Why Is Aldi Succeeding in China? 1

Introduction

Before the story begins,
I’d like to show you a market picture.

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.

This differed from my earlier experience with Aldi overseas. So I was initially skeptical when Aldi opened a store near my home in Shanghai in 2021.

At the time, several foreign-owned supermarket chains had struggled to adapt to China's rapidly changing retail environment, particularly the growth of e-commerce and digitally enabled shopping. Competition was intense, consumers were price-sensitive, and the market remained uncertain after the pandemic.

Against this backdrop, a natural question arises:

What explains Aldi's ability to expand in China despite the difficulties facing many international supermarket operators?

Aldi's expansion has been gradual but significant. After opening its first physical stores in Shanghai in 2019, Aldi remained there for several years before expanding into other provinces in 2025. By March 2026, Aldi China had reached 100 stores.

Aldi's expansion is notable because it occurred in a highly competitive market. The China Chain-Store & Franchise Association (CCFA, 2025) reported growth in discount stores and membership-based retailers in 2024, while the total number of stores operated by China's Top 100 supermarket companies declined. This contrast provides important context for assessing Aldi's performance.

And this therefore raises a broader question for international companies:

What does Aldi’s experience reveal about adapting a global business model to the Chinese market?

The answer is unlikely to lie solely in Aldi brand. Its performance appears to reflect how effectively Aldi has adapted its operations and customer proposition to local market conditions.

This story 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 in the Market?

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?

About This Story

Reference