Structural changes in China’s distribution system

One of the essential components of China’s economic open door policy is the reform in its distribution system. So far the distribution reform has transformed China’s distribution system from being non‐responsive and supply‐driven to increasingly responsive and market‐ driven and the nature of exchange relationships among channel members has also changed. Consequently, the China market has become more accessible. This paper reviews a series of distribution reform programs and the emerging trends, highlights major changes in China’s distribution system, identifies the unresolved marketing and administration issues, and assesses their implications for the design of channel strategy, market entry strategy, and effective channel management in China.