain the store. Building a sales network with thousands of stores across the country would require a huge capital investment, making it extremely cost-ineffective and unrealistic. Retailers are steadily increasing the number of factories little by little over long-term plans spanning decades, so in principle, if manufacturers were to compete by steadily increasing the number of stores little by little over long-term plans spanning decades, the capitalist market would be in harmony.However, if they fail to do so, manufacturers who are unable to adapt to change will be baptized by market principles in the future and forced to exit the capital market.

[0006] The retail price of products can be lower if they are manufactured in-house rather than purchased from trading companies or wholesalers, resulting in a larger gross profit. This allows private brands to win price wars while maintaining their profit structure. The problem is that even if the price is low, if the quality is poor, only a small proportion of consumers will accept the product, and they will not be able to capture a large market share.

[0007] If private brands remain of lower quality than national brands for 10, 20, 30, 50, or even 100 years into the future, national brands will continue to be supported by consumers forever and their companies will be safe. However, if at some point the quality of the products developed by private brands catches up to and even surpasses national brands, we will enter an era where national brands are high-priced and low-quality and private brands are low-priced and high-quality, and national brands will inevitably see their sales plummet and go bankrupt one after another. In reality, many companies will be merged under the umbrella of private brands.

[0008] For each product item, private brands scout expert employees from national brand companies' production lines, offering exceptional benefits to them when they retire or even while they are still working, to acquire manufacturing know-how. They then evolve their products through repeated trial and error. There are two types of product strategies. First, even if the highest quality prototype is completed, it is saved for future use and products of lower quality than national brands are always displayed in stores. Second, the selling price is set slightly higher than that of national brands. The distribution revolution will be more successful if all private brand products are suddenly made high quality and low priced without any warning. Until then, they will lull their opponents into a false sense of security, following the adage "a wise man hides his claws." This is because they do not want national brands to feel a sense of crisis and take early countermeasures. Currently, food stores are stocked with a mixture of high-priced but tasty foods and low-priced but unpalatable foods. If, at some point in the future, low-priced foods become tastier than high-priced foods, a revolution will occur in the distribution industry. As a result, national brands will disappear from the market one after another. For example, employees of food manufacturers that produce alcoholic beverages, soft drinks, grains, bread, edible oils, dairy products, spices, seasonings, ice cream, sweets, luxury items, processed foods, frozen foods, noodles, canned goods, retort foods, dried fish, fermented foods, and other products may find that at some point in the future, their company's business environment changes drastically, causing irreversible sales slump and forcing them to take measures such as downsizing and cutting staff, leading to first and second rounds of restructuring, and even those lucky enough to stay with the company may find themselves demoted to rank-and-file positions and their wages drastically reduced if the company is absorbed. This will not only ruin the lives of the employees themselves, but also their families, creating a chain of misfortune.

[0009] A healthy capitalist society develops through fair competition, so excessive monopolies and oligopolies that undermine market principles must be eliminated. The present invention has been made to eliminate the above-mentioned drawbacks. [Means for solving the problem]

[0010] 1. Companies established through joint investment by national brands (well-known products or companies that manufacture products that have been widely loved by the public in each country for many years since their founding) open multiple stores across the country so that they can sell directly to consumers without relying on stores that sell private brands (products manufactured by retailers that imitate national brand products or companies that manufacture and sell products). 2 Building thousands of stores across the country requires huge capital investments for land acquisition, store construction, and store maintenance, making it impossible for a single company to do it financially. However, if hundreds of national brands work together to share the burden, it can easily be achieved. The three stores are not only intended to secure sales channels for manufacturers, but also to generate revenue as a sales business. 4 Participating companies are primarily food manufacturers, but also produce clothing, household goods, consumables, durable consumer goods, etc., and participation is conditional on the existence of private brand products. The present invention has the above structure. [Effects of the Invention]

[0011] 1 In the future business environment, where private brands will be of higher quality and lower priced than national brands, the conflict will be between "manufacturing and selling private brands" and "manufacturing and selling national brands." National brands will not be able to gain an advantage in the market, but they will at least be able to avoid bankruptcy and survive. 2. When a national brand company and a private brand company encounter a problem in which transactions are suspended or severed in relation to the use of wholesale and sales networks or the provision of purchasing and sales networks, the national brand company can break away from its dependency on the private brand company's sales stores and provide the products it manufactures directly to consumers through its own sales network. 3 Not only are sales and profits from the manufacturing industry added up, but sales and profits from the sales industry, even though it is a sharing business, are also added up. 4. Manufacturers have greater discretion, and can decide on production and sales plans without negotiating with other companies. [Brief explanation of the drawings]

[0012] [Figure 1] FIG. 1 is an explanatory diagram of the present invention. DETAILED DESCRIPTION OF THE INVENTION

[0013] Hereinafter, an embodiment of the present invention will be described. If a retailer that stocks and sells goods builds a factory to manufacture its own products, the manufacturer that manufactures and wholesales the goods must compete by building a store to sell its own products. The current situation in which retailers have both a store and a factory, while manufacturers only have factories and no stores, disrupts the power balance between manufacturers and retailers, leading to the unilateral and inevitable decline of manufacturers. In particular, the decline of national brand products or companies that manufacture products that are widely loved by the public for many years since their founding in each country is detrimental to the entire economy. Therefore, we propose a system based on the concept of national brand companies uniting together to jointly build a huge sales channel. 1. Manufacturers of food products, clothing, daily necessities, consumables, and durable consumer goods will jointly invest in and establish a company. They will purchase commercial land across the country and lease it for a fixed term, and build a commercial facility that is convenient for consumers and is on the same scale as existing shopping centers and supermarkets. Even if a single company cannot afford the huge amount of capital, it can be easily shared among hundreds of companies. 2. We will continue to cooperate with retailers (department stores, supermarkets, convenience stores, home improvement stores, etc.) that do not manufacture private brand products, or that do not suffer any serious impact even if they do. 3 If it is determined that the impact of the private brand is so severe that it threatens the survival of the national brand company, or if it is recognized that the private brand is blatantly attempting to destroy it, the management will make the decision to dissolve the business partnership from the standpoint of corporate defense, and in order to survive, the products will be sold in newly opened stores exclusively for the national brand. 4. Withdrawing national brand products from stores that sell private brands fails to win back consumers. 5. The newly opened stores will basically stock products from all manufacturers, with a wide range of products as a key differentiator and an increased ability to attract customers. 6. If an agreement is reached to cease production of competing private products and withdraw from stores, the business partnership will resume. 7. A free economy develops based on the principles of survival of the fittest and survival of the fittest. Therefore, even if a private brand destroys a national brand, just as a supermarket destroys a shopping district, or even if a national brand destroys a private brand, in the big picture, they will still compete with a business policy that contributes to the progress of capitalism.

Claims

[Claim 1] This is a business model in which numerous national brand companies unite to jointly secure sales functions, in preparation for the stable survival of companies that manufacture national brand products, as they move away from the current situation in which they are dependent on and controlled by other companies in the supply chain, and avoid falling into a management crisis even if the quality of private brands improves in the future and consumer trends, market share, profit structure, and business environment change.The company established through joint investment will purchase land, lease land for a fixed period, and construct, operate, and manage stores throughout the country, which will be dedicated stores that sell only national brand products related to consumers' lives, such as food, clothing, miscellaneous goods, consumables, and durable consumer goods.These national brand joint stores are characterized by having functions that are relatively equivalent to or superior to stores that sell private brand products, such as location, capacity, product lineup, customer attraction, and convenience.

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