Cameron-Shaw is a leading retail operation consisting of a flagship in Dallas and fifteen branches throughout Texas and California. The flagship and its branches are all extremely successful in terms of volume and profits. Its volume ranks among the top department store organizations in the West. The stores are operated as high-priced, prestigious retailers. The labels and brands that they carry are among the best known and come from all of the major fashion centers in the world. The company does not offer private labels or brands to its customers. Instead, along with its marquee labels, it mixes in an assortment of little-known brands. Its records show that these lower-image labels achieve greater markups and profits than the better-known products. This, of course, is based on an absence of competition that is the case with its high-profile lines. With the evidence that higher markups can be achieved with lesser-known goods, the buyer for bridge collections, Emina Chang, has suggested that the company consider entering into private labeling. This would enable the organization to carry merchandise that it develops and mark it up higher. She reasons that with the company's excellent reputation, and the assistance of an outstanding buying team, private labeling should be a relatively easy task. Ms. Chang suggests that they first begin with some bridge merchandise and slowly add other lines to the model stock.

1. What other information would you like to have, in addition to Ms. Chang's opinion, before embarking on a private label?

2. Do you think a store of this nature is appropriate for this type of merchandising?