Retailing, Franchising, and Consumerism Business Intelligence in China


Chinese Retailers And Suppliers Agree On Fair Promotion

According to reports in local media, 70 retail enterprises and 200 suppliers recently gathered in Beijing and signed the "Proposal for Fair Cooperation and Promotion of Retailers and Suppliers".

Under the proposal, retailers should implement promotional activities in accordance to the promotion agreements and should not offer prices that are lower than their purchase prices or the agreed prices during the promotions; meanwhile, suppliers should not promote their products at prices lower than their supply prices or the agreed prices either. Both the retailers and the suppliers should make reasonable estimations of the volume of the promoted products and losses caused by sales that exceed the estimated volume should not be passed on to the suppliers.

Since the second half of 2008, retailers in China have launched promotions frequently to respond to the sales decline caused by the global financial crisis, but this led to the worsening of relations between retailers and suppliers. This proposal is expected to regulate their promotional activities and improve the relations between retailers and suppliers.




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