You are on page 1of 35

Lidl Asia

Introduction
NOVEMBER 2022
ABOUT LIDL ASIA
WE ARE PART OF
4TH LARGEST RETAIL THE SCHWARZ GROUP GERMANY
+133.6b EUR 13,450 32 550,000 >200

CHAIN WORLDWIDE
Schwarz Group Stores Countries Employees Distribution Centers
Annual Turnover

OUR HISTORY

2017 2021
Entered into Lidl Asia HQ in Singapore
the US market Merger of Kaufland Hong
1930 Kong and Lidl Asia
Grocery 2006
New market position:
Outstanding value
for money
1980
Start of massive
expansion
1973 all over Europe

1ST Discount Store


OUR CUSTOMER EXPERIENCE BIG ON QUALITY

EFFICIENT SUSTAINABLE

SIMPLE

MODERNIZED CUSTOMER ORIENTED


MEET OUR CUSTOMER
FAMILIES ARE OUR MAIN MARKET

GENERAL CUSTOMER PROFILE:


Families with kids (share 35,5%), who live in households with 3+ persons (share 34,5%),
with a low/middle income of 1.500€ - 3.500€ per household per month (share 59,8%).

Source: GfK Consumer panel Germany 30.000, FMCG MAT Dec 2017
ASSORTMENTS

FOOD IS OUR MAIN


BUSINESS
90% OF OUR BUSINESS IS FOOD

NON FOOD IS DRIVEN BY IMPULSIVE BUYING

EVERY MONTH WE WELCOME OVER 100 MILLION


CUSTOMERS ACROSS EUROPE AND THE US

GERMANY OFFERS THE MOST COMPETITIVE FOOD PRICES IN EUROPE


OUR DISPLAY ASSORTMENTS

PROMOTIONAL SALES
IN OUR STORES
Promotional baskets with unique or multiple
products inside.

Same retail prices for all in each individual


assortment.

Many promotions are repeated. We evaluate


sales performance in days.

Over 60% sold within 7 days.

We also develop “ready to sell” concepts like


the example displayed on the right side.
WHY IS LIDL DIFFERENT
FROM OTHER RETAILERS
LEAFLET BY POST & ONLINE ADVERTISEMENT

Promotion based

1 Order = 1 Shipment

High Volumes

Sales Performance measured in days

Target: Selling whole quantity within 7 days

A-Brand Quality at discount price


ABOUT LIDL ASIA

OUR PRESENCE 12th Floor, Mapletree Business City,


30 Pasir Panjang Road
Over 900 people dedicated to support our retail Singapore
business with access to the best manufacturers

Apparel & Footwear, Hardgoods and Food Lidl Asia Pte. Ltd. HQ
divisions develop products for Lidl International
22nd, 25th, 27th Floor, ICC
1 Austin Road West
Sourcing from over 12 countries across Asia Hong Kong

8 Representative Offices based in


- Shanghai, China - Shenzhen, China - Vietnam
- Cambodia - Myanmar - Turkey Lidl Asia Pte. Ltd. – HK Branch
- Bangladesh - Pakistan

2 Agents:
- ANR in Sri Lanka - Meyraki Global In India
ABOUT LIDL ASIA

LIDL ASIA & KAUFLAND HONG KONG

Lidl and Kaufland belong to the Schwarz Group

We are merging our Operations. Opportunity for suppliers to explore


possibilities of supplying to both companies
22nd, 25th & 27th Floor
International Commerce Center
Hong Kong
We are growing our footprint across the globe – Lidl has 12000+ stores
spread across Europe and USA, Kaufland has 1400+ stores in Europe
Lidl Asia Pte. Ltd. – HK Branch
22nd Floor
Lidl Asia & Kaufland Hong Kong offices are both located in the same Kaufland Hong Kong Ltd. International Commerce Center
Hong Kong
premises – International Commerce Center, Kowloon, Hong Kong
ABOUT LIDL ASIA

OUR OWN LAB


IN HONG KONG

Outsole abrasion tester & Outsole flexing Head and Torso Simulator (HATS) – Head Integrating Sphere - Lighting Product
tester Phone sound quality
ABOUT LIDL ASIA

OUR INTERNAL STRUCTURE


LIDL INTERNATIONAL HQ LIDL ASIA
(based in Germany) (based in Asia)

PRODUCT
Germany DEVELOPMENT
USA
France
LOGISTICS SOURCING

UK

Lithuania INTERNATIONAL MERCHANDISING


BUYERS QUALITY PRODUCTION
Spain

Italy
Austria ARTWORK &
CSR
Poland PACKAGING
Hungary
OUR SUPPLIER NETWORK

Our Supplier Network is vast and


INTERNATIONAL BUYERS currently covers various countries
(centralized) around the globe.
LIDL INTERNATIONAL HQ

Lidl Asia Pte. Ltd. –


Hong Kong Branch

MERCHANDISING

Lidl Asia Pte. Ltd. –


Lidl Asia Pte. Ltd. –
Singapore HQ
Representative Offices
• Bangladesh
• Cambodia
• Shanghai, China
• Shenzhen, China
• Myanmar
• Pakistan
• Turkey
• Vietnam
ABOUT LIDL
ABOUT ASIA
LIDL ASIA STRUCTURED TO SERVE
OUR CUSTOMERS
MEET OUR TEAMS SOURCING
Identify, develop, pre-screen and register suppliers
Establish strategic partnerships in key and emerging markets
MERCHANDISING
Educate new suppliers to Lidl’s “way of working”
Drive the end-to-end process with all parties Pre-allocate suppliers and monitor capacity across categories
Negotiate conditions with factories Develop and build long-term supplier strategy with merchandising
PRODUCT
Communicate with international buyers
DEVELOPMENT
Ensure product development roadmap
Build category strategy with other departments
SOURCING
LOGISTICS

QUALITY ASSURANCE
PRODUCT DEVELOPMENT Ensure product safety, quality and functionality
Source, develop and design products MERCHANDISING Liaise with 3rd parties on testing methods and results
MERCHANDISING Responsible for product compliance with regulations
Perform market studies & benchmarks
Understand customers’ needs QUALITY PRODUCTION Liaise with Lidl’s internal lab to create test protocols and benchmarking
Coordinate theme planning & sales requirements

COMPLIANCE & SUSTAINABILITY CSR ARTWORK


PRODUCTION SUPPORT
Perform social & environmental audits & PACKAGING Monitor manufacturing process from beginning to end
Support suppliers to improve work conditions Provide live production information
Educate on new regulations Perform Factory Technical Evaluations (FTE)
Commit on environmental initiatives Develop tools to monitor project on time deliveries

ARTWORK & PACKAGING LOGISTICS


Develop packaging for private label brands Ensure products reach Lidl stores on time
Provide print PDFs to suppliers Coordinate supply with Lidl logistics partners
Ensure the quality of packaging
each Selection covers +/- 3 months of stores sales / 4 Selections per year

FREQUENCY
Oct Jan
Apr Jul Oct Jan Apr Jul Oct
Selection Selection Selection Selection Selection Selection Selection Selection Selection
Aug Sep Nov Dec Feb Mar May Jun Aug Sep Nov Dec Feb Mar May Jun Aug Sep

APR SEL
BRIEFINGS PRE- SELECTION NEGO- PRE-
Apr Selection PREP
OFFER PREPARATION
SELECTION
HALL TIATION
PROD
PRODUCTION

FOB DELIVERIES STORES


W35 <-> W47 W47 <-> W06

JUL SEL
BRIEFINGS PRE- SELECTION NEGO- PRE-
Jul Selection PREP
OFFER PREPARATION
SELECTION
HALL TIATION
PROD
PRODUCTION

FOB DELIVERIES STORES


W48 <-> W08 W06 <-> W20

OCT SEL
BRIEFINGS PRE- PRE-
Oct Selection PREP
OFFER PREPARATION
SELECTION
SELECTION
HALL
NEGO-
TIATION
PROD
PRODUCTION

FOB DELIVERIES STORES


W09 <-> W21 W21 <-> W33

JAN SEL
BRIEFINGS PRE- SELECTION NEGO- PRE-
Jan Selection PREP
OFFER PREPARATION
SELECTION
HALL TIATION
PROD
PRODUCTION

FOB DELIVERIES STORES


W22 <-> W34 W34 <-> W46

Notes
1 project = 1 FOB date
Countries volumes
Engagements
OUR ONBOARDING PROCESS ORDER
6
If successful, order placement
on your first order
HOW TO BECOME A
LIDL SUPPLIER 5 BECOME A LISTED SUPPLIER
Registration in our supplier pool

SOURCING TEAM: 2-4 WEEKS


1 EVALUATION
Collection of supplier information for pre-evaluation
Initial Benchmarking/Price Quotation, Sampling VISIT OUR OFFICE
Collection of key documents (BSCI, Bank Proof, Business License) 4 Invitation to Lidl office for meeting and discussion
Factory visit

4-8 WEEKS
TIME DEPENDS ON AVAILABILITY

PRODUCTION TEAM:
COMPLIANCE TEAM: SOCIAL AUDIT
2 TECHNICAL EVALUATION 3
Factory Compliance Evaluation (FCE) to make sure that all our
Factory Technical Evaluation (FTE)
compliance standards are understood
Understands how your factory works
WORK WITH
WORK WITHUSUS
PRODUCTION TEAM
OVERVIEW FACTORY TECHNICAL EVALUATION (FTE)
Visits your factory or appointed third party and performs an evaluation (1-2 full days)
This includes: machinery, set up, quality control and raw material management
It helps to ensure that all production steps and quality are fulfilled
in your factory
SOURCING TEAM Our target is NOT to outsource any production, if not necessary
FTE must be “passed” before placing an order
EVALUATION OF HIGH POTENTIAL FACTORIES FOR LIDL
The first department of Lidl Asia you will meet
Informs you about Lidl Asia and all necessary procedures
Discusses open questions with you
Visits your factory after a successful pre-evaluation QUESTIONS & ANSWERS
(factory profile / prices / quality requirements) Q. DO WE NEED TO HAVE THIS EVALUATION?
A. Yes!
Q. WHO WILL DO THIS EVALUATION ?
A. Lidl Asia or an appointed third party (free of charge).
QUESTIONS & ANSWERS Q. WHEN WILL THE AUDIT BE DONE ?
A. It depends on order potential/selection, organized by Lidl Asia.
Q. WHAT PREPARATION IS NEEDED BEFORE THE VISIT?
Q. HOW CAN I PREPARE MYSELF AND PRE-CHECK ?
A. None unless requested (e.g. sample preparation).
A. During the factory visit, Sourcing Team provides a checklist to help you prepare.
Q. HOW LONG DOES THE PRE-EVALUATION VISIT LAST IN THE FACTORY?
Q. WHAT HAPPENS IF WE FAIL ?
A. About 2-5 hours, depending on the factory size and topics.
A. We support you with the first audit. In case your factory fails, then you have
Q. CAN WE FAIL?
3 months to improve based on a CAP (Corrective Action Plan). We will then conduct a re-
A. Sourcing Team will support and inform you regarding potential concerns during the visit.
audit. No order will be placed without a “passed” FTE.
WORK WITH US
COMPLIANCE

OVERVIEW WE ARE FULLY COMMITTED TO SOCIAL COMPLIANCE


Our suppliers must have a valid certification/ qualified audit as listed below:
For Social Compliance:
• Amfori BSCI – overall rating in either “A”, “B” or “C”, with no findings in
LOGISTICS PA8 (Child Labour), PA9 (Special Protection for Young Worker), PA11
AS OUR BUSINESS IS PROMOTION-BASED, WE MUST DELIVER ON-TIME: (Bonded/ Forced labour), and PA7 (Occupational Health & Safety) rated
“C” or above
Our buying term is FOB and we ensure that the delivery commitment to
• SA8000
Lidl countries will be reached
• Better Work – factory in Bangladesh and Cambodia with sewing
Lidl has in total 10 “country blocks” with different languages & designs
processes must participate in Better Work and Advisory Services
Each country block has its own shipping mark
respectively to replace BSCI and SA8000. Factory located in other
Better Work covered countries can choose to join Better Work.
QUESTIONS & ANSWERS
QUESTIONS & ANSWERS • RSC RMG Sustainability Council - factories in Bangladesh with stitching
Q. CAN WE SHIP IN SEVERAL LOTS / ETDs? processes (applicable to ready made garment and textiles factories)
A. Yes and No. In general, each order specifies 1 shipment per port of destination. See answer to next need to be registered with the RSC and achieve a total progress rate of
question.
at least 90% for shortcomings identified under RSC.
Q. HOW MANY PORTS OF DESTINATION DOES LIDL USE?
A. 3 in Europe: Koper, Barcelona & Rotterdam. 1 in the US: Norfolk
Q. WHO IS YOUR FORWARDER CONTACTS?
VMT is nominated an agency nominated by OWIM import Department, control tower to coordinate all
shipments movement under Lidl Group (Non-Food) The RMG Sustainability Council (RSC) (previously named as ACCORD) is
an independent, legally binding agreement between brands and trade
unions to work towards a safe and healthy garment and textile industry
in Bangladesh in the areas of building safety, fire safety and electricity
safety
CRITICAL NON-COMPLIANCE (Cont.) –
• Harassment, Discrimination & Abuse
WORK WITH US • Payment of wages below legal minimum compensation
• Workers’ salaries not paid by monetary compensation
• Prohibited deduction

OVERVIEW • Child Found in Production Areas


• No safety measures for vulnerable workers (Juvenile workers or pregnant
workers)
• Delay of payment to workers
COMPLIANCE • Excessive overtime work
WE ARE FULLY COMMITTED TO SOCIAL & ENVIRONMENT COMPLIANCE • Inappropriate location of dormitory
• Inappropriate storage of chemicals
ZERO TOLERANCE – SOCIAL • Lidl-restricted chemicals applied in production
• Child Labour • No valid contract with authorized waste collector where required by law
• Bribery • Wastewater discharge/ air emission value over the national law and license limit
• Prison/Detention Labour
• Threat of Life/Environmental Pollution QUESTIONS & ANSWERS
• Slavery/Bonded Labour
Q. WE DO NOT HAVE A SOCIAL AUDIT.
• Full Denial of Access
A. We can help you to arrange an amfori BSCI audit, it takes around 2-3 months till the completion of the audit.
• Unauthorized involvement of third parties or unregistered facilities If you join Better Work program, please register in https://portal.betterwork.org/OnlineRegistration. For
(Subcontractors) SA8000 certification, please contact your certification body. For detail, please contact us at rscm@lidl.com.hk
ZERO TOLERANCE – ENVIRONMENTAL Q. DO YOU ALSO VISIT US IF WE ALREADY HAVE A VALID SOCIAL AUDIT (BSCI / SA8000)?
• No valid Environmental License, Permit, and/ or Approval Document A. Yes, we want to ensure that all compliance rules are applied.
• Direct discharge of wastewater into the environment without prior treatment Q. ANY COSTS FOR US?
Any findings of behaviours and conditions to which LIDL applies zero A. No service fee for our manufacturers.
tolerance will lead to immediate termination of the business relationship Q. WHAT ARE THE BENEFITS?
with the supplier. A. Lidl Compliance team always keeps you updated with the latest regulations. We offer mitigation and
remediation support or connect you to third parties.
CRITICAL NON-COMPLIANCE – Q. MY WAREHOUSE IS NOT COVERED IN THE BSCI REPORT.
A. Compliance Audit and the above-mentioned valid certification/ qualified audit is also a MUST for the storage
• Facilities causing critical safety concerns for workers
of Lidl Asia products.
• No valid legally binding document with third-party for wastewater treatment
Q. WHAT SHOULD WE DO IF CRITICAL NON-COMPLIANCE WERE FOUND?
• Unethical Behaviour
A. A Notification Letter may be issued. We will offer mitigation and remediation supports to you to close off the
• Partial Denial of Access to documents or Facilities issues. . In cases of repetitive findings in critical areas with no improvement shown, may lead to
• Home workers discontinuance of business relationship.
• Forced Labour
WORKWITH
WORK WITHUSUS

SUSTAINABILITY GUIDELINE FOR PRODUCER


T1 producer: Tier 1 producers are engaged by the supplier to finish/assemble
ENVIRONMENTAL CERTIFICATIONS the final product, including packaging. A single producer may be considered a
supplier. If a T1 producer outsources parts or all of his production processes to a
As of January 1st, 2023, one of the below certificates must be valid from OC third party, the respective third party is considered and must be handled like a
throughout production for all T1 Producers: T1 producer.

Environmental certification Subcontractor: If a producer outsources its own production processes in whole
or in part to a company or person, then the concerned company or person is a
Amfori BEPI Level 1 or
Hardgoods subcontractor. A subcontractor will be treated like a T1 producer and must
ISO 14001
be approved and/or registered by LINT.
Textile manufacturers
STeP by OekoTex incl. DETOX to ZERO by OEKOTEX
with wet processes
QUESTIONS & ANSWERS
Amfori BEPI Lvl. 1 Q. WE DO NOT HAVE ANY OF THE ENVIRONMENYAL CERTIFICATION MENTIONED ABOVE.
or A: Please make sure you are certified/ assessed before 01 Jan 2023. Otherwise, you cannot
Higg Facility Environmental Module* receive order confirmation from LIDL
Textile manufacturers
or Q: HOW SHOULD WE START TO BE CERTIFIED?
without wet processes
ISO 14001 A: Please contact the preferred certifier, e.g. for BEPI certification, we suggest to contact
or Bureau Veritas (BV) QUESTIONS & ANSWERS
STeP by OekoTex Q: ANY COST FOR US ON ENVIRONMENTAL CERTIFICATION?
A: Yes. Please contact the service providers to confirm the cost depending on your type of
*Verified total score must be over 25% & Verified score in each individual operations and size.

performance area must be 25% or better


WORKWITH
WORK WITHUSUS

SUSTAINABILITY GUIDELINE FOR PRODUCER


ENVIRONMENTAL CERTIFICATIONS

OUR PREFERRED 3RD PARTY AUDIT FIRMS AND CONTACTS


In view of the number of audits required, we suggest to use the below partners that have sufficient auditors:
Certificate/ Preferred
Region Email address Contact Person Phone Number Website
Program Service provider
地區 电邮地址 联络人 电话号码 网站
证书/评估 服务供应商
BV All countries Riki.Wang@bureauveritas.com Riki Wang +86 20 8380 7735 https://en.bureauveritas.cn/
BEPI
SGS All countries nina-lj.Liu@sgs.com Ms Nina Liu +86 0755 25328888 Ext. 6643 https://www.sgsgroup.com.cn/

TUV Rheinland All countries cynthia.cheng@tuv.com Cynthia Cheng +852 2192 1943 https://www.tuv.com/
ISO14001
SGS All countries nina-lj.Liu@sgs.com Ms Nina Liu +86 0755 25328888 Ext. 6643 https://www.sgsgroup.com.cn/

SGS All countries nina-lj.Liu@sgs.com Ms Nina Liu +86 0755 25328888 Ext. 6643 https://www.sgsgroup.com.cn/
Higg FEM
Intertek All countries shinning.li@intertek.com Shinning Li +86-755-2602 0869 https://www.intertek.com.cn/

Hohenstein All countries Y.woelki@hohenstein.de Yvonne Woelki +49 7143 271 116 https://www.hohenstein.com/en/
STeP
Testex All countries Coline.leung@testex.com Coline Leung +852 2368 1718 https://www.testex.com/en/

For information on other regions or 3rd party audit firms, please feel free to contact: certificatemanagement@lidl.com.hk
REQUEST FOR QUOTATION

WE NEED YOUR BEST OFFERS:


PRICE AND PRODUCT!

BASED ON OUR REQUESTS BUT ALSO YOUR OWN PROPOSALS


Every 3 months you will receive product requests from Lidl. We are also interested to get new product ideas from our suppliers
Then our best suppliers propose their best offers!
As soon as we receive our briefings, you can submit your proposals to our
Each product belongs to a specific promotion week under a particular theme Product Development Team.
(e.g. “Back to School”, “Easter”, “Cocktail Party”, etc.).
Product Development & Merchandising Teams will review your offer and
All existing and new suppliers are invited to quote & provide min. 2 samples assess the chance to be selected by Lidl International. If positive, we will ask
to Lidl Asia. you to provide samples and all the required product information shortly after.
Run Control Panel Offer Date 25-Apr-18

Your offer price MUST include below conditions:


- Price validity: 6 months for order placement and at least 12 months for shipments
- Payment term must be L/C 45 days
- Please advise if there is any anti-dumping tax when deliver to Europe / US
- Make sure the logistic data should be accurate and not more than 5% deviation
- Check if the product is open to sell in Europe / US market or not

All offers made by suppliers should be 100% accurate from product and
- Check if there is any patent infringement base on your factory experience (Low / Medium / High)

PRODUCT DETAILS
FOB Unit price
Packing method
Social Compliance status (indidate (per piece or Unit (PCS Product net weight Material (e.g. Product Feature / Assortment FOB port of Anti-Dumping Tax
Presentation Title Lidl ID Factory ID Factory name Project Nr. Theme Colors / Pantones Product photo Description + Product Specification Product size (cm) (e.g. 4C color box, MOQ HS code Duty (%) Certificate (if any) (e.g. FSC) Open to Sell in Europe (Yes / No)
BSCI yes/no and grade) per set?) in / SETS) (KG) plywood, PP, PET) breakdown (if any) Loading (%) if any
B/W sticker)
USD

Set of 3 BBQ Round grilling ring with spike


Can barbecue apples, pears, onions and even ca. L7.8 x W7.8 x
1807 BBQ ARe_1807_17 11802 Xinlong BSCI Yes (Expired) 1807_0388 15.1 - Barbecue Expert 1 Silver 3.800 sets ca. 111.8g SUS 430 Color box Yantian, China 100000 7323 99 00 90 3.20% LFGB
whole cabbages with surprising ease and H6.0 cm

logistical perspectives, and patent-free for the EU & US markets.


efficiency.

1807 kichenware FeS_1807_02 Potter BSCI Yes 1807_0024 15.1 - Kitchen (Useful helper)
Food vacuum clips
Keep snack crisp and food fresh longer
100% air tight to keep food away from mildew
and germs
1.870 sets
(12 cm(S) x 6 + 25
cm (L) x 6 )
ca. 128g PP
Color box for 12
pcs set.
60 boxes in one
PDQ.
Yantian, China 100000 392410000 6.50% Yes
Quotation form +
Samples (if required)
A. ca. L22 x W16.6
Lunch to go assortment: x H8.9 cm
A. ca. 260g
A. Rectangular box with compartments B. ca. L18.5 x PP + Silicone seal
1807 kichenware FeS_1807_07 13554 LISI BSCI Yes 1807_0317 16.1 - Leisure (Picnic) 1.670 sets B. ca. 289g 4C Color Sleeve Ningbo, China 100000 392410000 6.50% LFGB, Leakage proof, dishwasher safe Yes
B. Square box with salad dresser box W18.5 x H11 cm ring
C. ca. 200g
C. Square sandwich box C. ca. L19 x W19 x
H8.4cm

Drinking bottle to go: ca. 700ml


Removable top for adding lemon/ice cubes ca. Dia.7.5 x H26.5
1807 kichenware FeS_1807_09 11629 Koodee BSCI Yes 1807_0319 16.1 - Leisure (Picnic) 1.050 pc ca. 85g each PS 4C Color box Yantian, China 100000 392410000 6.50% LFGB, Leakage proof, dishwasher safe
Fits for beverage holders standard cm
Leakage proof

Drinking bottle to go: ca. 700ml


Removable top for adding lemon/ice cubes ca. Dia.7.5 x H26.5
1807 kichenware FeS_1807_09 11629 Koodee BSCI Yes 1807_0319 16.1 - Leisure (Picnic) 1.450 pc ca. 85g each Tritan 4C Color box Yantian, China 100000 392410000 6.50% LFGB, Leakage proof, dishwasher safe
Fits for beverage holders standard cm
Leakage proof
WORK WITH US

HOW DO I QUOTE CORRECTLY


QUESTIONS & ANSWERS
Q. I AM A LIDL ASIA SUPPLIER, CAN I OFFER THE SAME ITEMS TO TRADERS/IMPORTERS OF LIDL?
PRICING QUOTATIONS A. No! You are only allowed to quote to Lidl Asia.
Q. DOES LIDL ASIA PAY TOOLING COSTS SEPARATELY?
A. No, please include your costs into your FOB price.
Price validity: 6 months for order placement and min. 12 months for shipment.
Payment terms: TT 60 days for all countries except Bangladesh. L/C 60 days for ARTWORK, PACKAGING & PRICING
Bangladesh suppliers (L/C cost at supplier’s side).
Testing costs: supplier needs to provide pre-production and mass production OVER 90% OF OUR PRODUCTS ARE LABELED WITH OUR OWN LIDL BRANDS
samples to Lidl Asia. Lidl Asia bears all the costs of the first testing and inspections. Suppliers need to be 100% accurate on the product & packaging
Only pre-test / re-test / re-inspection costs are suppliers’ own costs specifications when quoting to us.
(only Hardgoods: Charge is accounted as 2% fee in the FOB price), please advise if Lidl provides packaging artwork in printable PDF files. Suppliers are
there is any specific import tax when delivering to the EU / US market. responsible for mass printing and film charges.
Logistic data accuracy: make sure the logistic data information is 100% accurate All product packaging must be made of environmental friendly
with our orders. materials either FSC certified and/or recycled paper required - GD2
Quality: ensure bulk in good quality and workmanship. (WLC/CCNB), GT1/2 (WLC).
Patents: ensure that the product is open to sell in the EU / US market. Check if Suppliers need to use FSC certified paper from designated carton
there is any patent infringement based on your experience. suppliers for outer cartons.
Samples: you will be asked to submit samples. The merchandising teams will inform Polyvinylchloride (PVC) & Black Colored plastics are not allowed in any
you on the number of samples required. This will be at the suppliers’ cost form of packaging.
(incl. freight costs). Polyamide (PA) and Polystyrene (PS) will be progressively banned.
Delivery: ensure on time delivery when quoting. QUESTIONS & ANSWERS
QUESTIONS & ANSWERS
Spare parts: Contact the merchandising team upon reception of PO to clarify the Q. WHERE DO I GET ALL MY PACKAGING INFORMATION?
percentage of spare parts or spare units required. A. From our sourcing and merchandising teams.
OUR EXPECTATIONS

DELIVERABLES OF OUR SUPPLIERS

COUNTRIES
SELECTION
THEMES & PRODUCTS OFFERS FINAL PRE- DELIVERIES
HALL PRODUCTION
BRIEFINGS PREPARATION NEGO PROD
GO or NO GO
Final volumes

• Develop our requested products (“repeater items” or new) • Finalize price negotiation • Attend project kick-off meeting
• Suggest your own new product proposals • Ensure production capacity • Arrange samples (cosmetic & testing or confirmations)
• Arrange samples and complete product information • Ensure Lidl requirements are met • Secure production schedule
• Develop samples and send quotes • Assure quality control during production
• Deliver goods on time
WORK WITH US

QUALITY FOR HARDGOODS


QUALITY PRODUCTION SUPPORT
LIDL IS HIGHLY COMMITTED ON THE QUALITY LIDL ASIA REQUIRES FULL TRANSPARENCY OF YOUR
OF ITS PRODUCTS, IT IS A MUST! PRODUCTION PREPARATION AND STATUS. FOR THIS,
WE HAVE DIFFERENT CONTROL POINTS:
We work with several renowned testing Labs: ITS, BV, TÜVR,
TÜV Süd and SGS. Each product category must follow our “Factory Technical Evaluation” (FTE) to be performed by Lidl Asia to make
Product Technical Specifications (PTS). sure your factory meets our expectations.

Suppliers must provide all required information to our “PP” Meetings will be conducted in your factory to allow mass production
3rd party partners for them to perform requested tests. to start. We will verify the entire production schedule to ensure
that the level of quality is understood, confirm production control points
Our QA team will support the factory at an early stage of and and anticipate potential issues.
throughout the projects.
TESTINGS
PRE-PRODUCTION / PP SAMPLE EUG Test (Compliance Testing File) at 0-10% or 500 Pcs – Full Lab Test
PRE-PRODUCTION Qualification Test
PRODUCTION
30% Stage selected test + Spot tests (anytime) - No Full Lab Test

1 2 3 4 5

COSMETIC SAMPLE CONFIRMATION SIGNED SAMPLE TO FACTORY PILOT RUN INSPECTIONS SHIPMENT RELEASE
colors and design approval by Lidl International will be used as a reference sample MASS PRODUCTION STARTS 30 % PSI at > 30% Stage – Lidl Asia
during mass production 100 % PSI at 100% Stage – Lidl Asia
+ Random inspections (anytime) + (DUPRO / PRE-FINAL)
WORK WITH US

QUALITY FOR TEXTILES


QUALITY PRODUCTION SUPPORT
LIDL IS HIGHLY COMMITTED ON THE QUALITY LIDL ASIA REQUIRES FULL TRANSPARENCY OF YOUR
OF ITS PRODUCTS, IT IS A MUST! PRODUCTION PREPARATION AND STATUS. FOR THIS,
WE HAVE DIFFERENT CONTROL POINTS:
We work with several renowned testing Labs: Hohenstein, SGS and PFI.
“Factory Technical Evaluation” (FTE) to be performed by Lidl Asia to make
Suppliers provide all required sample and certificates to Lidl Asia or 3rd party sure your factory meets our expectations.
partners for them to perform requested tests.
“PP” Meetings will be conducted in your factory to allow mass production
Our QA team will support the factory at an early stage of and throughout the to start. We will verify the entire production schedule to ensure
projects. that the level of quality is understood, confirm production control points
and anticipate potential issues.
Each product category must follow our Supplementary Quality Guidelines.
TESTING – According to OWIM Instruction
SIZE SET SAMPLE 30% CHEM: Full or Partial Chem Test
PRE-PRODUCTION 3rd party fitting trial in Germany PRODUCTION 30% FIT: Fit Test depending on Articles

1 2 3 4 5

CONFIRMATION SAMPLE CONFIRMATION SEALED PRE-PRODUCTION SAMPLE TO FACTORY TESTING - EUG INSPECTIONS SHIPMENT RELEASE
colors and design approval by Lidl International will be used as a reference sample 0-10% Stage: Documents check 30% PSI at > 30% Stage – Lidl Asia
during mass production and inspection + partial testing 100% PSI at 100% Stage – Lidl Asia or Inspection Center or 3rd Party (US)
+ Random inspections (DUPRO / PRE-FINAL)
WORK WITH US

COMPLIANCE & SUSTAINABILITY


Key Anti-Fraud Principles of Lidl’s Compliance & Sustainability Guideline

All unethical behaviour, such as documentation falsification, or intentional misrepresentation, is considered a Critical Non-Compliance
(CNC), while bribery is Zero Tolerance under Lidl’s C&S Guideline
Lidl reserves the right to terminate a business relationship in the event of a failure to comply with Lidl’s C&S Guideline requirements

For overview about our Compliance and contact details, please visit : https://lidl.asia/compliance

BKMS Grievance system

Grievance Systems are essential to the identification and the mitigation of potential risk areas.
LIDL has recently rolled out a global and independent Grievance Management System allowing our supply chain partners to reach
out to LIDL directly and report their grievance

Lidl’s business partners will receive documents of the grievance system and will be requested to post in factory areas so that
employees can access to it

To access to Confidential online reporting system (BKMS), please visit: www.bkms-system.net/lidl


WHY SHOULD WE COOPERATE?

ADVANTAGES OF WORKING WITH


LIDL ASIA
VOLUMES Lidl is a consolidated organization gathering large volume orders

PARTNERSHIP Develop long-term partnerships in multiple product categories

DIRECT Have direct access to Lidl network

INNOVATION Collaborate with a retailer which launches hundreds of new items every year

PASSION Work with an organization of passionate colleagues


TEXTILES A SELECTION OF OUR TEXTILES BRANDS

Our specialized team identifies upcoming market – Men’s underwear


trends and ensures that we deliver textile products
customers love. – Sportswear

Ladieswear Lingerie
– Ladies’ lingerie
Menswear Hosiery
Kidswear Shoes – Ladieswear
Sportswear
Home textiles – Infant apparel

– Children’s apparel

HARDGOODS A SELECTION OF OUR HARDGOODS BRANDS

Always focused on quality, we provide both functional – Kitchen products


and decorative products to customers around the world,
in line with shifting consumer behaviors and needs. – DIY tools
Electronics and electrical products
– Furniture
Power tools and home tools
Hi-tech goods – Decorative items
Small domestic appliances
Household products and home accessories – Power tools and accessories
Furniture
Sports equipment – Lighting
Watches
– Office supplies and furniture
Office supplies
Toys – Consumer electronics
CORPORATE SOCIAL
RESPONSIBILITY
WE BELIEVE THAT WE HAVE A RESPONSIBILITY
TO OUR SOCIETY, COMMUNITIES AND THE ENVIRONMENT.

Since 2014 we have been awarded the title of Caring Company by The Hong Kong Council of Social
Service,
in recognition of our volunteer and charity contributions and care for our employees and the environment.

We are dedicated to improving ourselves in all areas of our business. From caring for our environment and
supporting our communities, to protecting the wellbeing of our employees and working to ensure our
products are safe and ethical, we are committed to doing the best we can, every time.
CARING FOR THE
ENVIRONMENT
WE ARE DRIVEN TO MAKE OUR
BUSINESS AS GREEN AS POSSIBLE.
LOOP – LOW-CARBON OFFICE
OPERATION PROGRAMME
We embrace opportunities to improve our operations to be more
sustainable and responsible wherever possible. Since 2014, our office in West Kowloon is LOOP certified as
part of the Low-Carbon Office Operation Programme to
reduce carbon emissions.

WWF SILVER MEMBER


As a WWF Silver Member, we have pledged to support
initiatives to protect our planet and its animals.

GREEN CARBON AUDIT


We joined the Hong Kong Government’s Green Carbon Audit
Programme to support the reduction of greenhouse gas
emissions, increase energy efficiency and promote
conservation within the company.
PROTECTING
OUR PEOPLE
OUR PEOPLE ARE THE REASON FOR OUR SUCCESS.
WE CARE FOR THEM ABOVE ALL ELSE AND HAVE
ZERO-TOLERANCE POLICIES AND A STRONG CODE OF
CONDUCT TO PROTECT OUR EMPLOYEES.

Anti-discrimination, anti-harassment, anti-corruption, anti-fraud,


anti-bribery and zero-tolerance policies are in place, as well as
data protection regulations and conflict of interest protocols.

Our corporate governance, management culture and principles are


focused on ensuring the wellbeing of our talented and hardworking
people and in compliance with the applicable law. We are dedicated to
fostering a pro-family culture and work environment and have been
bestowed with the Family-Friendly Employers Award and Award for
Breastfeeding Support in Hong Kong.
SAFE AND
ETHICAL PRODUCTS
WE WORK TO ENSURE THAT THE WORKERS
MAKING OUR PRODUCTS HAVE A SAFE WORKPLACE
AND ARE TREATED WITH DIGNITY.

We also make sure to limit our environmental


footprint as much as possible in order not to
harm the planet.

We are committed to the Greenpeace Detox


campaign and aim to eliminate 17 hazardous
chemical groups for textile and shoes.

We are a BSCI-Amfori member and accept BSCI


audits, as well as SA8000 Certificate and Better
Work (ILO) Advisory Program. We have a team of
in-house experts guiding the factories to do the
remediation of their corrective action plan.
Supplier Registration

Do you manufacture great quality


products?

Are you great at what you do?

Become a Lidl Business Partner


To become a Lidl Asia Supplier,
you need to access Vendor Information Portal (VIP) for registration

Access the Vendor Information Portal (VIP) via


Input the URL https://vip.lidl.com or
Scan the QR code from Lidl Asia business
cards you acquired
In the main page, fill in
• FIRST NAME
• LAST NAME
• YOUR COMPANY NAME
• YOUR WORK EMAIL
✓ Tick the checkbox “I’m not a robot.”
✓ Click APPLY TO BECOME A LIDL VENDOR
button

You will need your email address and PIN to


resume your saved application

After your application, we will come back to you


as soon as possible
WHEN DO WE START?

CONTACT POINTS
COMPLIANCE SOURCING
Email: rscm@lidl.com.hk HARDGOODS

Tel: +852 3840 3600 Email: sourcing_hg@lidl.com.hk


Tel: +852 3840 3600

LINKEDIN WEBSITE SUSTAINABILITY TEXTILE


Email: sourcing@lidl.com.hk
Email: certificatemanagement@lidl.com.hk
Lidl Asia Pte. Limited Tel: +852 3840 3600
www.lidl.asia Tel: +852 3840 3600

If you have a specific request or inquiry, we are happy to help.


Lidl Asia Pte. Ltd. HQ Lidl Asia Pte. Ltd. – HK Branch
30 Pasir Panjang Road, #12-31/32 Level 25, International Commerce Centre
Mapletree Business City, Singapore 117440 1 Austin Road West, Kowloon, Hong Kong
General Line: +65 6839 1500 General Line: +852 3840 3600
Email: info@lidl.sg Email: info@lidl.com.hk

You might also like