ALDI wants to return to its original face in China?Low prices are the destination of supermarkets

Mondo Culture Updated on 2024-01-30

In the simplest supermarket market, a well-known international supermarket company is announcing a return to its original faceThis is the famous ALDI, as a synonym for cheap supermarkets in Germany, ALDI is finally going to return to its own low-price strategy, even ALDI has returned, is it that low prices are the real destination of supermarkets?

1. ALDI wants to return to its original face in China

According to Jiemian News, when you walk into ALDI's stores in China, you can see slogans everywhere that say "good quality, low price".

It's not quite what it used to do. After entering China in 2017, ALDI did not highlight its advantages, and some products were different from those of German stores, such as croissants and chocolates. At an industry conference in November 2021, Chen Yougang, Chairman of ALDI China, explained, "As a relatively systematic foreign-funded enterprise with relatively high compliance costs, ALDI is not the best way to compete in the Chinese market. ”

At that time, it aimed at the changes in China's consumption environment and retail market, when the consumption power of the middle class was gradually increasing, and the whole market was in the midst of a wave of consumption upgrading. Joining it is Alibaba's Hema launch, which has adopted a "new retail" model that connects online and offline, as well as dine-in services and other experiences, attracting many middle-class consumers. Kunpeng Project

Second, low prices are the destination of supermarkets

As a supermarket chain brand originating from Germany, ALDI is well-known worldwide for its unique business model and business philosophy. After entering the Chinese market, ALDI is facing the challenge of adapting to local consumption Xi and market competition, and now ALDI has begun to return to low prices

First of all, ALDI has always been known for providing cost-effective products in its home country of Germany and other markets around the world. This low-price strategy is not a simple price reduction, but a reduction in costs by streamlining product categories, reducing packaging and advertising expenses, optimizing chain management, etc., and directly converting these saved costs into consumer benefits - that is, lower**. Therefore, returning to the essence of its low-cost discount supermarket is actually a return to its core competitiveness for ALDI. Nowadays, Chinese consumers are becoming more and more rational, they no longer blindly pursue brand effect, but pay more attention to the value of the product itself. Therefore, for ALDI, returning to cost-effectiveness is not a regression, but an effective means to meet market demand and enhance competitiveness.

Secondly, in the Chinese market, ALDI once deviated from its original low-price strategy and turned to a more high-end, high-quality market positioning. This strategy did have some success in the early days, allowing ALDI to expand rapidly in the Chinese market. However, with the changes in China's consumer market, consumers are increasingly demanding cost-effective products. Against this backdrop, ALDI has also had to adjust its marketing strategy to meet the needs of the Chinese market.

At present, the entire Chinese consumer market is changing, and consumers' purchasing behaviors and needs are also constantly changing. With the improvement of information transparency, consumers can more easily compare the quality and quality of different products, which requires merchants to provide more cost-effective products and services. In this context, discount play has become popular in domestic supermarkets, and ALDI, as a world-renowned discount supermarket, naturally needs to follow the market trend and be prepared.

Thirdly, ALDI's advantage lies in its own product selection ability and chain management ability. In terms of product selection, ALDI strictly controls the types of products, and only selects high-quality products that have been carefully screened, so as to ensure the quality of the products. In terms of chain management, ALDI directly cooperates with merchants to reduce intermediate links and procurement costs, so that the quality of goods can be kept at a low level. These two advantages enable ALDI to provide high-quality and inexpensive products while also ensuring its profit margins.

Fourth, in the long run, it is undoubtedly an inevitable choice for the supermarket format to embark on a different road from the traditional discount. However, how to balance costs while ensuring profits is a problem that all supermarket companies need to face. On the one hand, supermarkets need to optimize the first chain, improve operational efficiency, and reduce unnecessary costsOn the other hand, supermarkets also need to continue to innovate and provide more diversified and personalized products and services to meet the growing needs of consumers.

Therefore, ALDI's return to the identity of a low-cost supermarket is an inevitable choice under the changing market environment in China. Only by insisting on the priority of cost performance and continuously improving our core competitiveness can we be invincible in China, a market full of challenges and opportunities.

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