Ni Hao Private Brands in China

Based in Daqing, China, QKL Stores is a leading regional supermarket chain company operating in Northeastern China. QKL Stores sells a broad selection of merchandise, including groceries, fresh food, and non-food items, through its retail supermarkets, hypermarkets and department stores; the company also has its own distribution centers that service its supermarkets. The company has 37 retail locations for an aggregate total of 156 sq. meters of store space. QKL Stores announced an update to its Private Brand products.

The management team at QKL continues to focus on the development of its Private Brands which enhance gross profit margin, distinguishes the retailer from its competitors, and improves the brand image of its stores among its growing base of customers.

QKL first sold its Private Brand products in May 2008 under the “Weixin”, “Weiyi”, “Weishu” and “Lvjiangkangyuan” labels. By the end of 2008, the Company had 169 Private Brand sku’s that generated approximately 2.5% of total sales during that year.

In June of 2009, the Company introduced the “QKL” brand, which emulates many well-known, major brands, sold at its stores but at prices that are typically lower by an average of 10%. At the end of 2009, the Company’s Private Brand operations had a total of 503 sku’s, generating 5% of total sales for that year.

In 2010, QKL began to centralize the manufacturing of its Private Brands with major manufacturers.

Mr. Zhuangyi Wang, Chairman and CEO, said, “With the existence of our new DC, we are now able to ensure that our private label brands are kept in stock at all times at our retail stores. Our private label business sells a wide array of items from far away locations that our customers really enjoy, including vinegar from the Shanxi Province, bedding materials from Nantong located in the Jiangsu Province, stainless steel accessories from Jieyang in the Guangzhou province and plastic products from Huangyan in the Zhejiang Province. We are encouraged with the development of our private label business and believe that the QKL’s private label operations will become a major driver of additional sales and margin growth over the next several years.”

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Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan). Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s. Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago. Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.