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• W2897784384 abstract "Abstract The international expansion of the German discounters Aldi and Lidl in recent years has been a large success in grocery retailing. In China, the world’s largest grocery retail market, however, grocery discounters have not (yet) established a physical store presence. In 2017 Aldi Süd and Lidl for the first time entered a new market without the help of a physical store, implementing an online shop in China. As to the format’s future, significant disagreement amongst retail experts exists. This paper, which is based on qualitative interviews with high-ranking senior executives of international retailers, argues for three major reasons as to why the discount format has not hitherto gained a foothold in the Chinese market. Firstly, due to the characteristics and challenges of China’s market, such as high fragmentation as well as the need for strong localisation, a high standardisation of the format is not possible. Secondly, the extremely low-margin operation of discounters faces a price level in China that is already very low, limiting one of the discounter’s major competitive advantages. Thirdly, the discount format is facing a lack of consumer acceptance, toughening the establishment of private brands, which represents one of the major characteristics of the discount format." @default.
• W2897784384 created "2018-10-26" @default.
• W2897784384 creator A5005679943 @default.
• W2897784384 date "2018-09-01" @default.
• W2897784384 modified "2023-10-14" @default.
• W2897784384 title "Retail Format Competition: The Case of Grocery Discount Stores and Why They Haven’t Conquered the Chinese Market (Yet)" @default.
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• W2897784384 doi "https://doi.org/10.2478/mgr-2018-0018" @default.
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