Laws of the People's Republic of China

Ministry of Commerce

Circular of the Ministry of Commerce on the Implementation of the National Standard of Retail Format Classification

Shang Jian Fa [2004] No.390

August 9, 2004

The competent departments of commerce of all the provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the State plan:

The retail format shall refer to the different business forms that the retail enterprises take, after combining corresponding factors for satisfying different consuming requirement. In order to bring into play the promoting action of new-style retail format over the commodity circulation, and guide local authorities to do well the programming work of commercial network, the MOFCOM has organized the relevant entities to revise the former National Standard of Retail format Category (GB/T18106-2000) in accordance with the development tendency of China's retail industry in recent years and using for reference the classification mode of retail format in developed countries. The State Administration of Quality Supervision, Inspection and Quarantine and the Standardization Administration of China have jointly formulated the new national standard of Retail format Classification (GB/T18106-2004) (Approval Letter on Standard of SAC [2004] No. 102), and the new standard shall be implemented as of October 1, 2004. With a view of better carrying out the new standard, relevant issues are hereby notified as follows:

1.

The publicity work of the new classification standard of retail format shall be done well

The classification standard of retail format is the premise to scientifically regulate and lead the development of retail industry, and it is the important technical basis to form the commodity market pattern with reasonable structure, perfect function, clear layer and complete system. The new standard, according to the format characteristics of the retail store, and in accordance with its business mode, commodity structure, service function, and site selection, commercial circle, size, store's facility, target custom, store or non-store selling and other factors, classifies the retail industry into 17 formats and stipulates corresponding condition, which includes traditional grocery store, convenience store, discount store, supermarket, hypermarket, warehouse club, department store, specialty store, exclusive shop, home center, shopping center, factory outlets center, television shopping, mail order, store on network, vending machine, tele-shopping. This kind of classification mode accords with the development tendency of domestic and overseas retail industry. The competent departments of commerce in all places shall do well the publicity work of new standard so that, through special subject training, news publicity and other means, the governmental departments, enterprises and consumers can widely understand the formats and the classification condition of the new standard as well as the function of each format to lay a foundation for carrying out and implementing the new standard.

2.

The new standard shall be treated as important basis of programming work of commercial network

Retail format is the base to form rural commercial network. The new standard definitely defines the condition and function of the retail format, which shall be followed by all the local commercial departments to program the layout and format of the rural commercial network to make the network construction comply with the transformation tendency of the economic and social development and residential consumption and to make all the formats complement each other and develop harmoniously. The cities that have finished the program of rural commercial network already shall have the program revised and improved according to the new format standard. In the program, importance shall be attached to integrating the development of the new-style format and the upgrade and reconstruction of the traditional commerce and harmonizing between the key format and the special economy. Around the key point of format structure adjustment, development of the convenience store, discount store and small & medium supermarket that are convenient to the residential life shall be encouraged. Importance shall be attached to developing such new-style format as warehouse, specialty store and exclusive shop.

3.

The new standard shall be used to guide and regulate the direction of commercial investment

The competent departments of commerce in all places shall, on the basis of scientific analysis and full evaluation, use the new standard to guide the investment and operation in commercial fields. Through implementation of the new standard, the enterprises shall be made to understand thoroughly the establishment condition of each kind of retail format and the connotation thereof and to understand fully the operation discipline of each format, so as to promote the enterprises' rational investment, reduce unreasoning and repeated investment and avoid resource wasting; in light of the characteristics of different formats, differential operation shall be carried out to prevent out-of-order competition. Those who are eligible may, through dynamic tracing of the development situation of retail format, analyze and predict the development tendency of each retail format, formulate the catalogue of encouraging or restraining the format development and guide the investment of commercial enterprises so as to macro-control the layout of commercial network and the balance of the industrial format and to promote co-prosperity of multi-formats.

Annexed table: Retail format Classification and Basic Characteristics (Omitted)