HK retailer taps Burnett for China

GUANGZHOU: Hong Kong-based China Resources Enterprise has tapped Leo Burnett to work on its two supermarket brands in China amid aggressive expansion by foreign retail giants Wal-Mart and Carrefour.

The assignment covers China Resources Vanguard and China Resources, and comes as the company prepares its mainland expansion strategy for the next three years. The plan calls for China Resources to operate 400 traditional supermarkets, 50 hypermarkets, 190 superstores and 180 discount stores by 2006.

The brief includes development of a brand and visual identity, positioning, and formulating communication strategies for the brands. Burnett national operations director Benjamin Tsang said a campaign would follow in the second half of this year.

China Resources Vanguard, a three-year-old joint venture with local supermarket chain China Vanguard has a strong presence in Shenzhen, while China Resources runs a network of outlets under its own name in Guangzhou, Shanghai and Beijing.

Both brands target young, educated and high-income demographic groups.

Tsang, said that the group was strong in the eastern and southern parts of China, especially Guangdong and Jiangsu provinces.

The two brands previously handled their communications needs inhouse.

The media account has yet to be decided.

It is understood that Ogilvy & Mather, Bates and Grey also pitched for the business.

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