Part 6/9:
Aldi's reliance on private label products is a cornerstone of its low-cost strategy. Approximately 90% of its stock comprises store brand items, which allows Aldi to negotiate favorable prices directly with manufacturers. This approach not only reduces costs but also helps control quality and product availability.
While some competitors like Trader Joe’s create exclusive, unique items such as Ube Mochi Pancake Mix, Aldi’s private labels often mimic well-known national brands, such as replacing Wheat Thins with Thin Wheat. This tactic is designed to give consumers the perception of purchasing the same quality at a much lower price, reinforcing Aldi’s value proposition.