This article was generated by translation software. For the accurate meaning, please refer to the Chinese version. If there are any parts that are unclear or grammatical errors, please let me know in the comments section.
M&S
When I was young, I occasionally went with my mother to Marks & Spencer (M&S) on Nanjing West Road. It was a two-story store – clothing on one floor, household items and snacks on the other. The store was spacious, though M&S seemed expensive for a household goods store back then. It suddenly closed in 2016, and I remember visiting during the clearance sale to buy some cookies and snacks.
Later, I discovered that not all M&S stores in the UK are large-scale. Medium-sized single-floor stores are more common, selling daily necessities, food, and fresh produce. Their own-brand products are of high quality.
In retrospect, M&S entered the market too early, closing just as Shanghai’s economy was entering a strong growth phase. Many Shanghai residents’ consumption habits changed significantly during 2015-2019. After the pandemic, despite a trend toward downgraded consumption, Sam’s Club became even more popular. With a good supermarket shopping experience, there seems less need to visit shopping malls.
Aldi
In the UK, Aldi positions itself as high value-for-money, similar to Lianhua, with quality and experience below M&S, maintaining its market share.
In China, it positions itself as a premium community supermarket, more like M&S, with quality bakery sections, private-label products, and fresh food. They rarely open in busy commercial areas, focusing instead on residential areas with high foot traffic.
2015-2019 felt like a period of chaotic growth. Only after reaching a plateau did people readjust their lifestyle rhythms.
Aldi entered China in 2019, observing the battle between Sam’s Club and Freshippo while growing steadily alongside changing Shanghai consumer habits.
Aldi expanded after the pandemic, offering fewer categories than traditional supermarkets, with self-produced products to control costs. Their stores are typically medium-sized (around 800 square meters), similar to common M&S stores in the UK. Their Western-focused product structure suits Shanghai consumers well.
Aldi has a high proportion of private-label products, reportedly reaching 70%, compared to 30-35% for Freshippo and Sam’s Club. This strategy resembles Sam’s Club’s approach of selecting quality products while emphasizing their own brand marketing, increasing their bargaining power.
Notably, Aldi’s localized business model includes increasingly China-specific new private-label products, like Wanianqing and salt water popsicles.
Since Aldi opened nearby, our family visits Sam’s Club less frequently.
Conclusion
M&S, Aldi, and Sam’s Club share one common feature: they’re all “enjoyable to shop at” with good overall shopping experiences.
I recently enjoyed watching videos about “how to run a convenience store.” The instructor emphasizes cigarettes, courier services, and beverages. Cigarettes can’t be sold online, courier services attract young people, and beverages are daily necessities. These items drive traffic, encouraging nearby purchases and additional consumption.
The boom in online economy has led to physical store closures. Getting consumers into stores remains a long-term challenge. These supermarkets offer solutions through “good experience” and “community focus.” Developing consumption habits around small community centers seems to be the future direction – not all consumers need large shopping malls.
Before writing this article, I thought M&S might have fared differently if it had entered China in 2019. After finishing, I realized this wasn’t the case – Aldi’s supply chain system is mature, and their positioning is much clearer than M&S’s when it entered China.