Regional Retailers And Fmcg Manufacturers Channel Alliance

Since December, 2004, the limitation on the investment regions, stockholding right and the number of retailers has been removed away according to the negotiation agreements of WTO. From then on the foreign retailers accelerate their pace to enter the Chinese market, which brings huge pressure to the Chinese retail trade. And the new industry pattern also challenges the local retailers. Nowadays in big cities, such as Beijing, Shanghai, Shenzhen, etc., where the retail trade competition is extremly intense, the market tends to saturate, so the huge retailers turn to the middle and small cities, which brings pressure to the regional retailers. Therefore the regional retailers have to seek effective measures to enhance their competitive power. At the same time, the FMCG (fast moving consumer goods) manufacturers also get ready to deal with this new competitive situation and put more resources into the middle and small cities. Since the retail trade is extremely competitive, conflicts between the regional retailers and FMCG manufacturers occur frequently in the middle and small cities. Now the channel relationship wastes lots of resources and energy, which not only influences the realization of the goals, but also fails to meet the needs of the consumers. Therefore, the theorists and enterprises are concerned about how to seek effective solutions to sloving the conflicts under the new competitive envoriment.The relationship between the retailers and the manufacturers is always the empasis of channel research in previous research. But the previous research only generally analyses the channel members and the relationship between the retailers and the manufactures. The research results have not pointed out what should to be done in practise. This paper focuses on the main bodis, namely the regional retailer and FMCG manufacture, which were not paid its due attention in the previous research. In addtion, this paper proposes that the channel alliance solve the conflicts and the paper fills the blank of the channel alliance research theoretically.At first, the paper will analyse the background and the significance of this topic. Then the paper provides the theoretic summary of the related research in the channel alliance, and puts forward the topic----the alliance between the regional retailers and the FMCG manufacturers. The paper then analyzes the current situation of the management, the changing stage of the channel relationship between both sides, the cooperation and the channel conflicts, and puts forward the effective way for solving the channel conflicts. Then the paper tells about how to construct effective channel alliance from the perspective of impulsive causes, principles, elements, process controlling and performance assessments. In the last part, the paper will take the supermarket of Jiajiayue at Weihai and the Wrigley Confectionary Lit. Co. (China) as a case, analyzing the problems and the causes in the present channel relationship, and shows how to implement and assess the channel alliance.