2023-03-20 23:55:02
Wildberries will start selling smartphones, TVs and refrigerators under its own brand (STM), a company representative told Vedomosti. According to him, the cost of production will be “in the middle price segment.” Vedomosti’s source in the e-commerce market knows that the company will develop sales of household appliances and electronics under the Razz and Ruzz brands. As follows from the materials of Rospatent, the company filed documents for the registration of the relevant trademarks at the end of December 2022.
In the near future, the marketplace will start selling about 100 items of household appliances and electronics under private label, including refrigerators, washing machines, vacuum cleaners, blenders, mixers, TVs, etc., the representative of Wildberries listed. According to him, in a few months this list will also be replenished with wearable gadgets – tablets, laptops and smartphones. Interest in the sale of private label equipment in Wildberries is explained by the general shortage of supply on the market and the growth in demand in this segment. In particular, in 2022, sales of appliances and electronics on Wildberries grew by 97% year-on-year, with household appliances (+108%), laptops and computers (+132%), as well as smart home and security equipment growing the most. (+233%), a representative of the company cited the data.
According to GS Group, the share of household appliances and electronics, which now falls on private labels, in Russia is about 30-40%. Most of them are in the category of small household appliances – 60-70%, among the most popular brands – Redmond, Vitek and Polaris, listed the head of the analytical center of the GS Group holding Alexander Surkov. In the category of TVs, the share of private labels is at the level of 50-60%, the brands DEXP, Yandex, Salyut TV, Harper, Kion are popular, the expert continued. Private labels in the tablet segment make up about 20-30%, in large household appliances – up to 5%, smartphones are “obviously losing” in terms of the share of private labels, he added.
The volume of the Russian market of private label brands in the segment of household appliances and electronics for 11 months of 2021 grew by 42% year-on-year to 60.3 billion rubles, according to the calculations of the GfK agency.
Most of the Wildberries household appliances will be assembled at Chinese factories, and TVs in Russia and Belarus, a company representative said, but did not disclose where exactly and in what volume. Test deliveries and sales of electronics have already begun, he added, adding that a trial batch of TVs and mixers for private labels was completely sold out. According to him, at first, equipment can only be bought in Russia, but the marketplace plans to launch sales in other countries of presence, including Belarus, Kazakhstan and Armenia.
In Russia, equipment for Wildberries can be produced at the facilities of the ICL, Haier factories, in Belarus – at the factories of the Horizont holding, says Surkov. In the case of China, these are the same factories that produce equipment for Xiaomi, he suggested.
The intention to develop sales of electronics under their own brands in 2022 was also announced by the marketplaces Ozon and “Yandex.Market. Now all electronics and household appliances of Ozon private label are produced under the Hartens brand, its marketplace was bought back in the fall of 2021 for the production of TVs. Under this brand, audio equipment, built-in large household appliances, small household appliances and accessories are also sold, the representative of the site specified.
Yandex.Market sells household appliances and electronics under the Tuvio brand. The list of private label products includes TVs, kettles, chest freezers, microwave ovens, washing machines, which are leaders in sales in the category, the representative of the marketplace specified. The company refused to disclose the number of goods sold under its own brand.
The decision of Wildberries to create its own brand of equipment is connected with the general trend to launch private labels in Russia against the backdrop of the withdrawal of foreign brands, Surkov believes. The second reason, according to him, is the growing popularity of marketplaces. “The main competitive advantage of Wildberries is the popularity of its platform, which makes it possible to quickly promote their private labels and put pressure on suppliers to obtain low purchase prices,” he added.
So far, the share of private labels in the household appliances segment of marketplaces is much lower than that of M.video-Eldorado or DNS retailers, but it is growing steadily, added Mikhail Burmistrov, CEO of Infoline Analytics. “In conditions when a number of well-known brands have left the Russian market, companies can introduce a new relatively little-known brand into their assortment or launch private labels, but in the second case, they manage pricing and promotions, can differentiate and compete more effectively with other marketplaces and retailers,” – he explained.
According to Burmistrov, at the initial stage, which involves the development of the brand, the selection of partners, the formation of requirements, testing, etc., Wildberries most likely invested no more than 30 million rubles in the direction. If we are talking about OEM production, when a company selects goods from existing models at the factory, and does not develop its own design, then the cost of launching a private label fits into the cost of the initial purchase, Andrey Nikitin, commercial director of F-plus mobile, argues.
There are other costs, such as certification, logistics, customs fees, etc., but they are insignificant compared to the cost of the original batch, he added. The amount of investment in the further development of private labels depends on the size of the product line, but it can be estimated at 5–10 billion rubles, Surkov believes.
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