An Analysis Of The Impact Of Developing Own Brand On Retail Sale And Purchase

With the development of the economy in China nowadays, retail is playing a more and more important role in the market economy. Although the development history of China’s retail is not long, we witnessed great breakthroughs in recent decades in the historical background. At present, consumers have become the market leaders. To meet the diverse needs of the consumers, retail enterprises have to provide excellent service and products. However, compared with some western countries, there are more links of circulation in China’s retailing market which hampered the development process. Without enough diverse products, China’s retail is struggling in low-margin dilemma. Private brand is not only an effective way to expand the proportion of self- operation, but also can help retail enterprises get out of dilemma.This paper began with comparison in two different operation models in western and Asian retail enterprises, analyzed the pros and cons of joint-operation and self- operation models. To analyze the effects of private brand, we studied the purchase, transport, sales process and took the Carrefour supermarket as an example to support the conclusions. Then, we built a model including consumers, producers and retail enterprises to discuss from an economic perspective, the results suggested that private brand can improve consumers’ surplus and social welfare. Finally, the paper provided some practical advice from different angles. Retail enterprises in our country should change the management model and expand the proportion of self- operation.