Third, human resources. This aspect may still be in the process of being honed and developed for Aldi. As of now, an average Aldi store with an area of 600 square meters requires about 20 employees, with an average list of latvia whatsapp phone numbers monthly salary of about 7,000 yuan. Cultivating more outstanding store managers, on-site bakers, site developers, etc. is not only a long-term project that can be stopped for Aldi, but also for any retail enterprise.
Fourth, cost reduction. This is worth saying more about Aldi. As mentioned above, in 2024, Aldi has polished the label of "supermarket for the poor" that has been worn for a hundred years to the extreme in the Chinese market. However, the location of Aldi's stores is not at all poor. Up to now, almost all of Aldi's stores are located in shopping malls or shopping centers. Half of them are on the street-facing properties on the first floor, and the other half are on the basement floor of B1. In other words, the pricing of Aldi's products seems to be priced to the extreme "poor". But the location of Aldi's stores and the customers it aims to attract are not necessarily poor people.
With the summary of the above four conditions, we will find that the proposition of Aldi moving out of Shanghai is not to stay in Shanghai for 5 years after entering China, but to significantly cultivate comprehensive strength close to moving out of Shanghai within one year by 2024.
ALDI's 10 Years in China
In fact, Aldi does things very "slowly".
Slow is even the stereotype that Germans have created for people all over the world. When describing the way Germans do things, they are often easily reminded of the adjectives that people outside of the world would think of: logical, stubborn, meticulous, and taciturn.
How slow is Aldi?
In 2014, Christoph Schwaiger, as the first CEO of Aldi China, began to visit more than 40 cities and retail peers in China.
It was not until 2017 that Aldi began to test the responsiveness of the domestic market through cross-border imports via Tmall Global.
In 2019, Aldi opened its first stores in Jing'an and Minhang districts of Shanghai.
2024 is actually the first year of Aldi's comprehensive transformation, which is the 9.9 yuan, hard discounts, and comprehensive private brands mentioned at the beginning of the transformation. In other words, the past four years of physical store experience is still the "internship period" of Aldi's China business.
This slow pace, according to Aldi, is called "low-risk store expansion."
Shanghai is the largest city in China, and it is said that the price level of this city ranks fourth in the world. In order to let Shanghai citizens feel the price power, Aldi uses the private brand strategy. But behind the price power, there is more than just the private brand.
