What is LIDL? LIDL Review

1. Introduction

At present, the number of LIDL chain stores in Europe has surpassed ALDI for the first time, reaching 7,271 branches, while ALDI has only 6,997 branches. However, the food prices of LIDI supermarkets are still much higher than those of ALDI. ALDI's main focus has always been to concentrate its stores in a certain area, while LIDL is spreading everywhere, opening stores across Europe at a rate twice that of ALDI. The cost is much higher than the former. It is not clear who will win, but a more intense competition for survival has undoubtedly begun again.

LIDL is also known as the supermarket for the poor. The sales volume of food, daily necessities and small appliances is relatively large, and the store is relatively small. However, LIDL purchases in large quantities. Once a product is determined, it generally only needs one model, and the order quantity is usually not less than 50,000 pieces. This makes its procurement, negotiation, warehousing and logistics costs much lower than other retailers that pursue variety diversification. This is also the weapon for its explosive growth in recent years.

When working with LIDL, order confirmation comes before sample confirmation. This is a headache for foreign trade manufacturers. According to common practice, customers will first ask for sample confirmation and then place an order. LIDL first checks whether the supplier has this capability.

If the pre-production sample passes the relevant quality inspection, the mass production can be arranged, but this does not mean that the foreign trade manufacturer will not have any risks. It will also require three inspections: pre-production sample, mid-term inspection (in-line), and final inspection. If any of them fails to pass the inspection, it cannot be shipped.

LIDL is a BSCI member. Factories that receive LIDL orders will receive BSCI factory inspections derived from the SA8000 standard by SGS/ITS. Issues such as child labor and underage labor are issues that many domestic manufacturers need to pay attention to. This is also a very important factor. LIDL does not cooperate directly with factories, but through middlemen. The middlemen will first come to inspect the factory, and if they are qualified, they will directly enter the contract stage.

2. Factory Inspection Documents

Many factories do not establish their own assessment standards when facing anti-terrorism factory inspections. In order to provide suppliers with factory inspections to obtain high-value orders, Lidl basically evaluates factories according to CSCC standards, except for some of its own requirements. Wobo provides some audit documents based on its many years of experience in Lidl's anti-terrorism factory inspections.

Records of container seals (including license plate number, cargo number and seal number)

Documentation recording the incoming and outgoing shipments of goods (mainly finished products)

In and out records of processed raw materials

Raw materials in and out records

Safety rules, regulations, product specifications and other documents provided by customers

Employee personnel records

factory regulations

Factory security rules and manuals

Security 24-hour shift record

Daily vehicle entry and exit registration form

Visitor entry and exit registration form

Security personnel's work permit or local government department's information proving their identity

3. Brand Honor

In January 2020, the 2020 list of the world's 500 most valuable brands was released, with Lidl ranking 148th.