In an article published yesterday in the Wall Street Journal it was revealed that Best Buy plans to rapidly grow its Private Brands in the home electronics categories. Best Buy hopes to use their Private Brands to create competitive differentiation and gain an edge over rivals Wal-Mart and Amazon
According to the article sales of Best Buy Private Brand electronics have increased 40% in the last fiscal year. Products should include: GPS, HD radios and digital picture frames. Best Buy Private Brands currently include: Insignia and Dynex televisions, Rocketfish video cables, Geek Squad flash drives and Init electronics cases and accessories.
Over the last ten years Best Buy has seen its share of success and failure including the recall of 13,000 26-inch Insignia televisions due to reports that two had caught fire in consumers’ homes. As well as the success of a spill-resistant, ruggedized portable DVD player for kids sold under the Insignia brand.