Business Intelligence on Retailing, Franchising, and Consumerism in China

Physical Conflict Between Zhengzhou Carrefour And Supplier

According to local media reports, dairy service firm Zhengzhou Mengniu Company recently used more than 100 of its employees to protest Carrefour's pressure to have the dairy company purchase mooncakes from the supermarket.

According to Lin Chengsong, general manager of the Zhengzhou Mengniu Company, Zhengzhou Carrefour had pressured them to purchase mooncakes worth about RMB30,000. As Zhengzhou Mengniu hesitated to make the purchase, Carrefour lowered Mengniu's prices at their store, creating a lower profit margin for the company.

In retaliation, and as an apparent act of civil and consumer disobedience, Zhengzhou Mengniu organized more than 100 employees, each of them taking a RMB100 note to buy a product worth about RMB1 each from Carrefour. This caused problems for Carrefour, as its checkout lines became long and cashiers ran low of small change.

Three employees from Mengniu and one from Carrefour were injured in the ensuing physical altercation. The police reportedly detained four people from Mengniu, including the general manager, and two guards from Carrefour who were accused of beating others.

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