We are seeing more and more private labeling across many industries in the business environment today. It's an opportunity to neutralize the threat of suppliers for many retailers. Dick's has great brand awareness throughout the United States and they sell all of the top brands like North Face, Nike and Under Armour. What would happen if the suppliers changed their business practices or created new partnerships with competitors, would this leave Dick's in a vulnerable position?
Maybe...and given Dick's own strength of brand, would it make sense for them to start going into the private label business and start selling their own brand of clothing and sports equipment? This strategy has worked out very well for other giant retailers like Costco and Target. Their own brands of Kirkland and Archer Farms respectively have become household names for many consumers. This strategy would help neutralize the threat of suppliers, especially suppliers that have so much control with their retailers.
I wouldn't be surprised to see "DSG" branded athletic apparel in the near future. Can't you imagine the mannequins greeting you in the store with a "DSG" logo'd shirt holding a golf club with the same branding!
How would you design the logo???
Rick will give weekly updates on one of the more community friendly companies in America.
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