More and more entities are joining this trend in order to eliminate intermediaries in the distribution chain, which results in greater profitability.
He Brandware It is a growing concept, comparable to the idea of “own brand” or “private label”. The novelty is that, for some time now, more and more banks – not just companies – have decided to join this trend.. There is a good reason for this: by using Brandware, Financial institutions can feed their marketplaces with high-level products and their own brand. Thus, they manage to eliminate intermediaries in the distribution chain, which results in greater profitability.
On the end consumer side, I like to think about the Brandware as a set of services that facilitate access to a product, but at a much lower price, especially those of technological origin that are usually manufactured in China. To take a dimension, the retail price will be 10% lower than another product with the same characteristics from recognized brands.
The advantages that are seen among the banks that already execute the Brandware, As the Bank Of America with its Quince brand, consist of achieving a benefit for the entities’ clients (they pay less for the same product) and thus, working on loyalty. On the other hand, by attracting new customers, banks stop depending on the commercial policies of brands that they do not own and sellers. This avoids the possibility of a bad reputation by not publishing high-turnover products that are sold elsewhere. marketplaces or for having a more expensive RRP. Investment in marketing causes the bank to increase the value of its brand, which enables the possibility of determining the positioning it wants to give to its brand’s products according to the characteristics of its customers.
But if there is something that deserves mention, it is that With Brandware the profitability is much higher: the average commission that banks earn for intermediating the sale of a product from other brands is 10%, while with Brandware it reaches 32% on average. There’s more: experience shows that the bank’s online sales can increase up to 3 times if it has a complete product line with constant inventory. At the same time, sales of complementary financial services to its clients increase.
For some time now, it has seemed essential to me to communicate these benefits in the financial market. In 2023 I have launched an Executive Program on Brandware, jointly with UCEMA, which is the first of several that will take place in other countries. At the same time, a new edition of this Program will be held in 2024. This specialization is the response to that need, since it trains students to coordinate all stages, from the purchase order to the arrival of the created product at the warehouse. Succeeding in this new paradigm requires executing numerous tasks with precision. Around the world, banks are creating marketplaces and developing their own brands, allowing them to increase profits and compete effectively.
Source: Ambito
