Title: An exploratory study of Chinese own brand strategy in the grocery sector

Authors: Wei Song; David D. Schein

Addresses: Business School, Black Hills State University, 1200 University St. Unit 9007, Spearfish, SD 57799, USA. ' Reginald F. Lewis School of Business, Virginia State University, PO Box 5135, Midlothian, VA 23112, USA

Abstract: The purpose of this study is to explore the Chinese own brand strategy in the grocery sector by applying two competitive advantage theories. The theories are Porter's Generic Strategies model and Hunt's Resource-Advantage theory. Three sets of Chinese own brand strategies are reviewed. A preferred Chinese own brand strategy combining cost leadership and differentiation simultaneously is identified. A qualitative methodology is utilised to examine some of the many facets of own brand development in China. The main data for this study are drawn from semi-structured interviews and selected store observations in Shanghai, China. The implications, limitations and directions of the study are discussed.

Keywords: own brands; brand strategy; grocery sector; competitive advantage; cost leadership; cost differentiation; resource-advantage theory; innovation; Shanghai; groceries; food retailing; retailers; generic strategies; Michael Porter; Shelby Hunt; brand development; store observations; supermarkets; hypermarkets; convenience stores; discount stores; Chinese culture; Chinese management; China.

DOI: 10.1504/IJCCM.2012.046036

International Journal of Chinese Culture and Management, 2012 Vol.3 No.2, pp.139 - 159

Published online: 17 Dec 2014 *

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