The market for grocery shopping in China is expected to make a yearly increase of 32%, with a market value that already has a value of 70 milliards in 2018. For this reason, it is no surprise that both Aldi and Asda recently started to invest in online platforms in China. However, it is not an entirely exceptional move for a large supermarket chain to enter the Chinese e-commerce market seeing as Albert Heijn has already been active in China’s online world since 2015. Still, there are still plenty opportunities for online grocery shopping in the Chinese market. In 2016 the Chinese spend around €540.8 million on food & beverages.
After France, the Netherlands are the biggest in food and beverages export to China in the world and have a market share of 7 million. The Chinese consumers are looking for authentic products, and research shows that the most sought-after products in China are milk products, seafood, fresh fruit, meat and alcoholic beverages. The most in demand Dutch products are milk products such as baby powder and baby formula. The Netherlands is doing well with the Chinese consumers. The reason behind this is that the Chinese consumer generally has more trust in products that are sold on cross-border platforms because both the authenticity as the quality of these products can be guaranteed. Whereas due to previous scandals in the Chinese market Chinese products are not trusted as much by the Chinese consumer. Making quality and trust one of the most important assets a product can have in China.
Both supermarket chains Aldi and Asda have oriented towards the Chinese market with mainly their own household products. The English warehouse Asda has started a partnership with JD.com in order to meet the demand for English food & beverage items. Asda will start to sell products like biscuits, coffee, tea and other snacks, they are already planning to expand their online repertoire in the future with even more of their household items. Aldi, the company with a German origin, has started a Tmall Global store in April with mainly their own household breakfast items, snacks and wines. During their testing period products such as milk powder, honey and nuts were so popular and in demand that they were sold out in no time.
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