Buyer's Own Brands - is their rise inevitable?

摘要

Many Australian wine producers have avoided becoming suppliers to the Buyer's Own Brand (BOB) wine market, believing it to be the customer of last resort. In addition, some wineries see participation in BOB supply as somehow lessening the value of their own proprietary brands. But with the huge international growth in BOB wines, should more Australian producers examine the potential of this distribution channel, which, while realising lower unit financial returns, generally offers enhanced economies of scale and significantly reduced marketing expenditure to offset the reduced sales income? This article looks at the BOB market in general and will also examine in more depth 'Buyer's Own Brands', from the perspective of Tesco Supermarkets, one of Australia's largest wine customers.