Multi-brand store... Mono-brand store... How do they differ from each other? Is there any difference between them at all? And how important is this difference?
Multi is not mono
Of course, there is a difference between these concepts, and it is very, very big. A mono-brand boutique sells clothes, shoes, and accessories of only one brand. Most often, in order to impress the buyer, the store is decorated in a certain way, creating the appropriate atmosphere.
A multi-brand store sells products from a variety of brands and brands. As you might guess, this means that its design is in no way connected with the symbols of these brands; moreover, it may have its own recognizable symbols, corporate colors, etc.
The benefits of a multi-brand store
Multi-branding is also convenient for the owner point of sale, and to the buyer. For the owner, it means elasticity, the ability to flexibly regulate the assortment: there are no sales of any trademark- you can replace it with another and thereby compensate for the losses. It’s good for a buyer in a multi-brand store because he also gets the opportunity not to get hung up on the goods of one brand: if something doesn’t fit, no problem, he’ll take a closer look at clothes from another manufacturer.
All of the above does not mean that the mono-brand boutique is doomed from the very beginning. It just works with a clearly defined target audience.
A multi-brand store is not the same as a shopping center
Perhaps someone has now read everything that is written above and said: everything is clear, a multi-brand store is a shopping center in which many boutiques are located. But that’s not true! A shopping center is a shopping center in its own right. Multi-branding in this case implies that products of different brands are sold within the same store, lying side by side on shelves owned by the same seller, and not distributed across many boutiques.
Let's say you decide to open your own business. And it so happened that you chose selling clothes or accessories as your life’s business. In addition to calculating the budget, finding investors and other concerns of a young entrepreneur, you will definitely have one important question. Should you sell products of one brand or offer customers a mix of brands? Do mono-brand stores have advantages over multi-brand stores? Or vice versa? In this article we will look at some features of the two options that will help you decide.
Features of a mono-brand store compared to a multi-brand store
- The emphasis is completely given to one brand, which makes it possible to adjust the entire store design to the philosophy of a particular brand and, if necessary, quickly change it.
- Products from the same brand are usually easier for customers to combine. Clothes from different manufacturers will need to be selected more carefully.
- It is easier to organize actions, since there is no need to coordinate marketing plans separately with each representative of the brand.
- It is easier to negotiate with partners. Everything here is trivial - simply because you will only have one.
- The design of a mono-brand store, as a rule, is created in accordance with the brand book, so you can save on the services of an interior designer.
- It is possible to cooperate with the owner of the brand on a franchise basis, which is especially attractive for young business, as it allows a startup to benefit from the experience and authority of an “experienced” player in the market. However, you need to be prepared for serious demands from the franchisor both to the store premises and directly to its owner.
Features of a multi-brand store
- The variety of brands and products of different styles creates a wide range of customers.
- Simplified legal registration is possible, since with proper preparation of documents for wholesale trade the seller will not need written permission from the brand owners.
- It is possible to change the presented brands depending on their popularity among customers. Some shelves are quickly emptying, while others are rarely approached by customers? You know what to do: increase purchases of a popular brand, and you can completely refuse cooperation with an unclaimed one.
- It is possible to create your own concept with a unique assortment (for example, sell only youth clothing or handbags from different brands).
- It is possible to give the store a creative name “of your own creation.”
- It is important to ensure that products of different brands are harmoniously combined, otherwise the store may turn into a colorful bazaar. Plus, each brand needs a “prominent” place: they should not obscure each other.
- It is advisable to hire an experienced buyer who would form the store’s assortment in such a way that customers can easily combine items from different manufacturers.
Multi-brand stores, as a rule, have their own buyers - professional purchasers who form the assortment. Based on an analysis of the target audience, they purchase products in a certain price range, maintain contacts with suppliers, attend exhibitions and fashion shows, determine the volume of purchases and the size range of goods. IN large network Buyers specialize in a narrow category of items (for example, only women’s dresses); in a small category, they are responsible for a wide range of goods.
According to analysts, multi-brand stores are of greater consumer interest. This fact can be explained simply: such stores promise visitors wide range, and therefore the possibility of choosing, for example, a black dress, firstly, of different styles, and secondly, at different prices. However, do not rush to make a definite conclusion. A store offering clothing from a popular brand that has earned the love and trust of customers will be worthy competition in terms of customer flow and monthly revenue. And, by the way, the same analysts claim that more than 60% of revenue in most multi-brand stores comes from single-brand products.
We looked at the main differences between the two types of stores, which will help you get only a general idea. In general, if you are faced with a difficult choice, you should focus not only on theoretical knowledge, but also on the regional characteristics of the future store, and also take into account your financial capabilities and business development plans.
Experts from WIN & WOOL, a brand specializing in the production of knitted clothing, identified the pros and cons of mono-brand and multi-brand stores. The results are in our article.
“A monobrand is like a unibrow?” - my teenage daughter asked me. Well, yes, it is: a mono-brand online store sells goods of one brand, while a multi-brand online store sells goods and services of a variety of brands. What are the advantages and disadvantages of such a store, how to create an effective multi-brand online store and how to promote it - read our article.
Examples of multi-brand stores
Target audience. Everything is clear here: there are many brands, different brands, and accordingly the target audience will be different. Try to take into account the needs of customers different ages- sell both youth and conservative things, different social status- cheap goods, mid-range and luxury, and even of different beliefs - add to the assortment goods for subcultures, trends and directions.
Prices. Depends on the target audience. Take the same “Aliexpress”, where you can find products in a wide range of price categories. Especially for this in large online stores the filter costs: The buyer can immediately set a convenient price. This approach allows multi-brand stores to retain a wide variety of customer segments.
Assortment. At the beginning of work, select a few items, then begin to expand the range. Remember, brand diversity is your thing, so move in that direction.
Employees. The work of the employees is not very different from the duties of employees of a mono-brand store. These are managers who communicate with clients, couriers who deliver orders, and management. There are differences among marketers - the promotion of multi-brand online stores is a special topic, we will talk about it at the end of the article.
Prospects. As experts say, a multi-brand has a much better chance of scaling its business. Purely mathematically: one brand has nowhere else to grow, and if there are many of them, there is more product range, more target audience, and more growth opportunities.
Advantages of a multi-brand store
- diversity of target audience: everyone will find a product to their liking and wallet;
- wide range: with the proper approach, a multi-brand store should present dozens and hundreds of brands of various categories, styles and trends;
- constant demand, even during seasonal downturns. In winter they don’t buy swimsuits and inflatable pools, but they destroy skis and skates;
- flexibility, elasticity of sales: when there are many brands, the loss of one of them will not be a tragedy;
- advantages in search engine promotion. Look at the Yandex top: multi-brand stores are always on the first lines. This is explained simply: the more brands, the more links and keywords. Yes and algorithms search engines prefer sites with a large assortment;
- the ability to quickly respond to customer requests. If a brand is not selling well, you can refuse its services and start working with another;
- convenience of buyers. If a client does not like one brand, he will not leave the store, but will easily switch to another;
- greater independence: you are not tied to a specific brand, but control the assortment and interests of your business as a whole.
Disadvantages of many multi-brand stores
- there is no unity in the presentation of goods, descriptions and photos often look varied;
- there is no clear concept in the selection and presentation of goods. The online store turns into one big market where you can wander for hours and end up not choosing anything;
- not all consumers are familiar with the brands presented. As practice shows, many people do not care what the brand is called: the main thing is that it is cheap, functional and beautiful;
- at the same time, many people get used to a certain brand and prefer to buy it. In this, a multi-brand store may lose to a mono-brand that has won the trust and loyalty of customers;
- Products from the same brand are usually easier to combine. Customers are often confused when they have to choose from a variety of products from different manufacturers.
Now that you know your weak points, correct the mistakes of your competitors and turn disadvantages into advantages. We'll tell you how now.
How to create an effective multi-brand store
1. Decide on the type of goods and brand names. This is a very important stage: it is the selected categories and brands that will determine your target audience for a long time to come.
3. Create a USP - unique trade offer , which will become the highlight of your store. This could be a new promising brand that has not been presented before, or a record-breaking low prices, or good cashback, and so on.
4. Find reliable suppliers who will supply you with goods in a timely manner. Your profit and regular updating of your assortment depend on the reliability of the supplier. If a partner reveals himself to be an unscrupulous supplier, it is better to immediately refuse his services and look for other brands.
5. Enlist the support of famous brands. Familiar names attract people and trust them more. At least at first, start working with well-promoted brands, and then look at the situation.
6. Prepare backup options in case it doesn’t work out well with some brands. There should be several such options in stock: force majeure always happens in business.
7. Develop the site structure: many brands means many sections of an online store. Your task is not to turn the site into chaos in which nothing can be found, but to provide visitors with competent navigation and provide answers to frequently asked questions.
8. Draw up a business plan and promotion plan for an online store. A business plan is needed to determine pricing policy, calculate income and expenses, turnover and profit, and also predict the development of the store for some time in advance. A marketing plan will allow you to correctly allocate resources and understand which products you need and which are better to refuse.
Promotion of a multi-brand store
Remember your main strength is the wealth of choice and breadth of assortments. This means that you need to rely on this when drawing up a marketing plan.
1. Mission. A monobrand store, as a rule, promotes one mission, values, and idea to the masses. For example, clothes for a comfortable city life, or gadgets for modern teenagers. In a multi-brand store, everything is different: Dozens and hundreds of brands, missions, and values will be intertwined on your website. Our advice: come up with your mission, for example: unite the best brands, give people the opportunity to join little-known brands, and so on.
2. Content, site content. This is the main page of the online store, product cards, frequently asked questions, a section where the terms of order and delivery are stated, and if there is a blog. Since there are many brands, your task is to prevent the client from getting confused among them, simplify the search and selection process for him. Remember, if a person does not understand at least something, he is unlikely to deal with the issue on his own, but will simply leave the site and go to another online store, since he has a choice. Means, it is necessary to structure the information as much as possible: create sections for each brand, think through product descriptions, and be sure to write answers to frequently asked questions. If you have a blog, that’s great, tell us about the brands and products you represent, and communicate with customers directly.
3. We also recommend making sections by category: clothing, appliances, household goods and so on. This is necessary to make it easier for customers to select items from different brands. For example, kitchen towels, a set of dishes and a tablecloth should be in the same style. Help the client: direct him to the section where things for the home are collected. Make a filter not only by price, but also by color and material for a more convenient search.
4. Photos of goods. Disadvantage of the online store: diverse photos. It is unlikely that you will be able to photograph all the products of all brands in the same style. Be prepared for people to send you photos of varying quality, different sizes. Your task is to create photo requirements in order to bring them to the same denominator as much as possible.
5. Direct promotion. In SMS messages and email newsletters, also focus on the abundance of brands. Push this topic, remind us more often about diversity. For example, when offering promotional products to a client, provide links to new brands - and indeed, promotions themselves are usually made for new items in the range. Thank you for purchasing the product, suggest brands of similar themes and price categories. Show concern for the client, give him a choice - people appreciate this.
6. Install a chat on the site to talk with a consultant and make it the responsibility of one of the employees to respond to customer letters. If a person has a question, not everyone will start looking for the questions and answers section or write feedback. It is much easier to use the services of an online consultant.
7. Work on your reputation, win people's attention. Regularly hold competitions, promotions and sweepstakes, start a group on social networks, publish reviews from happy customers. Collect a circle of regular customers who will subsequently recommend your online store to friends and acquaintances.
So, a multi-brand store gives you a certain freedom of action, independence from a specific brand and at the same time - full responsibility for sales and profits. It depends only on you whether your store will not become a dumping ground for assorted goods. Only you can attract good quality brands to your site and tame buyers. Remember that we are responsible for those we have tamed!
For many, shopping is an art. Girls can spend hours discussing new collections, seasonal discounts and who “grabbed” a wonderful top for ridiculous money. That is why before going shopping, the question arises - where?
There is more than enough choice of places now: mono-boutiques, multi-brand stores, and shopping centers(where, in addition to clothing stores, you can find furniture stores or grocery hypermarkets). But still, let’s consider the pros and cons of mono-brand and multi-brand stores, highlighting the main criteria by which we will evaluate:
Assortment
- collections update
- store concept
- style decision (looks)
- promotions, discounts and discount system
Multi-brand stores primarily feature 5 or 6 (or maybe more) brands.
The main advantage of a multi-brand store over a mono-brand is variety. But often it is positive quality becomes a disadvantage, and the store turns into a dump of various things, although they may all be interesting and beautiful, but they cannot be seen at all. In addition, do not forget that the collections and size range in a multi-brand store are most often incomplete, unlike mono-brands. And jumping from store to store is tiring...
Undoubtedly, owners always monitor the tastes of their customers and adapt to them when choosing brands, so it should not be surprising that over time some leave and new ones take their place. But the only downside to changing collections in the store is that it happens only 2 times a year.
As for the concept, multi-brand stores are much more mobile and creative, since they do not depend on the decisions of the head offices of the brands. This is a great advantage because commerce, by its very nature, should be easily adaptable to the needs of the market.
Although today some stores deny any concept for a multi-brand in principle, which can also become a rather strong concept. Here, a lot depends on the marketing of the store itself and on how clearly and tasty this idea will be conveyed to the consumer. Thus, Dover Street Market in London is rightfully considered an independent brand and plays with traditional concepts, thereby attracting more and more new customers. Although for the most part stores adhere to their concepts: here are a couple of examples, UK Style shop only buys British clothes, Kickbox is a store for young people, TSUM is designed for wealthy customers, therefore the brands are appropriate, Leform presents only conceptual brands, Euro Fashion is positioned as a store of impeccable style.
The attractiveness of a multi-brand is ensured by the variety and wide choice of assortment. Mix is in fashion today. Many famous people easily wear a Chanel top and a skirt and accessories from Topshop. Therefore, you need to mix wisely - so that it is not noticeable that it was carefully thought out and calculated. This requires experienced buyers with very good taste, practically these are the designers of their store.
Of course, multi-brand stores organize seasonal sales, as well as various promotions, which is very nice. But the conditions of these promotions are not always “convenient”: a discount is provided when purchasing 2 or more items or at a certain time of the day. Therefore, having looked at, for example, shoes or boots in some other store, you may not buy them only because you buy shoes and clothes in a multi-brand store and this gives its own bonus. The same situation applies to the discount system.
Mono-brand stores is one brand designed by a designer. Their features:
They always differ in their own style, which is created by the brand designer, which on the one hand is both a plus and a minus, because a person’s interest and taste is so variable that today he likes one brand, and tomorrow a completely different one. And now you won’t guess...
Of course, unlike multi-brand stores, in mono-brand stores the collection can change up to 40% during the season. Many famous brands updated almost every week. As an example, we can cite an interesting fact reflecting the concept of fast fashion: at a concert in Barcelona, singer Madonna performed in bright skirt. After 5 days, the same skirt was in all stores of one famous Spanish brand. And after just one day, all the skirts were sold out.
The concept of the store, as already mentioned, is determined by the ideas of the designer. But time does not stand still: mono- or global brands are highly competitive, they are active and successful in conquering various market segments: in addition to clothing, they can develop cosmetics, underwear, accessories, and shoes. Although everyone understands perfectly well that the company will not be able to keep track of the quality of the entire range. Thus, the Davidoff company, which produces cigars, cigarettes and perfumes, developed, according to experts, a direction that was absolutely unsuccessful in its execution - coffee.
And lastly, unlike multi-brands, promotions and discounts happen faster because they don’t have to coordinate their marketing plans with anyone. Although many mass-market brands do not provide a discount system at all! I would really like to add another card to my “collection”!!
Of course, the choice of store is always up to the buyer. What do you prefer?
- Anastasia Yarchuk
- 02.08.2010, 12:42
- 2889 views
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