Research, Development And Revelation Of Foreign Retailers' Private Label Strategy In China's Retail Market

On December 11th 2004 China opened up its retails business to the foreign retailers bylifting the previous imposed limitations such as coverage regions, equities, and quantity tothe foreign retailers. These changes resulted in fiercer competition in China's retailbusiness.The foreign retailers' using private label strategies became a part of big competition to thelocal retailers. Private labels or own brands are retailers' brand, the foreign retailers use thelocal factories for manufacturing, this give them the advantage of reducing themanufacturing cost that resulted in higher profit. The concept of of Private label also helpseparate them apart from other retailers. This concept and strategy had proved to be verysuccessful as are now being widely use among the giant retailer stores such as Wal-mart,Carrefore, Tesco and Lotus supercenter.This paper mainly give an introduction of private label in term of the concept , type ofproducts, manufacturing methods and the procedure. It also includes analysis of thebenefiting of private label to the retailers, customers, and manufacturers. Analysingexamples of successful can provide useful information and successful market strategies toChinas' local retailers.