Retailer-Supplier Relationship in Hong Kong: Asymmetry, Power Play, and the Need for Supply Chain Management

Matthew M Chew, Veon N.L. Sun


This study investigates the characteristics of retailer-supplier relationship in Hong Kong, identify problems in it, and suggest ways to remedy them. We will demonstrate that Hong Kong’s retail industry was and is dominated by small and medium sized retailers. However, small retailers in Hong Kong have not adopted new retail technologies to manage their supply chains. This situation is undermining the efficiency of Hong Kong’s retail industry as a whole. We suggest information system providers, the management of small retailers, and suppliers to take steps to improve supply chain efficiency for small retailers. Information system providers could help through designing affordable implementation and common modules. We recommend suppliers in Hong Kong to actively build network, cultivate trust, and equip them with advance information system. Small and medium sized retailers in Hong Kong need to invest in the required resources to implement retail information systems. The government of Hong Kong can play a supportive role as well through non-profit organizations and programs that target retail technology for small businesses.

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