China: DRC's The Grocer Interview - German Drugstore Müller stops expansion plans in China

It could have been the most spectacular entry of a German retailer into #China in years. As the company confirmed upon inquiry, the drugstore chain Müller had explored expanding into China with its own physical stores. The first branch was slated to open in Shanghai in the fourth quarter, with up to 500 locations envisioned.

However, the retailer has now pulled back. "For the current phase, Müller has decided to focus its expansion efforts on Europe, particularly on the newly entered markets of Slovakia and the Czech Republic," a spokesperson stated. Further European countries are currently under evaluation.

Experts like #Marc Houppermans, Drs consider this the right move. While the market offers potential, the risk would have been very high. "The classic Müller concept — a wide assortment of well-known brands at good prices — is considered too easily replicable in China," said the Executive Partner of Discount Retail Consulting. Chinese retailers are able to "scale multi-brand concepts faster and more efficiently."

#ALDI SÜD has demonstrated that it is possible for European retailers to expand in China with their own stores, while others have failed spectacularly.

What do the China experts here on LinkedIn think: Are there German formats that could achieve sustainable success in China? And what are the biggest hurdles?

Handelsblatt Martin Benninghoff

Read more: Unternehmen: Drogeriekette Müller stoppt Expansionspläne in China

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