Research On The Modular Sopply Chain Of Retailers’ Private Label

In the1960s, along with changes in the supply, the demand situation and thetype of market, retailers gradually rise and brand manufacturers’ status were replacedby retailers in the supply chain. In order to resist the various constraints of themanufacturer, retailers began developing its private label merchandise. With theintensification of the contradiction between the suppliers and retailers are increasing,and competition among retailers are increasing homogeneous, which forced moreand more large-scale retailers to develop more and more types private labelsmerchandise. The development of private label merchandise can not only ease thecontradiction between the suppliers and retailers, can also make the retailersimplement competitive of differentiation, the retailers’ profits is improved inultimately. But most retailers develop its private label goods also use the traditionalsupply chain, not to use the advanced modular supply chain. Modular supply chainhas been used in other industries, for example, cars, aircraft and computermanufacturers. And it gradually promote more industries and areas. The retailerswhich have conditional to use modular supply chain should actively adopt the modeof modular supply chain to product private label productions. In currently, theoreticalstudies of about private label mostly focus on the development history and current ofprivate label, the motivation to develop private label, the factors that affect thesuccessful of developing private label etc, or separate to research modular supply chain.But there are very little literatures to research the modular supply chain of privatelabel. Based on the current research situation, we take advantage of the economicmodel and case analysis to research the modular supply chain of private labelmerchandise on the theory and practice. That can provide some of help on theory forretailers to develop private label in the future, which can have retailers, suppliers andconsumers get more benefits from the development of private label.Firstly, this article reviewed the literature of private label, modular supply chain,supply chain management, and describe some of the concepts, that set forththeoretical basis for the following research. Secondly, this article through clarifyingand analyzing the characteristics of retailers, the competitive advantage of privatelabel, the way of producing of private label and the process of construct modularsupply chain to research on building the modular supply chain of private label. Again,this article use economic models to study three aspects, include the value-added mechanism, the mechanism of trust and the profit distribution mechanism, which forachieving a comprehensive analysis to the operation mechanism of modular supplychain of private label. Next, this article analyze modular supply chain’s collaborativemanagement of private label by mode and content of management. Finally, this articleanalyze the supply chain of private label of the Carrefour and Li&Fung Group,draw conclusions, and give some suggestions to develop retailers’ private labelcombine with the conclusions, which provide some guidance for the futuredevelopment-path of the retailers’ private label.