Dick, the rich Australian businessman. Supermarkets such as Woolworths and Coles must remove their diversified products before they are eliminated by Aldi from Germany, Smith (Dick Smith) said.
The entrepreneur believes supermarket giants will have to adopt Aldi's single-line business model.
Smith believes Aldi is threatening Australian food makers and his own company, Dick Smith Foods, has been hit, the Herald Sun reported.
He compares Woolworths's roughly 30, 000 grocery lines to Aldi shelves, where Aldi usually has only one product.
"Woolworths and Coles will eventually have to replicate the path of this very successful German company, Aldi," Smith said. They will have to compete with Aldi, more likely to be replaced by Aldi. "
In his remarks, his own business model has been "learned".
He said, Dick Smith Foods had a turnover of $80 million, with 17 to 18 grocery lines. Now, there are only four to five grocery lines, and turnover has dropped sharply to 16 million yuan.
Smith says consumers want to buy the cheapest food, which he thinks is unlikely to be Australian. Unfortunately, when people shop in supermarkets, they don't have patriotic feelings.
Woolworths and Coles did not respond to Smith's comments, but admitted they had different business models.
A Woolworths spokesman said their business model reflects the choice and diversity of consumers.
"We know that a one-size-fits-all approach does not meet the needs or requirements of our customers," he said. Our long-term vision is to expand our range and then provide the most appropriate locally relevant category in each store. "
By contrast, a spokesman for Coles said the value of supermarkets was important because consumers were already under pressure from rising household costs.
"over the past five years, we have reprogrammed almost all of our Coles branded products to improve the quality of our products and ensure that they are more valuable," he said.
Earlier this month, Australia's Daily Mail reported that Coles plans to open 1000 small stores to meet demand in high-density areas.
The announcement came shortly after Coles was determined to turn 40 percent of its products into its own brand by 2023, which CEO Deacon (John Durkan) said would improve, not limit, consumers' choices.
Despite Smith's belief that cheap supermarket food would not come from the Australian market, a spokesman for Aldi Australia said that under their "Australia first" supplier policy, More than 1000 of their 1200 suppliers are from Australia.
"Aldi operations are improving the livelihoods of local businesses, creating jobs and providing high-quality locally produced products to Australian families at a permanent low price," he said. More competition has prompted other retailers to improve their product supply and lower prices, which means consumers will benefit from it. "