The recent visit of a second group of 17 prominent Chinese retailers and FMCG manufacturers to the Netherlands and Germany provided a valuable opportunity to deepen their understanding of the discounter model and value chain, which has not fully penetrated China's grocery sector. This visit followed the first group's trip in May this year. See: China: Chinese retailers exploring German discount retail (discountretailconsulting.com)
During the visit, the delegation toured discount OEM manufacturers in the Netherlands and Germany, such as Bavaria beer (OEM producer of Schultenbrau and Kordaat beer) and Maxim Cosmetics (OEM producer of Lacura and Cien), illustrating the contrast between FMCG companies experienced in brand and private label production and those focusing solely on private label OEM production.
The itinerary included visits to discounter stores, grocery, and drug stores in Amsterdam, Cologne, and Düsseldorf.
ILPL and DRC organized a workshop for the top-tier Chinese grocery retailers and FMCG manufacturers, with over 250,000 employees, showcasing the insights and evolution of the discount retail model in Germany, its birthplace. The workshop covered the startup, business model and growth strategies of discounters, emphasizing the crucial role of private label development in the discounter business.
The visit continued with an in-depth exploration of a leading European discounter's warehouse and retail stores, offering the Chinese delegation a comprehensive view of the discounter's operational supply chain model and ongoing innovations.
The visit concluded with a Q&A session with the former chairman of Aldi and Trader Joe's.
Conclusion
The participants' enthusiasm indicates that the discounter concept holds significant potential for future adoption in the Chinese grocery market, which is relatively underdeveloped compared to the established discounter presence in Europe.
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