Distribution Networks - Supermkts/Stores

An Expert's View about Distribution Networks in China

Last updated: 22 Feb 2011

How to Develop Distribution Networks Through Hypermarkets/Supermarkets/ Convenience Stores

7-1 Entry Models for Enterprises

The merchandising department of hypermarkets, supermarkets and convenience stores generally source from manufacturers or distributors. Goods are mainly sold by means of consignment, buy-out and leasing. Sizeable supermarkets run by foreign investors are particularly demanding on product quality and the stability of supply.

7-2 Procedures for Making Purchasing Decisions

In a bid to exercise stricter control over product quality and lower coordination and transaction costs, supermarkets are moving towards centralised purchasing systems under which central buying offices will source goods in bulk. Goods will then be distributed through a network of sales centres to various shops.
For products that have not been handled before, newly-developed products with new functions and new features, products provided by new suppliers, and products with new brands, supermarkets usually have a mechanism for handling these new products:

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Posted: 21 February 2011, last updated 22 February 2011

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