Local Chain Supermarket Own-brand Strategy Research

The Development of Private Label Product in Supermarket Chains has changed the role between retailers and manufactures. With the mature of development, Distribution Capabilities in traditional channel begin to lean towards retailers, at the same time, retailers find a new profit growth point. So, the Development of Private Label Product is a very important and strategic significance for retailers to build brand credibility, increase enterprise profit growth and improve comprehensive competitiveness. But in China, under the Macro background of open retailing market, the competition among Supermarket Chains is becoming fiercer and fiercer day by day. Many local Supermarket Chains follow foreign Supermarket Chains in development of Private Label Strategy, but the result is not good. Meanwhile, some foreign Supermarket Chains also meet many problems when they executive their Private Label Strategy. All in all, the Strategy of Private Label Product is an inevitable trend for Supermarket Chains, and it is worth to discuss how to develop and executive.In this thesis, some Strategy Management models are used to analyze the Strategy of Private Label Product in Supermarket Chains. Firstly, the Political, Economic, Technological and Social environment in China are elaborated by PEST Model. And then author of this article expound the Chinese retail industry through Value China, Industry Life Cycle and Porter Five Force Model. Through combining retailing external environment and current development situation of Chinese Supermarket Chains, the author analyze the generating background of Private Label Strategy. After SWOT Analysis, the author discussed the Private Label Strategy mode. And then, based the case of Strategy of Private Label Product in Carrefour China, the author told the success points and failure points of Strategy implementation in Carrefour China. Finally, due to what we have discussed and the Carrefour case, the author put forward some procedures for the implementation of the Private Label Product Strategy for Chinese Supermarket Chains. The Strategy of Private Label Product is a long term strategy and is developing well in western retailing market. At the same time, in Chinese retailing market, the development of the Private Label Product Strategy in foreign Supermarket Chains is very successful and intensive. Therefore, for the Chinese Supermarket Chains, the development of Private Label Product is a must, and also a trend. How to develop this Strategy effectively? In author's opinion, excepting in referencing the development experience of foreign Supermarket Chains, the Chinese Supermarket Chains should explore unique Strategy development methods by combining Macro-environment and own characteristics. For example, on developing the Strategy of Private Label Product, the Supermarket Chains can build Strategic Alliance with the suppliers, focus on branding or adopt multi-brands strategy, and utilize some new technologies like E-commerce etc. This article just focuses on the Private Label Product Strategy and doesn't mention other strategies. Considering the complicated situation of Chinese Supermarket Chains, the author didn't do Quantitative Analysis for competition situation of Chinese Supermarket Chains. In addition, the Supermarket Chains, as a main and important format in retailing industry, was discussed in this article and other formats were not mentioned.