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Supplier‐retailer relationships in China's distribution channel for foreign brand apparel

Supplier‐retailer relationships in China's distribution channel for foreign brand apparel This study investigated how Chinese retailers perceive their foreign brand apparel suppliers and explored the use of power theory for explaining these relationships. A survey of 150 apparel retailers operating in Beijing, China provided data for the study. Referent power positively influenced retailers' attitudes toward and non‐economic satisfaction with their suppliers. Greater referent power also reduced channel conflict and enhanced economic satisfaction with business performance. The importance of this source of power seems to be linked with the concept of guanxi in China, where respectful relationships are valued. Coercive threats to withhold necessary merchandise, service, or contracts increased channel conflict. Surprisingly, greater channel conflict was associated with increased economic satisfaction with business performance. This relationship is contemplated from a cultural perspective and recommendations are made to foreign brand apparel manufacturers wishing to access China's retail market. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Fashion Marketing and Management Emerald Publishing

Supplier‐retailer relationships in China's distribution channel for foreign brand apparel

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Publisher
Emerald Publishing
Copyright
Copyright © 2004 Emerald Group Publishing Limited. All rights reserved.
ISSN
1361-2026
DOI
10.1108/13612020410537898
Publisher site
See Article on Publisher Site

Abstract

This study investigated how Chinese retailers perceive their foreign brand apparel suppliers and explored the use of power theory for explaining these relationships. A survey of 150 apparel retailers operating in Beijing, China provided data for the study. Referent power positively influenced retailers' attitudes toward and non‐economic satisfaction with their suppliers. Greater referent power also reduced channel conflict and enhanced economic satisfaction with business performance. The importance of this source of power seems to be linked with the concept of guanxi in China, where respectful relationships are valued. Coercive threats to withhold necessary merchandise, service, or contracts increased channel conflict. Surprisingly, greater channel conflict was associated with increased economic satisfaction with business performance. This relationship is contemplated from a cultural perspective and recommendations are made to foreign brand apparel manufacturers wishing to access China's retail market.

Journal

Journal of Fashion Marketing and ManagementEmerald Publishing

Published: Jun 1, 2004

Keywords: China; Distribution channels; Retailers; Suppliers

References