Aldi opens online shop in China
The event was full of entertainment with the gentle-voiced and incredibly popular, local singer Chen Kun being recruited for the occasion and the audience also being treated to a fashion show.
Aldi may only be selling a limited assortment of wine, snacks, and a variety of breakfast and organic food products in the first instance, but it is tapping into a real need for quality international food brands. This is especially the case after a succession of high-profile food scandals, including baby food, have undermined consumer trust in many local products.
This is clearly why Aldi's new web shop (www.aldi.com.cn) provides copious information on product integrity and traceability and encourages consumers to discuss and recommend its products.
China's e-commerce market is already the largest in the world. According to Shirley Zhu, Asian Programme Director at international grocery research organisation IGD, online is set to more than double its share of the national grocery market to 6.6 per cent by 2020. Ms Zhu points to growing internet and smartphone usage as well as changing demographics: "There is a rising population of young middle-class shoppers leading busier lives."
Aldi answered questions at the event about their decision to enter the Chinese market and their new webshop:
Your online shop currently offers around 100 food lines. Presumably you will be extending the assortment?
Yes, we most definitely intend to grow our assortment in order to cater better to the needs of our customers. Baby food, for instance, would be high on our list. Fresh produce is one of the many other possibilities we are obviously considering.
Why go to China when the Indian online market is growing faster?
Obviously we look at a lot of countries, and both markets are interesting, but China is more developed. The People's Republic has been growing steadily for around 25 years, and that growth looks set to continue. Also, one should not forget that the Chinese middle class is eight times bigger than in India.
Why is the Chinese online segment so attractive?
China has its own unique "ecosystem", which will provide us with excellent potential for development. There is huge customer interest in high-quality food that can be sold online. Aldi can reach these customers with the help of our local partner Tmall Global.
Do you intend to remain a purely e-commerce retailer in China, or could you build a physical store network somewhere down the line?
We still haven't made any decision on any further steps we might take. That said, however, there is nothing which we would exclude on principle.
source: german-retail-blog.com
