German discount chain Aldi to leverage Aussie farmers for China expansion

German discount supermarket giant Aldi will leverage its Australian suppliers as it looks to begin retail operations in China via e-commerce beginning mid next year.

Australia exports over 80 percent of produce due to increasing demand for high quality and clean goods in the emergent Asian middle class, driven primarily from China.

Following detailed feasibility studies, Aldi on Monday announced it would begin offering selected non-chilled grocery and wine products sourced from its Australian suppliers in the second quarter 2017 via an e-commerce retail platform. The move is a bid to gain a foothold in the Chinese market before a wider Asian expansion.

"We know there is a strong demand among Chinese consumers for Australian manufactured products and our goal is to provide a competitively priced alternative for shoppers seeking quality groceries," an Aldi spokesperson told Xinhua in a statement on Monday.

"We believe our unique offer of high-quality Australian products at unbeatable prices will be an attractive proposition for Chinese consumers."

Aldi has had a rapid expansion across Australia since 2001, taking a significant market share from the duopoly Woolworths and Wesfarmers owned Coles, allowing the German giant to gain and develop key relationships in the nation's agriculture industry.

"Our growth across the country has provided increased business for these suppliers, allowing them to invest this back into their own operations and contributing to their success," the spokesperson said.

"We look forward to further expanding these relationships as we develop further opportunities in Asia." Endit