Lidl launches Chinese web shop
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German supermarket chain lidl launched its own web shop in China on Alibaba’s online platform, Tmall Global, similar to what many other Western companies have done.
The web shop, launched this week, will offer several of Lidl’s private labels. European products have been very popular in China and Lidl therefore wants to introduce its Combino, Bellarom and Sondey brands to the nation. For the time being, it will focus on cereal and dry food brands, but the company will most likely expand its product range if the web shop is deemed a success.
Lidl will ship the products straight from Germany, imported through a subsidiary in Hong Kong. It is a different approach to competitor Aldi, which also has a shop on Tmall Global, but imports its products from Australia.
This is yet another Western company that will try to please the Chinese consumer through Tmall, thanks to Alibaba’s attempts to entice Western companies to use its platform. Chinese consumers have little faith in their own local products and are yearning for alternatives, which they now find on Tmall Global.
Questions & Answers
Q.Which of Lidl's product categories will be available on the new Chinese web shop initially?
Which of Lidl's product categories will be available on the new Chinese web shop initially?
The web shop will initially focus on Lidl's cereal and dry food brands. The company aims to introduce its private labels like Combino, Bellarom, and Sondey to the Chinese market.
Q.How will Lidl transport its products from Germany to China for the web shop?
How will Lidl transport its products from Germany to China for the web shop?
Lidl plans to ship its products directly from Germany. These goods will be imported into China via a subsidiary located in Hong Kong, establishing their supply chain.
Q.What is the key difference in strategy between Lidl and Aldi's Tmall Global operations?
What is the key difference in strategy between Lidl and Aldi's Tmall Global operations?
Lidl will ship products directly from Germany, whereas its competitor Aldi imports its products for Tmall Global from Australia. This highlights different sourcing strategies for the Chinese market.
Q.Why are Chinese consumers reportedly keen to purchase Western products like those Lidl is offering?
Why are Chinese consumers reportedly keen to purchase Western products like those Lidl is offering?
Chinese consumers reportedly have little faith in their local products and are looking for alternatives. They are finding these options increasingly available through platforms like Tmall Global.