China: Hard Discount Chain Biyide, the Asian 'Aldi-Rival'

Updated: Jan 6

Discount Retail Chain Biyide (owned by US/European/Chinese PE investors) was invented in Germany by the Brandes family. The hard discounter is on the road to success in China. The young company advertises with the highest quality and lowest prices. Dieter Brandes dealt with the development and rapid growth of hard discounters as early as 1970 in Europe. For a while he worked closely with the Aldi owners Karl and Theo Albrecht. He observed the development of Aldi very closely. The global expansion impressed him. Aldi now operates more than 10,000 stores worldwide, with everyday high quality and mainly own private label branded products at great low prices. And as this concept worked so well, Brandes decided to bring its own hard discounter to China in 2015, after starting-up or scaling-up hard discounters such as BIM (Turkey), D1 (Colombia), Dukan (Saudi Arabia) and DALI (Philippines). In October 2016 the first Biyide market opened its doors in Shanghai. And after a difficult start the spoiled Shanghai shoppers also became enthusiastic about the offer and the Biyide hard discount stores.


Local products and imported assortment

Customers flock to the markets. Because at Biyide you get local products from local suppliers. The assortment range contains of 400 SKUs and fulfils all basic wish. The assortment consists of a growing number of high quality private label brands and a slowly decreasing number of branded label brands. From basic groceries to personal care and household items to drinks and snacks, offering top value-for-money. The products are from the region and popular with the Chinese. But Biyide also attracts shoppers with imported European products. Such as Ritter Sport Chokolate, Ferrero Rocher, Milk and Ricola can be found in the assortment, among other imports. And on the drinks shelf, own private label branded Brunonia Premium Lager Bier is next to good priced German and French wines. Popular products not only among the Chinese, but also expats from all over the world are happy about one or the other local European product.


Biyide expands further

So it's no wonder that the Chinese hard discounter wants to expand further. After more than four years, the young company has grown to over 180 stores, 2 Distribution Centers (10,000m2 each) and own logistical organisation. Most of these are in the metropolis of Shanghai alone. The rest are located in Jiangsu Province north of Shanghai. And the success story is not over yet. With deep pocket PE investors that support the further growth and expansion, Biyide is looking for new properties on its website. They advertise with punctual rent payment, trustworthy and long-term partnerships and high-quality construction. They are interested in a net store size of 180 to 280 square meters. They prefer land close to the customers' homes creating proximity and convenience with sufficient parking possibilities. Biyide can keep their low prices thanks to the simple set-up of the stores. But who cares. If the store is clean and well organized and offers the lowest prices and high quality products, the customer does not need a feel-good oasis when shopping for groceries. Biyide expects to reach a sales level of more than RMB 900 Mio (US$138 Mio) in 2020.


Click here for more: https://www.shine.cn/biz/company/2003103870/

and the Biyide website: 比宜德 (biyide.cn)



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