Following confirmation of entry last November, Aldi has made the bold move of entering the Chinese market on Alibaba Group's B2C website, Tmall.
Focus on five categories
As communicated on Aldi's China corporate website, the Chinese offer spans five ambient categories: breakfast (17 SKUs), snacks (28 SKUs), wine (7 SKUs), organic (10 SKUs) and cooking (19 SKUs), with some lines merchandised across multiple categories. As anticipated, a significant proportion of the range is from Australia; two thirds of the range are products locally sourced in Australia. Aldi also offer its Chinese customers products from other continents such as North America and Europe, in order to provide an authentic offer.
Pricing and brand strategy
Prices on the online shop range from 19.90 CNY (2.67 EUR/ 2.32 GBP) for raisin snacks to 199.00 CNY (26.73 EUR/ 23.16 GBP) for a three litre tin of extra virgin olive oil.
Private label brands within Aldi's curated Chinese range include Moser Roth and Choceur (both chocolate), Just Organic, Forresters (nuts), Belmont (biscuits), Sweet Vine (dried fruit) and more. There are no branded lines in the range, with Aldi focusing on differentiating itself with its own brands at value prices, which it wants to be know for.
Aldi China managing director
Aldi China is headed up by Chris Schwaiger who has taken on the role of country managing director. Schwaiger has been with Aldi since 2006, working his way up across different markets. Talking about the new entry, he has said, "For decades Aldi's own brands have enjoyed the reputation of providing excellent value for money. We are convinced that Chinese customers are also very interested in the quality and the reasonable prices we can offer them."
Ogilvy & Mather Shanghai managing entry
Aldi has appointed WPP's brand agency Ogilvy & Mather Shanghai to manage its China entry. The agency will be responsible for creating Aldi's brand strategy as well as developing an integrated launch campaign and overseeing brand communications such as advertising and PR.
To better understand the China grocery market, click here to read our in-depth country report.
Priya Chandarana is a Retail Analyst at IGD, specialising in research on the growing discount channel. To learn more about how IGD's research can benefit your business further, please get in touch - [email protected]