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China: NB democratised modern retail and opens over 100 stores in Guangdong in 2026

Following China’s annual "315 Gala (also known as the CCTV 3.15 Evening Gala) is a high-stakes, "name-and-shame" television special in China that is essentially the country’s version of a corporate "judgment day." Aired annually on March 15 (World Consumer Rights Day) by state broadcaster CCTV, it has a massive cultural impact. 


Last year public trust in Chinese household products has been shaken. Last year’s scandal regarding the quality of sanitary napkins remained a sensitive topic for many families.


In response to this demand for trust and value, the "hard discount" supermarket leader Chaohesuan NB (previously know as HEMA NB and a rising competitor to Aldi China) has entered the personal care market. Their strategy? High-quality essentials at prices that seem impossibly low.

'Medical-Grade Quality for Pennies', in Chaohesuan NB stores, private-label sanitary pads are now selling for less than $0.07 USD (0.50 RMB) per piece.


While the price is low, the quality is positioned as premium. The products are labeled "Disinfection Grade," a specific Chinese regulatory standard that sits just below medical-grade equipment. The brand's personal care lead explains that they use 40g of ultra-soft material — 30% more than the industry average — resulting in a texture as soft as a high-end facial cotton pad.


By cutting out the "brand tax"

Chaohesuan NB has lowered prices significantly with its Private Label compared to the branded market average:

  • Daily Pads: $0.07 vs. $0.13 market average.

  • Night Pads: $0.08 vs. $0.31 market average.

  • Period Underwear: $0.27 vs. $0.46 market average.


The "Hard Discount" Secret: How is it so cheap?

The answer lies in Structural Cost Leadership, a 5kg bottle of laundry detergent can sell for just $2.50 (17.80 RMB). Chaohesuan NB follows the "hard discount" model (similar to Aldi or Lidl), which achieves low prices by:

  1. Eliminating Marketing: Zero spend on traditional advertising or celebrity endorsements.

  2. Private Label Focus: Controlling the entire supply chain from factory to shelf.

  3. No Middlemen: Goods go directly from the manufacturer to the store, removing several layers of distributor markups.

  4. Bulk Purchasing Power: With hundreds of stores, they can negotiate massive volume discounts with top-tier European chemical and trusted ingredient suppliers like DSM-Firmenich.

  5. Efficient Logistics: Minimalist store decor and low staffing costs ensure that every cent saved is passed on to the customer.


2026 Expansion: Targeting the Guangdong "Lowland"

For years, the "hard discount" trend was concentrated in Northern China and the Shanghai region. The massive Guangdong province (home to Shenzhen and Guangzhou) remained relatively untouched by this specific retail model.


That is changing in 2026. After successful pilot stores in Shenzhen and Dongguan earlier this year, Chaohesuan NB is preparing a massive push into the South. Industry insiders report that Guangdong is the primary target for 2026, with plans to open more than 100 new stores.


As competition heats up with Walmart’s "Marketside" brand and other local players, 2026 is set to be the year that "hard discounting" becomes the new normal for China’s southern middle class.


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