Chinese food retailers' positioning strategies and the influence on their buying behaviour

Abstract

Purpose

The purpose of this paper is to investigate Chinese food retailers' positioning strategies. Specifically, retail segments and critical factors related to the nature of the food supplier relationships that may be influenced by the positioning strategies are investigated.

Design/methodology/approach

The retail markets in Guangzou and Chengdu are investigated. Data are collected by means of observation and survey and then combined in the analyses. Observational research (i.e. expert assessments) is conducted in 152 retail outlets in order to assess their positioning strategies. The purchasing managers in the same retail outlets are personally interviewed by means of structured questionnaires.

Findings

A three‐cluster solution for the positioning strategies is revealed: down‐market stores, middle‐range stores, and up‐market stores. The annual sales and the number of self‐service counters are highest among up‐market retailers. They are also typically joint ventures, supermarkets and department stores, and members of a retail chain. A broad range of brands and products and also marketing support from the suppliers are most important for the up‐market stores.

Research limitations/implications

The study is limited to two regional retail markets and should therefore be cross‐validated with other retail sectors and markets. Thumbnail sketches of the retailer segments enable food suppliers to make better and more informed decisions about how to position their product offer and marketing mix.

Originality/value

Although positioning strategies are at the core of modern marketing, relatively little research has been conducted addressing how retailers in general and Chinese retailers specifically include their retail buying behaviour and structural characteristics in the positioning strategy. This study contributes to filling this gap in knowledge.

Citation

Skallerud, K. and Grønhaug, K. (2010), "Chinese food retailers' positioning strategies and the influence on their buying behaviour", Asia Pacific Journal of Marketing and Logistics, Vol. 22 No. 2, pp. 196-209. https://doi.org/10.1108/13555851011026944