Aldi enters the Chinese market
Aldi Sud has revealed it will open stores in China, with the first one opening on the 7th of June in Shanghai. China will become the 11th market where Aldi Sud operates standalone stores, strengthening its position as a global retailer. This announcement comes just weeks after Lidl closed its online operations in the country.
In 2017, Aldi opened its e-commerce platform on Alibaba’s Tmall Global where it sells both grocery and non-grocery products. The online shop was an efficient way to boost the understanding of local shoppers with limited investments. It acted as a feasibility study that has led to its decision to launch its first bricks-and-mortar store in the country next week, informs IGD Asia.
The discounter plans to open 10 stores in the short term with an objective of 50 to 100 store openings in the medium term to ensure economic viability. The stores will have a more upmarket position in China than in other markets due to the imported European products. The online grocery offer, which included organic food and imported products proved popular amongst Chinese shoppers and has helped to build a more premium image and brand.
It is expected Aldi Sud will offer products imported from Europe with high-quality perception such as health and beauty, dairy and organic. It will target aspirational shoppers, particularly those who desire western products at a more affordable price.
By opening stores in China, Aldi Sud strengthens its position as a global retailer with a presence in 11 different markets. It also confirms that it is ahead of its competitor, Lidl, when it comes to developments outside of Europe with the US being one of the most successful and fastest growing markets for Aldi Sud.
In Australia, the retailer continues to experience double-digit growth which is strengthening its position as one of the major retailers in the market. The strong presence of Aldi Sud in Australia could be a strategic opportunity for future developments in China. The discounter could use the experience of its Australian suppliers exporting to the Chinese market to ensure the success of these new operations.
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