A Study On Vertical Restraints By Multinational Retailers In China

Under the background of superfluous economy where supply exceeds demand,multinational retailers get expansion rapidly in China by means of store expansion, M&A and a variety of retail formats development. As the information technologyimproves continuously, multinational retailers obtain good benefit and the buyerpower. So multinational retailers, depend on its dominant position in the market,implement a series of longitudinal control to our suppliers, and it will have a badeffect on the each part of supply chain and the whole safety of industrial economy.Therefore, this paper is based on the theory of “productivity--the mode of production--the relations of production”, from the perspective of social productive force’sdevelopment and transnational retailers’ operating mode, and concludes that themechanism of transnational retailers’ longitudinal control in China is a cycle pathswhich can be positive feedback and self reinforcement. At the meantime, this paperestablishes a multiple regression model to test this essence of transnational retailers’longitudinal control in China, in order to provide reference for the governmentregulation of transnational retailers’ longitudinal control and a new perspective forour supplier to resist multinational retailers’ longitudinal control.The first chapter is introduction. It mainly introduces the background andsignificance of the topic, the reviews of previous international researches and themain research content and research method of this article. The second chapter definesthe connotation of transnational retailers’ longitudinal control in China, describing thecharacteristics of transnational retailers’ development and investment in China,summarizing the main performance of transnational retailers’ longitudinal control inChina. The third chapter concludes that the mechanism of transnational retailers’longitudinal control in China is a cycle paths which can be positive feedback and selfreinforcement on the basis of the theory of "productivity--the mode of production--the relations of production". The fourth chapter, based on the second and the thirdchapter, establishes multiple regression model, selecting the appropriate indexes,testing the mechanism of transnational retailers’ longitudinal control in China. The fifth chapter analyses the anti competitive effect that resulted from transnationalretailers’ longitudinal control, and puts forward some corresponding suggestions forthe regulation of transnational retailers’ longitudinal control.