Aldi in China: Strategic Lessons for International Companies 1

Introduction

I would like to use Aldi as a case study because its development in China offers an interesting example of how an international company can adapt its business model to one of the world's most competitive consumer markets.

My interest is also personal. There is an Aldi supermarket about 500 metres from my home, and it has become the supermarket I visit most frequently for daily groceries. Around 45% of my total food spending is currently made at Aldi, with approximately one-third of my Aldi spending taking place through its online channels. The remaining 55% of my food expenditure comes mainly from local online shopping platforms.

This is quite different from my earlier experience with Aldi overseas. Many years ago, when I lived abroad, I visited Aldi and was not particularly impressed by the product quality, I did not return after my first visit.

Therefore, when Aldi opened a store near my home in Shanghai in 2021, I was initially skeptical about its prospects. At the time, several foreign-owned supermarket chains had struggled to adapt to China's rapidly changing retail environment, particularly the rise of e-commerce and increasingly digital consumer behaviour. Competition was intense, consumers were highly price-sensitive, and the market was also experiencing economic uncertainty associated with the pandemic and its aftermath.

Against this backdrop, a natural question arises:

How has Aldi managed to expand in China while many other international supermarket operators have struggled to maintain their position?

The scale of Aldi's recent expansion is notable. Aldi opened its first physical stores in Shanghai in 2019 and remained concentrated in Shanghai for several years before expanding into Jiangsu Province in 2025. By March 2026, Aldi China had reached 100 stores, including 74 in Shanghai and 26 in Jiangsu.

This expansion is particularly interesting because China's supermarket sector remains highly competitive. The China Chain-Store & Franchise Association (CCFA, 2025) reported that discount stores and membership-based retailers continued to show significant growth in 2024, while the overall number of stores operated by China's Top 100 supermarket companies declined. Aldi's expansion therefore needs to be viewed within a broader market environment in which retailers are under pressure to improve both operating efficiency and customer attraction?

Aldi's experience in China therefore raises a broader question for international companies:

What can Aldi's experience teach international companies about adapting a proven global business model to the Chinese market?

The answer is unlikely to be simply the strength of the Aldi brand. Its progress in China suggests that the company's ability to adapt its supply chain, digital operations, product offering, and customer acquisition approach to local market conditions may be equally important.

This article examines Aldi's development in China from three perspectives: what is happening in the market, why Aldi's approach appears to be working, and what international companies can learn from its experience.

Table of Contents

Introduction

Market Understanding / What Is Happening?

1. Why Are Foreign-Owned Supermarkets Struggling in China?

2. Why Is Competition So Intense in China’s Supermarket Market?

3. How Has Aldi Built Its Position in China?

Market Interpretation / Why Is Aldi Succeeding in China?

1. A Globalised but Localised Supply Chain

2. Embracing Digitalisation

3. Customer Traffic

Final Perspective-What Can International Companies Learn from Aldi's Experience in China?

Final Strategic Insight