Round Table China The "hard discount" supermarket sector in China
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Jan 2, 2026 Discover the fascinating world of hard discount supermarkets in China, where a no-frills approach keeps prices incredibly low. Learn how extreme cost control and efficiency enable these stores to thrive despite thin margins. Explore the origins of this model, dating back to 1948, and why China’s market potential remains largely untapped. Dive into strategies like direct sourcing, private labels, and streamlined product selections that keep the inventory lean and the costs down. It's a unique retail revolution worth tuning into!
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What Defines Hard Discount Supermarkets
- Hard discount stores offer goods continuously and significantly below market average by extreme cost control.
- They focus on essentials and efficiency to sustain low prices with high volume.
Origins In Postwar Germany
- Yangyang traces the model back to 1948 in Dortmund, Germany, started by a company called LD.
- The model grew with principles: no decoration, no service, no advertising to cut costs.
Big Growth Potential In China
- Hard discount penetration in China is still low (~8%) compared with nations like Germany (42%) or Japan (31%).
- That gap signals large growth potential in China's huge grocery market.