Bob Fregolle, chief executive officer of Global Sales, P&G, visited Hongqi Supermarket Chain’s headquarters in Chengdu, Sichuan Province recently. The sales of P&G’s products in Hongqi stores amounted to 132 million yuan in 2011, making it the largest distributor of P&G’s products in China’s southwestern regions.

 

Hongqi and P&G signed a cooperation agreement in 2011 so as to put greater efforts in promoting its products in Hongqi stores. They also focused on bringing medium- and high-end products and new products onto shelves, which will boost P&G’s improvement in sales and profits.

 

The cooperation benefited P&G a lot—Hongqi, with its 1,200 locations, can serve as both distributor and retailer and P&G can reduce its advertising costs by putting its products in Hongqi stores’ “golden places” for display.