Zhongbai Wants to Expand and Gain More Market Share

Wang Aiqun, president of Wuhan Zhongbai Group, has got the biggest benefit as a deputy to the National People s Congress in the delegation of Hubei Province. He proposed in a meeting that Wuhan be removed from the name of his company or China be added to it, a measure which would help build its chain business across various regions. To Wang s surprise, Zhou Bohua, Minister of State Administration for Industry & Commerce, gave him a positive response.

The change of name will increase the value of Zhongbai s intangible assets, said Wang Aiqun in a telephone interview with a reporter from CBN on the evening of March 7. However, he also admitted that the company should rely on itself to increase its competitiveness and market share.

In a mature retail market, just one supermarket chain can take about 70% of the total market. For example, Wal-Mart s market share in the US has reached 68% in the industry. But it is another story in China. There are only two companies, CR Vanguard and Lianhua Supermarket, which have over 10% market share, and the top four retailers account for less than 40% of the market. It means that Zhongbai still has a lot of room for further development.