BRANDED GOODS

Auckland Star, Volume LXXIII, Issue 123, 27 May 1942, Page 3

BRANDED GOODS

ELIMINATION QUESTION j BUSINESS MEN'S CONCERN I SYDNEY. May 2.",. ; Some concern is felt among business j men in Sydney over the action of the Commonwealth authorities in eliminating private brands under the programme for concentration in industry. So far. the Commonwealth powers have been used sparingly, and it is recognised in business circles tHat there is little justification even in peace-time for the multitude of brands that prevail in some kinds of consumer goods. There is. moreover, little demur against any action which the Commonwealth Government may deem it necessary to take as an emergency measure, provided that the individuals and firms , who lose their business for the duration of the i war have a reasonable chance of recovering it after the war. It is pointed ou f . that leading manufacturers and traders have spent years in creating goodwill for their products by maintaining high standards of quality and of familiarising the public with their name and brand. If they are no longer permitted to sell branded goods the goodwill upon which their business will depend after the war will be lost, and it is also considered that, the authorities may find difficulty in supervising the quality of the goods sold to the public. The popular method of concentration in Britain has been that of selecting a "nucleus" firm for a group of manufacturers. The nucleus concern continues to operate its factory at capacity while the other factories in the group are closed down. The various firms do not lose their individuality, however, as the nucleus factory sells the sroods at cost to the others, who may then continue to distribute them under their own brands. This has not solved all difficulties, especially where firms have in the nast perfected snecial methods of their own. but it has been a ; fairly successful expedient for keeping names be- , fore the public.