SUCCESSFUL STRATEGY FOR OWN BRAND LABELS
OBL is a strategically important area for DistIT and is found to varying degrees in the offers at Aurora, Deltaco and Septon. Through well-established processes for sourcing and the creation of commercially strong concepts, DistIT can offer its customers unique and profitable products at attractive market prices. The offer of OBL has also been tested in export markets and is ready to be exported outside the Nordic and Baltic countries at an even higher rate.
PRODUCT DEVELOPMENT AND QUALITY
The OBL organisation within DistIT works continuously to identify and create new, or improve existing, products, concepts and brands in line with what the market demands. Own product development on a component level is important for differentiating oneself from other competitors or customers’ own OBL projects. The focus in the product development process is simplicity, and that the product or concept shall satisfy the end customer’s needs and their expectations regarding functionality, price and quality. DistIT works with a consolidated supplier base, which provides increased purchasing power, fewer contact areas and improved logistics, which together increases the efficiency of the process. Fewer and more carefully selected suppliers ensure a high volume, high level of service, improved and simplified quality control, and lower purchase prices. In addition to the product, everything from packaging design, manuals in different languages, concept documentation and marketing materials are produced internally, which provides good cost control and management in the various projects.
During 2020, DistIT has raised the bar in the choice of products and services, among other things, a product series with SMART HOME products and integrated software has been successfully launched on the market. Furthermore, internal quality control has been strengthened through an improved test lab in Älvsjö with a high-tech XRF scanner, procured to check the quality of incoming products and strengthen the quality work.
The goal for product development is to be innovative and develop unique, test-winning products with good design and attractive packaging, in order to create exclusivity in the markets where DistIT operates. Continuous trend monitoring is a crucial part of the task to be able to quickly launch new products and concepts on the market. The ambition is to launch a new OBL product on the market within six months of making the decision.
ESG RESPONSIBILITY
Environment, Sustainability and Governance are constantly in focus in the work with own brand labels. To protect the environment and meet what customers demand, the OBL organisation has developed packaging that is eco-labelled with FSC (Forest Stewardship Council) and has a design that is in line with what customers demand. The goal is to minimise plastic materials, both in packaging and as packaging materials. Furthermore, DistIT has strengthened sustainability of the supplier level, as the consolidated supplier base makes it possible to collaborate with selected certified suppliers who can ensure sustainable production with good working conditions in the factories. With fewer suppliers within OBL, DistIT has also strengthened the control of the supply of goods, as this means increased traceability, and control of the product flow and quality work.
MARKETING
An important part of DistIT’s work with OBL is to build strong brands that customers demand. By continuously working with relevant marketing in both physical and digital channels, product, concept and brand awareness among customers and consumers is accelerated. In 2020, the marketing organisation was strengthened with new leadership and expertise in digital marketing. This has resulted in a number of successful projects, including within the Gaming concept, where Deltaco Gaming has been a partner for online tournaments, and the L33T Gaming brand has become the official sponsor of a professional team within E-sports.
OBL PROFILE
DistIT currently has several own brand labels in different product categories, which are aimed at both companies and consumers. The brand strategy is to have the following profiling, with a focus on volume, quality, megatrends and best-in-test.
VOLUME
Products and brands at a good price that are included in the volume segment.
QUALITY
Quality is an important part of product development work in order to strengthen customers’ price and quality perception.
MEGATRENDS
Products, concepts and brands that are in line with megatrends in society
BEST-IN-TEST
Brands that gain legitimacy by being classified as best-in-test according to relevant media.
NEW OBL CONCEPTS
In 2020, DistIT launched five new concepts, all of which were well received on the market.
THE CONCEPTS WITHIN OBL ARE IN LINE WITH CURRENT MARKET TRENDS
Accelerated digitalisation and an increased focus on sustainability are clear examples of trends that characterise DistIT’s markets. An important part of the strategy is to develop OBL concepts that meet the demand driven by ongoing megatrends in society.
5) BlackRock, www.blackrock.com, ”Megatrends research study”, 2019
6) Statista, Internet of Things (IoT) Connected Devices Installed Base Worldwide from 2015 to 2025
7) Newzoo Global Games Market Report, 2020
8) Cisco, ”2020 Global Networking Trends Report”, 2020