In a bid to exercise stricter control over product quality and lower coordination and transaction costs, supermarkets are moving towards centralised purchasing systems under which central buying offices will source goods in bulk. Goods will then be distributed through a network of sales centres to various shops.
For products that have not been handled before, newly-developed products with new functions and new features, products provided by new suppliers, and products with new brands, supermarkets usually have a mechanism for handling these new products:
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The products are usually sold on trial for three months.
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During the trial period, the sales personnel will monitor the display, stock, sales, quality and sales promotion of the new product.
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Decision on whether to introduce the new product will be made after the trial period based on the sales performance and other factors. If the trial sale is successful, a formal agreement will be signed. If the sales results are not satisfactory, either the trial period will be extended or the supplier will be notified that the product will be phased out.
