The Influence Of Private Brand On Retailers' Internal Business Relationships

With China's economic development into a new normal and steady state,the downturn of retail industry is inevitable.In the case of the gradual decline of the network benefits,retail enterprises begin to seek strategic transformation to try the private brands(PBs),and have gained progress.Then the contradictions between internal business relationships began to highlight.In order to solve this practical problem and make up for the theoretical blank left by previous researches,which only focused on the relationships at the enterprises' level and at the consumers' level and ignored the relationships at the internal business' level.This article,based on internal business relationships of retailers,independently constructs the two-step optimization model concentrating on the self-brand impact on the internal business relationships of retailers.And separately in the low-quality and high-quality stages,through static comparison it analyzes the profit differences of the manufacturer's brand business and retailer's total business before and after the introduction of PBs,and further judge the internal business relationships based on the profits differences of the manufacturer's brand business,even determine whether to develop the PBs and how to support or develop the PBs.The results show: 1.the introduction of PBs will inevitably bring the internal business relationships into competition;2.the quality relationships between PBs and manufacturer brand and consumer willingness to pay will adjust the threshold of the quality,as well as affect the profitability of retailers with different performance in the two stages of low-quality and high-quality;3.though in the high-quality stage huge profits will be brought,we cannot neglect the stringent requirements of high willingness to pay,or else at great risk;4.The high-level state of PBs development in the high-quality stage can be considered advanced customization.Combined with the above results,some support strategies and development strategies are put forward starting from the perspectives of the control of product quality and he improvement of the willingness to pay.These findings and policies can provide retail enterprises with the basis for the development of their PBs,guide enterprises to resolve the actual conflicts between the internal business relationships,as well as direct the PBs to further develop in the high-quality stage.