Discount Retail Consulting Management was invited by Qiri-E to open and attend the second 2026 Longshang and Qiyang Zhengzhou Expos. The event was held from May 8th to 10th in Zhengzhou, a city recognized as China’s food production capital. The expo served as a major venue for retail transformation, connecting global manufacturers and buyers, with a strong focus on private label brands and modern retail strategy.
Key Insights from DRC’s Expertise
DRC presented presentations that contained extensive insights from the DRC’s leadership, including interviews and analyses of the Chinese market. These points formed the basis of their discussion on the status of discount retail and private labels.
Status of Discount Retail in China
Market Maturity and Growth: The discount retail trend has gained significant traction in China, with various concepts being launched by local retailers and e-commerce companies . However, the market is still considered to be in its early stages compared to Europe .
A “Long and Slow Race”: According to Marc Houppermans, a DRC partner and former Aldi executive, the discount retail sector is a “long and slow race.” He noted that to achieve overall profitability, a discounter typically needs to operate around 500 stores . For context, the largest players in China are still approaching this scale.
The E-commerce Challenge: A unique characteristic of the Chinese market is the dominance of e-commerce, which operates on a similar logic of efficiency and value. This creates a specific challenge for physical discount stores, as e-commerce captures some of the market share that discounters might otherwise hold, particularly in non-food categories .
Developments on Private Label (PL)
The Role of Local Supply Chains: A major development highlighted by DRC is the shift from relying on imports to building robust local supply chains. For instance, Aldi China’s transformation into a “local powerhouse” was driven by partnering with top-tier Chinese FMCG manufacturers for its private label products. This strategy is the “ultimate goal” for any hard discounter as it drastically cuts procurement and logistics costs .
A Core Service of DRC: Private label strategy development is a central service offered by DRC. For FMCG manufacturers looking to enter the discount retail channel, DRC’s services include developing private label strategies, contract manufacturing, product positioning, and supply chain strategies .
Expert Takeaway
The core message from DRC is clear: while the discount retail market in China is growing rapidly and holds immense potential, it is not a quick-profit venture. Success depends on a long-term commitment, achieving significant scale, and mastering the development of a cost-effective, locally-sourced private label assortment.
Key Insights from DRC’s Expertise
Status of Discount Retail in China
Developments on Private Label (PL)
Expert Takeaway
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