Retailers In China Research Articles

Driving Forces behind Regional Retail Network and Thoughts on Innovative Development

The past decade of innovation in the retailing industry has formed a general framework for regional retailing in China. Such achievement is a result of reckless efforts and the nature of business. This paper focuses on future regional retailing based on the motivation behind the existing regional retailing network and proposes suggestions in terms of market positioning, competitiveness, regional alliance, and technical support.

The Value of Own Delivery Service by Online Retailers in Emerging Markets

Why do online retailers go beyond their core business of retailing to offer own delivery service in emerging markets? In this paper, we argue that using own delivery service, online retailers can build trust among their customers, which is critical for retailers in emerging markets. We empirically test this theory using the quasi-experimental data on 250,055 customers’ transactions, over ten years, across 416 cities, and 49 product categories from JD.com, the largest online direct sales retailer in China. Based on difference-in-differences models, we find that individual customers’ monthly spending increases by 7.7%, purchase frequency by 3.7%, and the number of items purchased by 9.1% due to own delivery service. We find evidence that own delivery service builds customers’ trust in the retailer’s business, especially for infrequent buyers, from low commercial credit cities, and product categories with higher uncertainty. These findings suggest that, different from the light asset online retail model in developed markets, in emerging markets the heavy asset self-ownership and integrated service model can be an effective business model.

Motives behind retailers’ post-entry expansion - Evidence from the Chinese luxury fashion market

This study aims to examine the motives behind retailers’ post-entry expansion in foreign markets. Through case studies of eleven participating luxury fashion retailers in China, qualitative data was collected from twenty-two executive interviews. Although their initial market entry was driven by both reactive (push) and proactive (pull) factors, the motives behind their post-entry expansion have become predominantly proactive, especially long-term growth strategies, the ambition to extend their brands and retail formats to more cities, and the experiences gained in entry markets. The desire to optimize the retail store portfolio through multiple channel strategies have slowed down the expansions of physical stores.

What is the Price of Tea in China? Goods Prices and Availability in Chinese Cities

Abstract We examine the price and variety of a sample of consumer goods at the barcode level in cities within China. Unlike the position in the United States, in China the prices of goods tend to be lower in larger cities. We explain that difference between the countries by the more uneven spatial distribution of manufacturers’ sales and retailers in China, and we confirm the pro-competitive effect of city size on reducing markups there. In both countries, there is a greater variety of goods in larger cities, but that effect is more pronounced in China. Combining the lower prices and greater variety, the price indexes in China for the goods we study fall with city size by around seven times more than in the United States.

An integrated modeling method for collaborative vehicle routing: Facilitating the unmanned micro warehouse pattern in new retail

This study focuses on horizontal collaboration and addresses a collaborative multi-center vehicle routing problem (CMCVRP) deriving from the unmanned micro warehouse pattern in new retail in China. In the CMCVRP, suppliers form a coalition to reduce their operating costs and improve service levels. Traditional approaches cannot coordinate the interests of all decision subjects in this process. To fill this gap, an integrated modeling method is proposed considering the objectives at both coalition and partner levels. In the model, two constraints are presented to guarantee the interests of all decision subjects. The constraint at the coalition level defines the acceptable region of solutions to ensure the efficiency of the coalition. And the constraint at the partner level limits the difference among partners' benefits to avoid excessive profit imbalance in the alliance. After that, a metaheuristic algorithm called the non-dominated sorting genetic algorithm-large neighborhood search is proposed to solve the model. Numerical experiments are conducted on thirty instances with three kinds of logistics networks, and the integrated method is compared with an existing approach (centralized method). The results show that the integrated method has a better performance to coordinate the benefits of all decision-makers when forming the coalition than the centralized method. Also, the impact of the network structures in the collaboration on the performance of the integrated method is investigated, and the conclusions can provide guidance for suppliers to choose their cooperators.

THE IMPACT OF THE DEVELOPMENT OF THE DIGITAL ECONOMY ON RETAIL TRADE ENTERPRISES IN CHINA

After the international financial crisis, the world economy has entered a new stage of profound transformation. Against the backdrop of global penetration, cross-border integration, accelerated innovation and priority development, China's digital economy has made significant progress. High innovation of the digital economy will accelerate the penetration and integration of related industries, will form new models and new forms of business, will help optimize the structural structure of the economy of a country and the world. Retail is the closest commercial form of human livelihood, is an important driver of economic growth. In recent years, thanks to the rapid popularization of the mobile Internet, access to large data sets and other new technologies, retail has grown rapidly. This research examines the relationship, features of operation, and prospects for the development of the digital economy and retail in China. New models, forms of business, such as Internet road transport, e-commerce, Internet finance and intelligent logistics, have been formed to promote the development of services. Under the influence of the Internet, retail trade has undergone great changes: the convenience and intelligence of retail terminals have been improved, and the variety of retail services has been enriched. The Research Development Institute identifies six aspects of China's digital economy development: infrastructure, integrated programs, enterprise transformation, public administration transformation, regional development and digital governance. E-commerce companies should be encouraged to develop their own brand, strengthen cooperation with traditional retailers, which already have their own permanent reputation, a well-known brand. At the same time, appropriate platforms for business expansion in rural areas and international markets should be supported. In China, in today's business environment, the digitalization of the economy is the main vector of movement. Many relevant measures have been implemented in the country, especially in the retail sector, which require scientific support in the future.

A case-based reasoning approach to solve the vehicle routing problem with time windows and drivers’ experience

In last-mile delivery, on-line retailers deliver goods from local distribution centers to endpoint customers using a fleet of vehicles. This problem is often related to vehicle routing problems with time windows (VRPTWs) in the literature. For an on-line retailer in China, it was found that experienced drivers could often find better routes rather than relying on computerized tools using state-of-the-art algorithms. Therefore, the focus of this paper is to generate routes based on experience. To do so, we propose a methodology based on case base reasoning (CBR). The methodology designs new routes to fulfill orders by retrieving and adapting routes previously performed from a repository named case base. A mechanism is also developed to maintain good quality routes in the case base. The methodology is first tested on problem instances generated using a construction heuristic. Other tests are also performed using real data from an on-line retailer in China. Results show that the CBR methodology designed can effectively generate routes to solve new problems similar to routes previously performed. A comparison to the BoneRoute algorithm show that the solutions obtained with CBR are in average 18.4% longer. However, this result does not take into consideration the time required by the drivers to adapt to a very different route.

Research on the Impact of New Retail Consumer Experience on Purchase Behavior

The new retail is a new exploration of the transformation and upgrading of China's retail industry, through the consumer perspective to study the influence of the new retail consumer experience on consumer behavior. Enhance the consumer experience and satisfy consumers' perceived value. In this study, extensive research on existing research has provided a new understanding and management basis for companies to improve consumer satisfaction, and merged their findings into a new retail consumer experience shopping model. The model describes how to increase purchasing power in a new retail environment.

Consumers' perceptions and responses towards online retailers' CSR

PurposeAnchored on social trust theory, social identity theory and signalling theory, this study investigates the process of how consumers respond to online retailers' corporate social responsibility (CSR).Design/methodology/approachFollowing the hypo-deductive research design, a unique model was developed to link online retailers' CSR with consumer purchase intention through brand identification and word of mouth (WOM). This model was subsequently tested and validated by conducting an online survey to 239 customers of a major online retailer in China, that is, JD.com.FindingsAnalysis using structural equation modelling demonstrates that online retailers' CSR is positively associated with consumer purchase intention, and brand identification positively mediates such an association. In addition, WOM exhibits a mediating effect on the relationship between perceived online retailers' CSR and consumer purchase intention and between brand identification and consumer purchase intention.Practical implicationsOnline retailers must endeavour to employ CSR as a strategy to enhance consumer purchase intention and behaviour. Moreover, they should develop communication programmes that highlight their engagement in CSR activities to improve their brand image and facilitate consumers' positive WOM.Originality/valueTo the best of the researchers' knowledge, this study is the first to examine the mediating roles of brand identification and WOM in the relationship between online retailers' CSR and customer purchase intention. Furthermore, this study extends current knowledge about online retailers' CSR and its potential impact in emerging economies by focussing on the context of China.

Research on the development and innovation of retail trade in China

China's retail industry is developing well, and strong market demand also provides a great guarantee for its development. In the new era, effective innovation is needed in the development of the retail industry, which has been a basic choice. In recent years, the retail industry has been innovating in development, and has achieved some good results. However, the development and innovation of the retail industry will be affected and restricted by various factors. Under such influence, many problems are likely to appear in the development and innovation of the retail industry, which increases the degree of responsibility of both. This article will specifically analyze the problems in retail development and innovation, and put forward more effective development and innovation countermeasures.

Robust purchase and sale transactions optimization strategy for electricity retailers with energy storage system considering two-stage demand response

A new two-stage demand response is designed for the electricity retailers with energy storage system (ESS-ER) in the deregulated power market. The ESS-ER could response to the output of different power sources by adjusting the charging-discharging behavior according to the bidding power price. The paper models the two-stage demand response for electric power retailers and proposed a two-layer coordinated optimal model for the purchase and sale of the electric power retailers. In the upper layer model, the conditional value at risk method and robust stochastic theory are applied to describe the uncertainty influence of wind power and Photovoltaic (PV) power, and the minimum whole cost of power purchasing is taken as the objective. In the lower-layer, the power consumption behaviors of different customers are considered to get the maximum revenue of power selling by implementing differentiated demand response. Then, to solve the two-layer mathematical model, the lower-layer model is converted into the Karush-Kuhn-Tucker (KKT) optimality conditions. The results show that: (1) The two-stage demand response could smooth the curves of power purchasing and terminal users’ load, which could bring more flexible transaction space. (2) The proposed two-layer transaction model could balance the cost and risk of power purchasing, bringing more trading opportunities for wind power and PV, which can also reduce the energy consumption cost of the end-users. (3) By introducing the risk cost coefficient, confidence degree and robust coefficient, the decision-makers can adjust the power trading behaviors, and establish the optimal power trading scheme in line with their expected situation. (4) When higher energy storage capacity is set, the efficiency of demand response rises. When the capacity ratio of wind to energy storage is 4:1, the efficiency of demand response reaches the best. When larger energy storage capacity is set, the demand response turns to be more effective. However, when the capacity ratio of wind and PV to energy storage is 4:1, the effect of demand response reaches the best. Overall, the proposed model could provide an effective tool for power retailers in China's electric power market.

Multilocation Newsvendor Problem: Centralization and Inventory Pooling

We study a multilocation newsvendor model with a retailer owning multiple retail stores, each of which is operated by a manager who decides the order quantity for filling random customer demand of a product. Store managers and the retailer are all risk averse, but managers are more risk averse than the retailer. We adopt conditional value-at-risk (CVaR) as the performance measure and consider two alternative strategies to improve the system’s performance. First, the retailer centralizes the ordering decisions. Second, managers still decide the order quantity for their own store, whereas their inventories are pooled together. We analyze and compare the optimal order quantities and the resultant CVaR values of the systems and study their comparative statistics. For centralization, we find that each store has a higher inventory level in the centralized system than in the decentralized system, and centralization positively benefits the retailer as long as some store managers are strictly more risk averse than the retailer. When there is inventory pooling, the ordering decisions in the decentralized system depend on how the additional profit from pooling is allocated among the stores. We consider a weighted proportional allocation rule and characterize the Nash equilibrium of the resultant ordering game among the store managers. Our key finding is that as long as the store managers are sufficiently more risk averse than the retailer or the demands are very heavy tailed, inventory pooling is less beneficial than centralization. We further derive a lower bound on the value of centralization and two upper bounds on the value of inventory pooling. Finally, our analytical results are illustrated using a data set from an online retailer in China, and various comparative statics are further examined via extensive numerical experiments. This paper was accepted by Charles Corbett, operations management.

Environmental Consciousness and Organic Food Purchase Intention: A Moderated Mediation Model of Perceived Food Quality and Price Sensitivity.

As purchase power and consumption knowledge increase, consumers gradually demand safer and healthier products. In addition, consumers focus greater attention on organic food. This study investigates the relationship between environmental consciousness and organic food purchase intention with the mediating roles of perceived food quality and price sensitivity. The objective is to shed new light on our understanding of consumers’ perceptions and behavioral intentions toward organic food. Using sample data of 518 consumers in different food retailers in China, empirical results show that environmental consciousness has a positive impact on organic food purchase intention. Perceived food quality has a mediating effect on the link between environmental consciousness and organic food purchase intention. Price sensitivity moderates the relationship between perceived food quality and organic food purchase intention. Furthermore, price sensitivity moderates the indirect effect of environmental consciousness on organic food purchase intention through perceived food quality.

Fostering supply chain integration in omni-channel retailing through human resource factors: empirical study in China’s market

ABSTRACT This study aims to identify relationships between human resource practice (HRP), human capital (HC), and supply chain integration (SCI) in the context of omni-channel retailing (OCR) on the basis of dynamic capability view (DCV). It also applies firms’ characteristics as moderators and uses product variety as a control variable to examine their effects on these relationships. A research survey was conducted based on a sample of 230 omni-channel (OC) retailers in China’s market. The results reveal that HRP is positively related to HC and that HC has a positive impact on SCI in the context of OCR. Moreover, employees’ capital is more important for SCI’s success than managers’ capital for OC retailers. In addition, this study found that product variety has a positive effect on SCI, whereas the moderating effect of retailers’ characteristics is insignificant compared to the influence of HRP on HC.

A Study on Strategies of Multinational Bakery Retailers in China : Focused on Paris Baguette and Competitors

A Study on Strategies of Multinational Bakery Retailers in China : Focused on Paris Baguette and Competitors

The Pricing Strategies of Unsecured Consumer Loans

This paper analyzes lenders' pricing strategies in the business-to-customer (B2C) unsecured loan market by using a proprietary dataset of approximately 3 million unsecured consumer loans from a B2C online retailer in China. We find that lenders' decisions to invite customers are based on customers' credit rating and age and that lenders increase credit limits and charge higher interest rates for solicited riskier borrowers than for unsolicited riskier borrowers. This phenomenon was exacerbated after the passage of the China Banking Regulatory Commission (CBRC) Act. We develop a model of revolving credit contract design. The model's predictions are consistent with our empirical findings.

Supply chain integration in omni-channel retailing: a human resource management perspective

PurposeThe purpose of this paper is to apply the dynamic capability view to identify relationships between human capital (HC), supply chain integration (SCI) and firm’s performance. It also examines the moderating effect of product variety (PV) on these relationships in the context of omni-channel retailing (OCR).Design/methodology/approachAn empirical study was conducted based on survey research. In total, 230 retailers in China’s market adopting omni-channel strategy were surveyed to examine the hypotheses proposed in our conceptual model using statistical techniques.FindingsThis study reveals that HC has a positive impact on SCI, and the impact of employees’ capital is greater on the success of SCI than that of managers’ capital. Moreover, the results confirm that SCI facilitates the achievement of superior performance. Organization integration contributes the most to performance improvement in OCR. Additionally, this study identifies the positive moderating effect of PV on the relationship between HC and SCI, while the moderating effect is insignificant to the influence of SCI on performance.Research limitations/implicationsWe obtained valuable insights for both academicians and practitioners. On the one hand, this could be an early attempt as an interdisciplinary study to empirically analyze supply chain management in OCR from human resource perspective. It reveals the importance of human resource management (HRM) and the contribution of SCI to OC retailers. Therefore, this study fills current research gaps. On the other hand, this study provides several practical insights to top management: the importance of improving an individual’s competency to sustain a retailer’s dynamic capability; and the importance of strengthening the organization’s integration to better achieve effective SCI in OCR. Additionally, this study proposes future research based on its limitations.Originality/valueSCI is investigated in the context of OCR from the HRM perspective. Moreover, this study reveals the importance of HRM and discusses the moderator’s effect in OCR.

Trading risk control model of electricity retailers in multi‐level power market of China

AbstractThe decision‐making and risk assessment of electricity purchase and sales is the key to adapt to the electricity market for independent electricity retailers in China. This research carried out the purchase and sales risks of electricity for electricity retailers and constructed the multi‐level market purchase and sales combination optimization model. Based on the portfolio optimization theory, the conditional value at risk theory (CVaR) was proposed. Based on the evaluation index about the conditional risk profit and CVaR, electricity retailers purchase and sales combined optimization model has been constructed to explore the impact of purchase and sales risks by different factors in multi‐level electricity market. The example analysis was carried out by the fixed spread mode and the linkage spread mode. The results showed that the mathematical mean and variance of market spread had great influence on the electricity purchase and sales combination. Especially in the mature electricity market, the mathematical mean of spread and risk in medium‐ and long‐term market was smaller than that in spot market, and the best point of the electricity purchase and sales combination was shown on the smallest value of CVaR, while the electricity purchase and sales combination was optimal under limited conditions.

Characterization and discrimination of selected chicken eggs in China's retail market based on multi-element and lipidomics analysis.

The present study focuses on the differentiation of Deqingyuan (n = 90), Taihe (n = 90) and crossbred (n = 90) black-boned silky fowl eggs based on chemometrics analysis of multi-element and lipidomics data. A total of 53 chemical elements were simultaneously quantified in the eggs using inductively coupled plasma mass spectrometry. Multivariate statistical analysis of element data screened 30, 13 and 12 candidate discriminants for whole egg, egg yolk and egg white samples, respectively. Moreover, we utilized an LC-MS/MS-based lipidomics approach to profile lipids in the three types of egg yolks. In total, 1633 lipid species (including 43.78% glycerophospholipids, 25.66% glycerolipids, 16.66% fatty acyls, 6.86% sphingolipids, 4.10% sterol lipids, 1.53% polyketides, 1.10% prenol lipids and 0.31% saccharolipids) were consistently detected in all samples. A partial least squares discriminant analysis model was established based on the lipidomics data, which enables a 100% correct classification of the egg yolks. Using a cutoff of variable importance in projection value >1 and p value <.05, a panel of 22 potential lipid markers was discovered for the discrimination of Deqingyuan, Taihe and crossbred egg yolks. These results could facilitate a better understanding of the nutritional qualities of the evaluated eggs. Our method of combining chemical analysis with chemometrics offers a convenient and powerful tool to distinguish commercially-available eggs.

A study of lifestyle fashion retailing in China

PurposeThe purpose of this paper to examine how Chinese consumers’ perceived functional and symbolic values of lifestyle fashion stores (i.e. merchandise quality, price, convenience, emotional value, aesthetic value and social value) affect their shopping behaviors (i.e. repurchase intention (RI), impulse buying (IB) and time spent (TS)).Design/methodology/approachIn total, 223 eligible responses were collected via an online questionnaire survey. The psychometric properties of the proposed CPV-shopping behavior research model were examined, and the multiple regression method was applied to test the hypotheses.FindingsThe findings show that Chinese consumers’ RIs toward and TS in lifestyle fashion stores are determined by their perceived merchandise quality value, price value, emotional value and aesthetic value of lifestyle fashion stores. In contrast, Chinese consumers’ perceived price value and emotional value trigger their IB in the lifestyle fashion stores. The perceived values show satisfactory explanatory power for the variances of Chinese consumers’ shopping behaviors (R2=55, 50 and 49 percent for RI, IB and TS, respectively).Originality/valueA better understanding of the Chinese consumers’ shopping behaviors toward emerging lifestyle fashion stores may assist retailers in targeting China as the soon-to-be largest consumer market.