In this video, Mr Aggarwal speaks about whether to have your own brand or not.
5 major things to be taken care of when you want to go for branding are:
- Is it profitable? Calculate the profit.
- Is it expandable? Can you expand it all over India?
- Can you it a brand name? Can you stamp your brand name over it?
- Is it sustainable? Can you run it for 10-15-20 years?
- Can you have things in huge quantity in it? Or you will have to be limited to a smaller quantity?
After knowing all these things you can decide whether branding should be done or not.
Advantages of Job Work (Non-Branding) (from 1:35 min)
- It is very economical as there is no expenditure on labelling, tagging, packing and advertising. All this leads to more profits. You may keep these increased profits either in your pocket or you may pass them on. If you pass them on, your sales would increase.
- You deal directly with the wholesalers in this case whereas in other cases you deal with name brands head to head for which you will have to do promotions. These promotions may be harmful to you.
- My product, your brand name. This means you supply your product to the dealer and they will sell it by their own name.
- World is your market. 99% export from India is without name. So you can sell your products without brand even outside India. Many brands outside India get their products made from India.
- Many labels to offer. Everyone wants to earn more and more profit. So some people take things from different brands and sell it at different prices.
- No monopoly to any buyer. If you have branded product, you may have a limitation of selling it around the place from where you bought it. If there is no branding, you can sell it anywhere.
Advantages of Brand Name (from 4:50 min)
- Name, Fame, Identity- One can get all these things only if you have a brand name.
- Bigger the brand, more the profits- You can sell branded products (well known brands) at higher price which would mean more profits.
- Word of Mouth- People will talk about you, you will get references from others if you are a brand.
- Search Engines- You can get online orders if you are a known brand.
- Like, Know & Trust- People would like, know and trust your product if it is branded.
- Loyalty for Generations- People can take these brand names for generations.
- New Product Launch- If you bring a new product, your loyal customers would be ready to test it and would also give you suggestions for improvement.
Things to Remember (from 8:01 min)
- Searchable Name
- Franchise Model
- Auto Pilot