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Developing Private Label Between China And Uk Essay

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In recent years, due to the change of own profit model, high inflation, increasing operating costs and competition from online commerce, traditional retail businesses have grown slowly in China. Chinese retail business, especially supermarkets need to be transformed and updated. Developing private label brands is one of the most efficient ways to realise supermarkets ' transition and updating, it could reduce costs and improve supply chain system. However, the development of supermarket private label in China is only in start-up stage now which leaves plenty of scope to learn from mistakes and successes from other businesses. The British retail market is the second largest in Europe, and has the highest profit margins in the world. Its supermarket private label has developed into a mature stage (Zhen, 2007). Since there are limited studies in the area of analysing the gap between British and Chinese supermarket in developing private label, this study will help to stop the gap in literature study of comparing the development of private label between China and UK. In addition, it may predict the future developing trend of Chinese private label and benefit Chinese supermarket managers on how to introduce more successful strategies of private label products in further development on the basis of British experience.
The author chose this topic due to a personal interest on the development of supermarket, growing up in a family where most members work in the retail industry.
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