Aldi looks to expand presence in China

German retailer Aldi is looking to secure steady growth in the China market by rolling out localized products and various private labels to meet the needs of Chinese consumers, a senior executive of the company said recently.

"This year, Chinese consumers have become more rational. They are very concerned about value and where their money is spent, and not lowering their requirements for quality. This is an opportunity for Aldi," said Roman Rasinger, managing director of China with German retailer Aldi.

According to Rasinger, Aldi will continue to strengthen its presence in the Chinese market through measures like accelerating the introduction of products specially tailored to the Chinese market and increasing collaboration with local suppliers.

"Over 80 percent of the products are directly sourced from local suppliers in China, further empowering the development of local suppliers. This proportion is enough to make us seen as a highly localized company," said Rasinger.

Aldi has been constantly increasing the proportion of its private-label products, which currently stands at about 90 percent.

"The reason why Aldi wants to develop its private labels is that they can bring more value to consumers. For example, private-label brands can lower buying cost through economies of scale, reduce unnecessary processes and intermediate links, and bring more competitive prices to consumers," he explained.

Regarding organic growth, the retailer is planning to open stores in the coming year.

"Looking ahead, we will continue to increase our focus on the China market, steadily expand our presence, and work together with local supplier partners to create a win-win situation and help the entire retail industry flourish," Rasinger said.

Founded in 1913 in Germany, Aldi currently operates 52 stores in China.