Retailing, Franchising, and Consumerism Business Intelligence in China

Regulation For Supermarkets' Goods To Be Released

The China Chain Store & Franchise Association is drafting a regulation on supermarket's self-branded goods and the regulation is to formally come out in early 2008.

At present, such supermarket giants as Carrefour, Wal-Mart, Lotus, Metro and Watsons have each launched their self-owned brand goods. Metro, for example, has already launched as many as 1300 kinds of goods with its own brand, covering drinks, wines, clothes and office stationery. Wang Jiancheng, general manager of Metro Guangzhou says that these self-owned brand goods help them reduce their production costs by 30% and therefore yield higher profit.

Statistics show that self-owned brand goods only accounted for 0.5% of the total goods among the top 100 supermarket chains of China in 2006, but these goods are of different quality standards. The issuance of the new regulation is expected to make the supermarkets' self-owned brand goods more acceptable for consumers and to ensure their quality.

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