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China: ALDI and Hema NB - Return to Simplicity

Discount Retail Chain ALDI and Hema Super-Value NB (超盒算NB) have gone a step further by selling products directly out of their original shipping crates and turnover boxes. They have stripped away the layers of packaging that define modern retail, returning to the most primal and core dimension: the exchange of goods. With an almost raw honesty, they tell us that the essence of retail has nothing to do with flashy appearances.


Hard Discount retail can be summarized by four key characteristics:

1. Minimalist Private Label Product Power

Less is more. By maintaining only 1,600 to 2,000 SKUs, these retailers follow the "customer decision tree" to the extreme. They trim the selection until it can be trimmed no more, leaving only "champion products" whose quality and price are beyond reproach. This builds a level of trust that allows customers to shop "with their eyes closed."


2. Direct Low Pricing

Low prices are not a temporary promotion; they are a genetic-level modification of the cost structure. Every cent saved across all operational links is reflected directly on the price tag, building a solid and sustainable price barrier.


3. Minimalist and Efficient Shopping Experience

By discarding unnecessary shopping guides and distractions, these stores empower the customer with full autonomy. You find it, you grab it, and you check out yourself. Unless there is a specific question, the entire process is self-service.


4. Every Action Revolves Around Value

They don't obsess over storytelling, creating "scenes," or competing on service. There are no luxurious renovations, no forced "lifestyle" atmospheres, no complex cultural messaging, and no aesthetic displays. Instead, employees are multi-skilled and versatile.


Store design follows two supreme principles:

  1. Make it easy for customers to find and pick up products quickly.

  2. Minimize operating costs to the absolute limit.


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