Showing posts by: E Curb Nottus
Covid/Ovid 2020: Crisis (Mis)Management – How the World’s Leaders are Responding?
Lockdown immediately, quarantine everyone, isolate the virus? Close the borders! Go hard, go fast! Make haste slowly! Laissez-faire? Test as many as you can! Watch and wait, hold off, preserve the economy, keep people working! Half/half?Herd immunity? As the experts—both recognised and putative—come out of the woodwork, a plethora of different approaches to the 21st century’s greatest crisis are thrown up, causing ever deeper descent into confusion for those of us watching from the sidelines.
Sweden: Personal responsibility to do the right thing, fingers and toes crossed At one extreme there’s the “hands-off” non-interventionist line adopted by Sweden…”a relatively relaxed strategy, seemingly assuming that overreaction is more harmful than under-reaction” – in other words, keep calm and carry on. The Swedish government’s goal being to build up a “herd immunity” of the population to (they hope) forestall further waves of infection. The blueprint involves letting the virus spread slowly while sheltering the old and weakest elements of society until the bulk of the population become naturally immune. So schools, restaurants, bars and gyms remain open, all places that many other countries have ’hot-spotted’ as potential petri dishes (to use of the media’s current favourite buzzword in the virus crisis). Critics of the Swedish voluntary approach have stressed the risks it is exposing itself to – a danger of overwhelming the health system’s capability and precipitating large numbers of premature deaths [‘Inside Sweden’s Radically Different Approach to the Coronavirus’, (Bojan Pancevski), Wall Street Journal, 30-Mar-2020, www.wsj.com; ‘Sweden under fire for ‘relaxed’ coronavirus approach – here’s the science behind it’, The Conversation, (PW Frank & PM Nilsson), 30-Mar-2020, www.mamamia.com.au]. While Sweden persists in it’s “long game”, Sweden’s death toll from coronavirus has reached 239❈, a far-from-inconsequential figure for a small population nation like Sweden (and more than double the next highest total of fatalities in the Nordic region, that of Denmark). Not happy, Scandinavian neighbours of Sweden!
🔺 Boris in isolation – self-sacrificing crash-test dummy for the nation, gauging the coronavirus level of virulence: “taking one for the nation!” (Picture: No 10 Downing Street/AFP)
Boris, not dancing The UK government in the early stages of the crisis, along with the Netherlands, flirted with adopting Sweden’s herd immunity approach, but subsequently (and belatedly) opted for lockdown. The UK number of cases and mortality rates continue to rise alarmingly (2,352 dead❈) and it’s citizens can draw little reassurance from the antics of its erratic Conservative Party leader Boris Johnson. At the onset the insouciant Johnson downplayed the epidemic and declared that he was all for shaking hands with as many people as he could (his Churchillian bluff AKA confidence-building strategy?) This didn’t prove a good move, personally for the prime minister, as he was soon struck down with the virus (recalling wistfully whilst in self-quarantine that shaking hands with some people at a hospital, who with hindsight probably had coronavirus, probably wasn’t a good idea).
(Photo: AP)
China’s southern neighbours Taiwan and Singapore both got early warning of the outbreak in China, which helped them get an early start on their countries’ protective measures. Taiwan, at the get-go, posted health workers at airports – incoming passengers from Wuhan (the virus’ origin-point) were checked for symptoms before they exited the planes. Singapore on January 3, inside four days of China’s notification to WHO of an unknown virus, which later was confirmed to be the COVID pathogen, was temperature screening passengers arriving from Wuhan. Taiwan and Singapore were also in a better state of preparedness (than say northern Asian countries bordering China like South Korea and Japan which initially struggled with their respective outbreaks) The two southeast Asian micro-states had learned invaluable lessons from the 2003 SARS and the 2009 swine epidemics. That the Singaporean and Taiwanese governments were upfront and transparent with the public, also got everyone in society quickly on board with the “national project”. The death toll for both Taiwan and Singapore stands well short of double figures❈ [‘How Taiwan and Singapore Have Contained the Coronavirus’, (Chloe Hadavas), Slate, 11-Mar-2020, www.slate.com].
(Photo: AP)
Continental contrast The European comparison of how different countries have handled the virus focuses largely on a Germany v Italy correlation – unfortunately to the great disadvantage of the latter. Angela Merkel and Germany have been able to restrict their coronavirus fatalities thus far to 931❈, compared to Italy’s out-of-control, frighteningly catastrophic 13,155 deaths❈. The reasons for the size of discrepancy are manifold. First as with Taiwan Germany was ready at the outset, comparatively Italy wasn’t. Germany went to social distancing and lockdown early while Italy prevaricated, and Italy was also slow to seal it’s borders. Anticipation paid off for Germany, it had developed a favourable type of test for the virus before it hit. They then tested fast and widely. Italy was slower off the mark, and it’s testing regime was (and is) half or less that of Germany’s capacity. Integral to Germany’s edge is its medical infrastructure, the ratios are stark: Germany has 33.9 hospital beds for every 100,000 of population, cf. Italy, only 8.6 per 100,000. So, by the time Italy got its testing into full swing, the country was swamped with way too many corona-patients requiring critical and urgent treatment. Italy’s age demographic, skewed towards the geriatric end of the scale (second oldest population in the world after Japan) was also a decisive factor in the extremely high mortality rates it has experienced [‘How one country got months ahead of its neighbours in coronavirus fight’, (AP), Yahoo!News, 02-Apr-2020].
Life on Planet Trump In the US a reasonable expectation the citizens of the world’s leading democratic-capitalist state might normally entertain in such a disastrous crisis, would be to have mature, insightful national leadership. Instead, they have Trump! Countless reems of pages of news-copy have been wasted on the US president, but to briefly summarise his Covid-19 performance: at the start in January we got the glib and blasé Trump – “the virus was one person coming from China and we’ve got it under control”; by February it was, we had “pretty much shut it down” (somehow he thought it was over before it had hardly started taking root!?!); next he opined “warm weather will kill it in April”; “the numbers are going down” (said after public health officials had advised the White House that the virus was spreading); by late February it was “we have lost nobody to coronavirus” (there had already been US fatalities). In March Trump, rebuked for repeatedly spreading misinformation, resorted to “it’s the Democrats’ new hoax”; then, “it will disappear one day – like a miracle!” which perhaps demonstrates one of Trump’s rare threads of consistency, drawing a link to the president’s later assertion (completely tone-deaf to the message of social distancing and ignorant of realistic timeframes) that he wanted to see the churches in America full at Easter!✪ [‘Coming Soon: Donald Trump As the Hero of COVID-19”, (Richard North Patterson), The Bulwark, 23-Mar-2020, www.thebulwurk.com].
(Photo: CBS News)
Perhaps the most striking and alarming example of Trump’s off-the-cuff and off-the-rails raves is his wilful and flagrant ignoring of the professional advice of his top medical advisers, eg, “anyone who wants a test can have one” (wrong); “we’ll have vaccines relatively soon…they’re coming” (even the non-scientific layperson knows it will take at least one to one-and-a-half years to be publicly available); “we have tremendous control of the virus”, completely contradicting Dr Fauci’s starkly realistic warning that the worst is ahead of us. The consequences of Trump’s disregarding scientific truths provided by medical experts in favour of convenient misinformation has been downright dangerous. His advocacy of an unproven coronavirus treatment (chloroquine phosphate) still being scientifically reviewed was a causal factor leading to the death of a man who tried to self-medicate using the ‘treatment’.
Trump, master of the ad hominem at the lectern, recently on TV seems bored with the subject, maybe looking round for a new focus (Iran?). Trump as president takes no responsibility. When he should be uniting all the key cogs in a coherent national response to the corona-crisis which is killing hundreds of Americans every day, he has been his divisive worst, brawling with the media, attacking medical workers for supposedly hoarding supplies, shifting blame to state governors. Fortunately, governors like New York’s Andrew Cuomo, California’s Gavin Newsom and Washington’s Jay Inslee, recognising the gaping gap in leadership and the lack of support coming from the White House, have risen to the mammoth and increasingly desperate challenge facing the country and taken the lead in the crisis [‘History’s verdict on Trump will be devastating’, (Michael D’Antonio), CNN, 30-Mar-2020, www.cnn.com].
(Photo: Jeff Gritchen, Orange County Register/SCNG)
The “Trump of the Tropics” Trump’s abject performance, his “epochal incompetence” (to quote Michael D’Antonio), in the crisis, is bad enough for the risks he has exposed Americans to, but his influence as a “role model” for far-right leaders in other countries, is helping to undermine those countries’ fight against the virus. One such leader is Brazil’s authoritarian president Jair Bolsonaro who expresses profound admiration for Trump (hence his nickname above), whose skepticism for the virus’ threat Bolsonaro mirrors. Bolsonaro has publicly dismissed the coronavirus as “a little cold”, refuses to isolate and continues to attend public events, irresponsibly mingling with crowds of his supporters, shaking hands with all❖. Bolsonaro, like Trump, has tended to “flip-flop” on the epidemic, lunging erratically from urging Brazilians to show caution in avoiding transmission of the disease (do as I say, not do as I do!) to calling for an end to the quarantine restrictions and removal of the shackles on the economy.
When confronted with the danger of the virus to Brazilian society, Bolsonaro rivals Trump in loopy explanations, eg, Brazilians possess a “natural immunity” which means that they cannot be infected by diseases❅ (part of the Bolsonaro fantasy playbook!) So far, despite these unique ‘antibodies’ claimed by Bolsonaro, some 244 Brazilians have died from coronavirus❈. The Brazilian president has also exhibited the Trump trait of disbelieving the medical experts and the official statistics. When São Paulo recorded a sharp spike in deaths from the virus, Bolsonaro was quick to cast doubts on the numbers. The governors of São Paulo and Rio are two of the most vocal critics of his lax approach to the crisis, in return Bolsonaro blames the state governors for their concerted measures to halt the disease, labelling their efforts ‘criminal’ [‘Brazil’s Bolsonaro makes life-or-death coronavirus gamble’, (David Biller), Sydney Morning Herald, 29-Mar-2020, www.smh.com.au].
🔺 Bolsonaro, unsafe at any distance?
Some analysts have noted the element of political calculation in Bolsanaro’s hard line on the epidemic. The Brazilian leader’s may feel that if he can take the economy (still feeling the severe effects of the 2015/16 recession) to the next elections in good health, the voters may be less concerned about the country’s death toll from coronavirus (David Biller). Mexico’s president, López Obrador, is singing from a similar hymn-sheet as Bolsonaro. Obrador contends that the severity of the virus has been overstated, and has been quoted as saying that personally he would rely on his (lucky) amulets to keep him safe [‘In Brazil and Mexico, Leaders Downplay Dangers of Virus Outbreak’, Latino USA, 26-Mar-2020, www.latinousa.org].
🔺 President Lukashenko, national leader, sportsman, tractor enthusiast
Belarus, 2020 global sporting capital Belarus president Alexander Lukashenko is another head of state professing an admiration for the US president and similarities in style can be observed. Lukashenko has launched the small East European country on a novel path to (supposedly) combat the deadly virus – a cocktail of sport, cold, vodka and saunas. The Belarus government has vetoed lockdowns and social isolation to counter coronavirus, and it is just about the only place in the world that hasn’t discontinued sporting events. The Tokyo Olympics have been canned for 2020 but crowds still flock to football matches in Belarus. The remarkable leader himself, leading by example, recently participated in an ice hockey game. Likewise, the annual victory parade scheduled for May is still all systems go! In addition to spruking sport (and would you believe, “tractor-riding” in the countryside⊞) as antidotes to the virus, the Belarusian president recommends drinking vodka and taking saunas, whilst reassuring Belarusian citizens that God will protect the country from the global pandemic, adding the rider that Belarus’ icy cold climate will also do the job [‘“Reckless” World Leader says vodka and saunas will protect people from coronvirus’, (James Hawkins), The Mirror, 30-Mar-2020, www.mirror.co.uk].
Postscript: Crisis climate – encroaching on democratic rights? While the pandemic continues to rage, the politics don’t abate. All countries trying to restrict the movements of their citizens have enacted emergency measures to try to confine the pathogen. Most countries have closed their borders and some have legislated the power to detain people. The fear for advocates of civil liberties is that the more authoritarian states may use the new arrangements to move towards martial law. Regimes cross the globe have enacted new powers, ostensibly to protecting the public, but at the same time with the effect of protecting themselves from public and press scrutiny and accountability [‘”Coronavirus” profound threat to democracy’, (Noah Millman), The Week, 01-Apr-2020, www.theweek.com]. In Hungary the right-wing Orbán government has suspended existing laws, by-passing the parliament to allow president Viktor Orbán to rule by decree (with no end date). Thailand has taken the opportunity to censor the nation’s news media (suing and intimidating journalists who criticise the government’s handling of the crisis). Turkmenistan has taken the unusual approach to the pandemic of banning all use of the word ‘coronavirus’ by it’s citizens and state-controlled media
✧. According to Radio Free Europe‘s Turkmenistan watch group, people talking about the virus or wearing masks in public could be arrested by the authoritarian regime which claims to have had no confirmed cases of the virus…as Turkmenistan shares a border with coronavirus-ravaged Iran this claim is viewed from outside with extreme skepticism. President Berdymukhamedov✜, not to be outdone for whacky coronavirus remedies, has recommended inhaling smoke from a burning desert-region plant (Vanguard) [’For Autocrats and Others, Coronavirus Is a Chance to Grab Even More Power’, (Selma Gebrekidian), New York Times, 30-Mar- 2020, www.nytimes.com; ‘Coronavirus: The unusual ways countries are managing lockdowns’, BBC News, 01-Apr-2020, www.bbc.co.uk].
🔻 President Berdymukhamedov, safe distancing not on the agenda here! (Photo: AFP/Igor SAFIN)
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❈ as at 1000 hours, Greenwich M-T, 02-Apr-2020
◘ faced with an overwhelming dose of reality, “Flip-Flop Man” Trump has been forced to pivot 180° away from this…now the White House is acknowledging the health authorities’ dire, nightmarish predictions, (‘US predicts up to 240,000 deaths even with social distancing’, ABC News, 01-Apr-2020, www.abc.net.com.au)
✪ the secular and materialistic lifestyle Trump follows, nay revels in, contrasts conspicuously with the image he tries to sow in the minds of the American public and especially the Religious Right, of him as piously religious
❖ Bolsonaro himself has apparently tested twice for coronavirus but won’t publish the results
❅ including the notorious assertion by Bolsonaro that they “can swim in raw sewerage and not catch a thing” – in effect this is what he is doing to Brazilians with his cavalier policy
⊞ the Belarusian president was quoted as saying: “There, the tractor will heal everyone. The fields heal everyone.” (tractors are apparently something of a fetish item in Belarus!)(‘Belarusian president proposes ‘tractor’ therapy for coronavirus’, Vanguard, 16-Mar-2020, www.vanguardngr.com)
✧ Turkmenistan is ranked by Paris-based RSF (Reporters Without Borders) as the country with the least press freedom in the world
✜ Berdymukhamedov has an exalted status in Turkmenistan, being seen as the Arkadag (protector of the people)
Green Gang: Boatmen, Salt Smugglers, Secret Society, Triad and Social Organisation
The Green Gang (Qing Bang) was a Chinese form of mafia organisation based in Shànghâi, best known for their activities in the 1920s and 1930s as a web of street gangs. The career of their paramount leader, Du Yuesheng, has been well documented in a previous blog, The Emperors of Vice and Crime of Shànghâi‘s Yesteryear (February 2020). But the origins of the gang (which might be more usefully thought of as a clique) were rooted in a specific type of brotherhood associated with boatmen in the early Qing Dynasty (17th-18th centuries).
The story starts with “three sworn brothers”, Weng Yan, Qian Jian and Pan Qing, who won a contract from Emperor Yongzheng (Yinzhen) to manage the transport of grain materials on the Yellow River (Grand Canal) route in Old China. The trio went on to form an association of boatmen which utilised Luojiao principles (Buddhist sect) to attract workers. The organisation that evolved on the Canal was a kind of professional trade federation dedicated to serving the interests of it’s waterborne employees (including the use of strong-arm tactics to protect them from corrupt officials and local thugs) [Brian G Martin, The Shànghâi Green Gang: Politics and Organized Crime, 1919-1937, (1996)].
🔺 The Grand Canal
Over time, the structure took on a quasi-government character with specific departments formed to handle different functions. It also evolved into a secret society with very strict membership criteria involving a seven-year process before members would be fully admitted. The society’s activities earned the ire of the authorities and was driven underground. After experiencing disruptions in the Grand Canal trade the business eventually dissolved [‘Shanghai’s Shadowy Green Gang’, (Sun Jiahui), (The World of Chinese), 28-Aug-2015, www.theworldofchinese.com].
But the society and the boatmen adapted to the changes, segueing into the salt smuggling business in northern Jiangsu Province – in the process forming a new organisation, Anqing Daoyou (literally “Friends of the Way of Tranquility and Purity”), which was a direct forerunner to the modern Green Gang organisation (‘Shanghai’s Shadowy Green Gang’).
Green versus Red
For a brief period in the early 20th century the Green Gang shared the underworld spotlight in Shànghâi with a rival body, the Red Gang (Hong Gang)❇. In the years of the early republic the ‘Reds’ managed to establish “a complete monopoly over the illicit trade of (Shànghâi) opium” in cooperation with the Green Gang and the Big Eight Mob (the ubiquitous Green Gang boss Huang Jirong had links to the Red Gang)[‘Shanghai’s Gangs in the Early 20th Century’, (Clay Capra), 10-Dec-2018, www.umdjanus.com]. By the 1920s the ‘Greens’ by themselves were a formidable mob organisation in Shànghâi, trafficking in opium, using stand-over tactics to intimidate workers and business owners [‘The Green Gang of Shanghai’, (Pat Welsh), (China Insight), 01-Nov-2013, www.chinainsight.info].
Du and the KMT Huang (and his wife Lin Guisheng) elevated Du Yuesheng to a leadership position in Green Gang based in the French Concession area, from which he never looked back. The Green Gang formed an interesting two-way relationship with the KMT (Kuomintang), it received protection from the KMT and was given a free hand to carry on it’s various illegal business activities in Shànghâi. In return the Green Gang smuggled weapons and money (eg, opium profits) to the KMT and Chiang Kai-shek✡ co-opted Du’s Green Gang in the suppression of the communist element in Shànghâi in 1927 (up to 5,000 communist opponents of Chiang liquidated). Chiang and the Nationalist government—with only a nominal hold over the country—needed the support of local warlords and drug lords like Du as much as they needed the KMT’s imprimatur [Derks, Hans. History of the Opium Problem: The Assault on the East, Ca. 1600-1950. Vol. 105, Brill, 2012. JSTOR, www.jstor.org/stable/10.1163/j.ctv4cbhdf. Accessed 21 Feb. 2020].
🔺 Chiang Kai-shek
A secret society of gangsters and a …
The Green Gang was a criminal confederation of leviathan proportions, a Chinese Triad coordinating a wide network of individual gangs with connections to powerful and influential figures in Shànghâi. But another arm of the organisation had a social welfare role through membership of the secret societies. Peasants for example who were driven off their land and into the city could find aid in the banghui – a “mutual help group” [‘Green Gang’, www.streetsofshanghai.pbworks.com; ’History of the Opium Problem’].
Footnote: Drawing the curtain on the Green Gang With the defeat and flight of Chiang’s KMT in 1949, the Green Gang also fled Shànghâi for Hong Kong where it opened up heroin refineries, but couldn’t establish itself in the market against the stiff competition of the local drug syndicates in HK. By 1955 Qing Bang had disappeared from the scene [‘Green Gang’, Wikipedia, http://en.m.wikipedia.org/].
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❇ at one point the two gangs were allied ✡ Chiang himself may have been a member of the Green Gang during the years he lived in Shànghâi, however the evidence is hazy on this (‘Shanghai’s Shadowy Green Gang’)
The Emperors of Vice and Crime of Shànghâi‘s Yesteryear
This piece in the China Daily Show caught my eye recently…”the first season of CSI’s much-anticipated ‘Shanghai’ spin-off has been cancelled, after scriptwriters failed to take into account the East Coast city’s complete absence of crime”. It goes on to say, “plotlines involving corruption, sexual harassment and high-end ergotou[𝕒] were shelved after quality-control cadres for the State Administration of Radio Film and Television (SARFT) cited an ’insufficient suspension of disbelief’ for viewers”[𝕓].
🔺 The formula: the standard Shànghâi period crime series
This amused me, less for the satirical tone inherent in the piece (CSI detectives investigating “high level wok theft”), but because every time I switch on the television in China and flick through the drama offerings on China’s subscription network, a more than healthy proportion of the fare seems to be fixated on 1930s Shànghâi noir and underground crime gangs.
Chinese television entertainment csars of course trade on the viewing public’s nostalgia for a past time where Shànghâi pulsated to a rhythm of decadence, glamorous nightspots and ostentatious ritzy opulence, counterposed against an underbelly of sin, gangland warfare and corrupt police. While these television series, such as the popular Meng’s Palace and New Bund, are pure and typically exaggerated fictions, the sources of their invention were very real.
If the Shànghâi of the 1920s and ‘30s that we visited in the preceding blog deserves it’s glowing epithet, “the Paris of the South”, then it’s other sobriquet, “the whore of Asia”, to describe the seedy and violent underbelly of the same city, is every bit as applicable. The “freebooting capitalism” of Shànghâi in the interwar years[𝕔] and it’s rewards, spawned a wave of criminal activity with underworld bosses vying for a bigger piece of the city’s stupendous economic pie. Like the legitimate commercial powerhouses on the Bund, the gangland “Mr Big’s” were very much part of Shànghâi’s “movers and shakers”.
The Big Three? The conventional view of Shànghâi‘s criminal underworld in the Twenties and Thirties is that there were three main gang chiefs who ran most of the show. This triumvirate of crime was made up of Du Yuesheng, Huang Jinrong and Zhang Xiaolin, …of the three gang bosses (san daheng), Zhang was of lesser significance, confined to playing a secondary role to Du. The older Huang was first to attain prominence, entering the French Concession police force and rising through the ranks to become police chief. From this advantageous post the corrupt Huang could play both sides and garner a cut of the criminal profits [𝕕].
Huang—Lin—Du Huang was eventually dismissed from the FP constabulary which led to him going full-time as a criminal overlord. The sacked cop made his fortune with a scheme involving the stealing of incoming opium from the docks, which his gang then transported into Huang’s residence by a back entrance. Huang had the opium—which cost him zilch!—distributed throughout China through his Sanxin Company [‘Murder, Mayhem and Money’, (Ni Dandan), Global Times, 12-Mar-2013, www.globaltimes.cn]. It was the pockmarked Huang’s first wife (Lin Guisheng), an influential behind-the-scene figure in Shànghâi power circles, who provided the boost to the career of the third of the crime triumvirate. Madame Huang took on the young Du Yuesheng as a partner in a French Concession operation, the start of a business empire for Du which ultimately eclipsed that of her husband’s. Du’s power base and muscle was the much feared Green Gang, which numbered as many as 20,000 members at it’s zenith [‘Shanghai in the 1930s’, World History, http://world history.us].
Du and the Green Gang
“Big-eared” Du was a complex and fascinating figure in the Shànghâi underworld scene. As zongshi (grandmaster) of the local crime operation, he was ruthless in business and intimidating in method (he would despatch coffins to the houses of gangland rivals who had earned its displeasure as a grim warning). Yet he forbid members of his Qing Bang gang to violate women, the wealthy Du was generous and wrote off many debts owed him by friends. Du’s business scope was panoramic … opium dens, gambling shacks, prostitution rings strung out across the city, kidnapping, protection rackets, labour contracting, heroin and morphine labs, as well as more ‘legit’ activities. He also founded a boys’ school in the French Connection and was president of the Chinese Red Cross during the Sino-Japanese War. And, in a perverse twist, Du, having made a ‘motza’ from his cur of the proceeds of the opium monopoly, was ultimately made president of the “National Board of Opium Suppression Bureau”! [Derks, Hans. History of the Opium Problem: The Assault on the East, Ca. 1600-1950. Vol. 105, Brill, 2012. JSTOR, www.jstor.org/stable/10.1163/j.ctv4cbhdf. Accessed 21 Feb. 2020].
Du’s political ties to the Chinese republic’s political elite Du sided with Chiang Kai-shek and the Nationalists in the conflict against Mao’s communists, playing a role in the 1927 Shànghâi purge. After the Japanese invasion in 1937 Du fled to Hong Kong, a move which lost him goodwill in Shànghâi. After the war Du wanted to return to the city but was not welcomed back and died in Hong Kong exile [‘The three tycoons of gangsters’ Shanghai’, Timeout, 22-Mar-2016, www.timeoutshanghai.com].
It didn’t end in a happy story for the other two ‘tycoons’ either. When the Japanese army invaded, Xiaolin switched sides and aided the Japanese efforts to root out subversive (ie, anti-Japanese) elements in Shànghâi, making him a wanted man by the Nationalists. In 1940 he was executed by one of his own bodyguards. As for Huang, his ultimate downfall was the communists’ takeover in 1949. Stripped of his great wealth, Huang was forced to submit to “self-criticism” and take up lowly work as a street sweeper (‘The three tycoons’).
1932 Hochi map of Shànghâi🔺
A Mexican ‘godfather’ of Shanghai crime? Another name—juxtaposed against that of Du—occupied a similar senior role in the gangland power structure in Shànghâi. Carlos Garcia, a Mexican who migrated to the fabled city of the east, carved out a lucrative (illicit) business shipping Mexican tequila via Shànghâi back to prohibition-hit California. He has been depicted as the closest thing the Shànghâi underworld of the day had to a “capo di tutti capi”[𝕖]…gang boss Garcia proved indispensable in his ability to adjudicate disputes and ensure that they didn’t develop into internecine gang warfare [‘The Canidrone Tower Gang’, Paul French, (‘That’s Shanghai’), 23-Sep-2019, www.thats,mag.com].
During the 1920s and 1930s it is estimated that there was some 100,000 gangsters in Shànghâi (around three percent of the city’s population at the time) [Brian G Martin, The Shanghai Green Gang: Politics and Organized Crime, 1919-1937, (1996)]. The vice empires of Du and his ilk were built on control over the city’s prostitution, gambling and drug trade, especially opium.
The law-enforcers’ role
The city’s police, tempted by tangible graft and corruption all around, were inherently weak, explaining why Shànghâi fell prone to unchecked lawlessness and gangsterhood. Irredeemable “bad apples” like the discredited Huang thrived in the tainted civil police agencies of 1920s and ’30s Shànghâi. The individual carve-up of the city constabulary into three distinct and unrelated entities, added to the police’s overall inefficiency. Law enforcement suffered hugely as a result of the absence of a single, paramount city police force, making it very difficult for the police to operate strategically and cohesively to rein in the city’s countless ’villains’ [‘The Shanghai Settlements’, Wikipedia, http://en.m.wikipedia.org].
Endnote: Gangs of old Shànghâi Carlos Garcia’s key role in the city’s crime business is a reminder of the importance of the non-Chinese element in the Shànghâi underworld. As well as Garcia, there were other “blow-ins”, characters like ’Lucky’ Jack Riley. Riley, an escaped convict from the US, “lucked-in” in a big way on settling in the inter-war East Asian crime capital. Riley succeeded in cornering the Shànghâi slot machine market (patronised heavily by the foreign military personnel in residence), and with a Jewish criminal associate, he ran from a business from Shànghâi servicing prohibition-era America’s habit for heroin. Roaming the mean streets of 1930s Shànghâi were a host of multicultural gangs—Portuguese gangs, Spanish gangs, Mexican gangs, Jewish gangs, etc—giving the cosmopolitan edge of Shànghâi another dimension [‘Those Rogue Foreigners Ruled the Streets of 1930s Shanghai’, (Seth Ferrenti), Vice Media, 22-Jun-2018, www.vice.com].
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[𝕒] a white-coloured liquor (a type of baijiu) popular in China; literally ”second pot head” [𝕓] “’CSI: Shanghai’ cancelled due to lack of crime”, (Ping’an Jiedao), China Daily Show, 20-Feb-2020, www.chinadailyshow.com [𝕔] Ferranti: 2018 [𝕕] of the several territorial police forces in Shànghâi, the French was the most corrupt – according to Bernard Wassermann, Secret War in Shanghai: Treachery, Subversion and Collaboration in the Second World War (2017, 2nd Ed.) [𝕖] ”boss of bosses”
Inter-war Shànghâi: A Cocktail of Espionage, Rapid Wealth Creation, Opulent Grandeur and Glamour—in a “United Nations“ of Competing Interests
Shànghâi by the late 1920s, and 1930s, was an exemplar of cosmopolitanism. The city’s pluralism, including a significant interracial element, made it stand out not just from the rest of a largely homogenous China, but from just about anywhere else on the globe. A key ingredient in Shànghâi‘s cosmopolitan character at this time was the trifurcation of the city. As a consequence of the city’s vicissitudes in the 19th century, Shànghâi, notwithstanding China’s retention of sovereignty over the city, was formally divided into three sections, two of which were foreign controlled.
French Concession
The smallest section was the French Concession (Fàguó zūjiè), in the puxi (west) part of the old city (roughly corresponding to the districts of Luwan and Xuhui in contemporary Shànghâi)—best known today as a prized residential location and the stylish centre of retail fashion in the city. The French, following suit from the British, extracted a concession from the territorial governors in 1849 and engaged in extra-territorial expansion over the ensuing decades. The French Concession had a consul-general appointed from Paris and maintained its own force of gendarmes.
(The SMC flag, with a motto which preached ‘togetherness’)
Shànghâi International Settlement
Originally both the British and the American Wàiguó rén (foreigners)—the Shanghailanders as they styled themselves—had their own separate concessions, but the two enclaves merged in 1863 to form the International Settlements. The international communities, in the main dominated by the British and to a lesser degree the Americans (but also comprising smaller communities of other nationalities, mainly Germans, Italians, Dutch and Danish) who had their own police and fire services. The British and American expats, when they felt that their highly lucrative interests were threatened (as was the case in the 1927 political crisis), did not hesitate to call in the British Army and the US Marines. Both the British/International and French jurisdictions relied heavily on local Chinese for the bulk of their forces [‘The Shanghai Settlements’, Wikipedia, http://en.m.wikipedia.org].
Chinese Greater Shànghâi
The third and largest section was the area given over to the Chinese themselves and run by the Chinese Municipality of Greater Shànghâi. Basically, this area surrounded most of the foreign concession territory (especially to it’s south and west) and comprised the parts of Shànghâi that the British et al and the French were not interested in, having already had their pick of the prime locations for themselves, close to and along the Bund [‘The Shanghai International Settlements’, Wiki].
(Cartography: Bert Brouwenstijn, VU University, Amsterdam)
A fourth concession, the “Japanese concession”
In effect, the large and increasing numbers of Japanese living in Shànghâi by this time (including armed garrisons), had resulted in the creation of an unofficial ”Japanese Concession”. This de facto concession was located in the Hongkew (now Hóngkôu) district of Shànghâi (just north of the Whangpoo’s (Huangpu’s) confluence with the Soochew (now Suzhou) Creek). Ultimately, after the Pearl Harbour attack, the Japanese extended its hold over the rest of Shànghâi except the French Concession which Nazi Germany allowed it’s Vichy French ‘puppet’ allies to retain (until 1943 when the Vichy were forced to hand it over to Imperial Japan).
Shànghâi, the fabled metropolis
By the early 1930s Shànghâi had established itself as one of the most exceptional and distinctively dazzling societies on earth. It’s population had hit three million (making it the fifth largest city in the world[𝕒]), of which somewhere between 50,000 and 70,000 were foreigners. The Thirties also witnesses two huge influxes of refugees into the city—European, mainly German, Jews fleeing the murderous repression of the Third Reich and reactionary White Russians fleeing Bolshevik retribution in Stalin’s Soviet Union and republics. Both of these ’stateless’ exo-groups were the fortunate beneficiaries of Shànghâi’s status as an open door city…neither passports or visas were required to enter the city [‘Shanghai in the 1930s’, World History, http://world history.us].
🔺 Sassoon’s ‘Cathay’ , a Bund icon but a slightly(sic) over-the-top self-comparison (Source: P Hibberd, The Bund Shanghai: China Faces West (2007))
Economics and architecture: A modern city
The early ‘30s, the Great Depression may have been ravaging the world but Shanghai was prospering…Shànghâi’s flourishing affluence meant rapidly made fortunes and a privileged lifestyle – for some at least within Shànghâi society…most notably and obviously for the advantaged foreigners. Businessmen such as Victor Sassoon (financier and hotelier) and the Renwick brothers (Jardine Matheson), profited from cheap local labour, laying the foundation for their fabulous stores of wealth[𝕓]. Brits like Tony Renwick and Anglophile American Stirling Fessenden also controlled the Shànghâi Municipal Council ensuring that local public policy in the Internationals’ concession would be favourable to Anglo business interests [‘Shanghai Municipal Council’, (International Settlement 1863-1941), www.links4seo.com/].
A further, external factor which allowed Shànghâi to prosper was that, unlike the rest of China which was divided up between different regional warlords, the city was monopolised by the foreign merchant class (World History). The warlords (and Republic of China leader Chang Kai-shek) were not able to penetrate this localised power base.
The Bund‘s modernity
And the wealth realised was certainly of the conspicuous kind, one glance down the Bund (Wàitān), the riverfront promenade, confirmed that. It was replete with grand financial and trading houses, hotels and nightclubs, many in elegant Art Deco or Neo-Classical style [𝕔]. The Bund symbolised the city’s new wealth and modernity – and contained Shànghâi’s version of ”Wall Street”. Shànghâi, even at this time, had more skyscrapers than anywhere outside of the US (World History). In nearby Nanking Road (now Nanjing Rd), was the commercial heart of Shànghâi, housing the leading retail merchants of the city such as the Sincere Company Ltd and Wing On. Fashion in Shànghâi echoed the city architecture’s modernity, the latest in-vogue styles were all the rage for the Shanghainese [‘Shanghai History’, Lonely Planet, www.lonelyplanet.com].
Nightlife and recreational pursuits
Shànghâi’s business nouveau rich, when they weren’t celebrating or listening to jazz music at one of the Bund’s many nightclubs, Ciro’s, Casanova’s, the Paramount Dance Hall or at the Canidrome Ballroom in the French Concession (originally a greyhound racing track!), could often be found at the Shànghâi Jockey Club racecourse betting along with thousands of others, Chinese and foreigners, on “the strange little Mongolian ponies” especially imported for racing (World History).
Espionage in Shànghâi: something of a free-for-all
With so many different nationalities in Shànghâi at the same time, all with competing and vested interests, it is hardly surprising that the city was a hotbed of espionage especially as the Thirties drew on inexorably towards world war. Spies and counter-spies abounded…most of the main players were actively working on the ground (or under it) in Shànghâi at this juncture – the British Secret Intelligence Service (MI6), as well intelligence units from Russia, Japan, France, Germany and the US [Bernard Wassermann, Secret War in Shanghai: Treachery, Subversion and Collaboration in the Second World War (2017, 2nd Ed.)].
In the next blog piece I will turn my attention to the other, seamier side of the Shànghâi story of the interwar period – the city’s association, you might say preoccupation, with sin and crime, another face of Shànghâi’s decadence in the Twenties and the Thirties.
Footnote: Shànghâi, location, location … Foreign trading powers like the British had initially preferred the port of Canton[𝕕] to Shànghâi, but by the late 19th century the latter had become the big trading nations’ principal “treaty port” in the Far East. Shànghâi‘s geographical position was fundamental to its eventual prominence: it had become by this time “the central clearinghouse of waterborne trade between the entire Yangtse River system and the rest of the world”, accounting for 50% of China’s foreign trade. It’s port comprising 35 miles of wharves could accommodate >170 ships and 500 sea-going junks at a time (Wassermann).
Canidrome Ballroom🔺(“canine track”)
⟻⟼⟻⟼⟻⟼⟻⟼⟻⟼⟻⟼⟻⟼⟻⟼⟻⟼⟻⟼⟻⟼⟻⟼⟼⟻⟼⟻⟼⟼⟻⟼⟻⟼
[𝕒] behind London, New York, Paris and Berlin
[𝕓] the wealth of the Shanghai foreign elite had its genesis in the aftermath of the Opium Wars. The European and North American powers used the springboard of the “unequal treaties” to extend their existing privileges to their countries’ merchant classes. Within the designated enclaves foreigners could carry out their business in accord with their own laws, free from Chinese taxes and with the added bonus that the Chinese courts and bureaucracy couldn’t interfere with or impede their commercial activities (Wassermann).
[𝕔] the line-up on the Bund included the Jardine Matheson Building ( early opium traders), Sassoon House, (Standard) Chartered Bank, H & S Bank (now HSBC), Union Building, APC Club, the Shànghâi Club, the Cathay Hotel, Paramount Dance Hall and the French, US, German and British consulates
[𝕕] modern day Guangzhou
Aldiland – from a Small-Town German Corner Store to World-wide Supermarket Discount Kings (Part II)
A few months ago Channel Five screened a documentary on the German supermarket giant (‘Inside Aldi: Britain’s Biggest Budget Supermarket’). The doco was laced liberally with interviews of Aldi senior managers, all waxing lyrical about their ‘enlightened’ employer and the company’s “win-win” virtues for everybody, which made the program feel uncomfortably like a commercial promotional video at times. Nonetheless, the doco did unearth an interesting back story, that of the supermarket emporium’s evolution and it’s founder-brothers who emerged out of the ruins of war-time Germany to steer their fledgling company to it’s eventual lofty perch as an much envied international discount supermarket chain.
🔺 an early Albrecht store displaying Karl’s name with plenty of Spirituosen (alcohol) and Lebensmittel (food) in the display windows (Photo: www.news.com.au)
The seed of Aldi as we know it today has it’s roots in Essen, Western Germany, in 1913. Anna Albrecht, the wife of a miner, started a small grocery store in the suburb of Schonnebeck as a sideline. After serving in the German Wehrmacht in WWII, Karl and Theo Albrecht, Anna’s sons, took over their mother’s business, which they initially named Albrecht KG. During the formative first years, Karl for a time operated some stores solo (under the name “Karl Albrecht Lebensmittel”).
The Albrecht brothers concentrated on the Ruhr area of Germany at first, and then expanded rapidly across West Germany over the next 15 years. By 1960 Albrecht KG had amassed 300 shops in the Bundesrepublik and had a yearly cash flow of DM90 million. A factor contributing to the Albrecht stores’ early popularity and success was it’s novel approach to tax rebates from purchases. Instead of following the business norm of making customers collect stamps before they qualified for the 3% rebate, the brothers subtracted the tax from the price before sale, a radical idea and an ingeniously simple one which undercut their rivals’ bottom price. Aldi, as it was soon to be known, was on it’s way to revolutionising the low-cost grocery trade.
🔻 Theo (L), Karl (R)
(Source: www.broadview.tv)
Sibling rivalry: Splitting of the ‘atom’ in two 1960 was a momentous year in the history of Aldi. The two brothers fell out, apparently over whether or not to sell cigarettes in Albrecht Discounts, and decided to divide the company into two separate entities➊. With a new, shorter, snappy name, ‘Aldi’, derived from the first two letters of their family name and the ‘Di’ from Diskont (Discounts), the company split into two – Aldi Nord (North) and Aldi Süd (South). At this time, as Aldi was an intra-West Germany operation only, the division was between the north (Theo’s domain) and the south (Karl’s domain) of the country. The geographical border separating Aldi Nord and Süd is known as the Aldi-Aquator (‘equator’). Aldi, after the schism, continued to grow, the brothers’ insistence on stocking only popular items, cut down inefficiencies and proved profitable.
🔺 Aldi’s first German store (in the “North sector”)
A store displaying both names, Albrecht and Aldi 🔻 (Photo: Getty)
By 1967 the first international growth steps were taken with the acquisition of Austrian grocer Hofer by Aldi South. As Aldi expanded elsewhere the arrangement between the brothers divied up the world thus (with a few later variations): Aldi South’s jurisdiction would entail Austria and the English-speaking countries, whereas Aldi North would operate in Germany and the rest of Europe. Netherlands followed in 1973, and in 1976 Aldi South made its first incursions into the US. The US became the only market penetrated by both arms of the Aldi empire when Aldi North acquired the US Trader Joe’s chain. Britain came into the Aldi South fold in 1990. Aldi South has been particularly aggressive in it’s drive for store expansion in both the US and Britain. The retailer has upward of 2,000 stores in 36 states across the US and in 2017 announced plans to add 900 more by 2022➋.
🔻 Trader Joe’s, Amherst, NY
Aldi found the highly-competitive (and crowded) UK grocery field initially hard to penetrate, coming up against well-established market leaders Tesco, Asda, Sainsbury’s and Morrisons. By the 2010s however it was making exponential inroads into the Brits’ grocery market…by October 2013 it had 300 stores and doubled that by 2016, with new stores opening at the rate of one a week! Aldi South’s stated goal is to reach the 1,000 mark by 2022. At this rate it is looming as a genuine threat to the above “Big Four” Supermarket chains.
🔻 Aldi Long Eaton store (int) in Derbyshire (Photo: www.nottinghampost.com)
Aldi global expansion intensified after the collapse of the Eastern Bloc system in 1989 and has experienced rapid growth in the 21st century. Since the 1990s Aldi has moved into Australia, Belgium, Denmark, France, Hungary, Ireland, Portugal, Slovenia, Spain and Switzerland. In 2019 it made another market quantum leap, opening two pilot stores in Shanghai, China➌.
🔺 The Albrecht brothers‘ carve-up of the world map (Theo plays black, Karl orange)
Counting the combined Aldi stores operating in Germany by both Nord and Süd (about 4,100 stores), there are over 8,000 stores in Europe as a whole (more counting the Hofer chain). All up, the reach of the Aldi retail tentacle worldwide accounts for 10,000 to 12,000 stores, with revenue (2010) of €53 billion. An international supermarket success story with nary a blot on it’s copybook – with one exception. In 2008 Aldi South invested an estimated €800 million in Greece but after only two years operating, it had to pull the plug on it’s 38 stores in the ancient land of the Olympiad. Nothing substantial divulged as to motive (par for the course for Aldi), but apparently the Aldi board of management was frightened off by the “informal business practices” prevalent in Greece (transparently code for government/business corruption)➍.
🔺 Theo in 1971, following his misadventure (Photo: Getty)
Endnote: The saga of the reclusive co-founders (“the brothers frugal”) Theo and big brother Karl were never your stereotypical, über-rich CEOs, bobbing up everywhere, constantly in the media spotlight, being snapped for glossy mags gratuitously showing off their latest flashy, expensive car or girlfriend. That was not the brothers’ ‘bag’ – for in business and in personal lifestyles their thriftiness was legendary. But after 1971 the Albrechts’ customary muted behaviour reached a whole new level. That year, the brothers’ extraordinary wealth came back to haunt them➎. Theo was kidnapped at gunpoint and held hostage for seventeen days. The younger brother was released on the payment of a ransom – after Theo had haggled with his captors over the amount demanded! Theo later tried to claim the nearly US$3 million Aldi North had to fork out for his release as a tax deduction business expense! Theo’s ordeal profoundly affected both brothers, they became even more reclusive and secretive in their personal lives and movements (no interviews or public statements, hardly any photos of them together or separately after 1971 exist). Eternally vigilant thereafter, both brothers reportedly would drive home from work, separately, by different routes each day. The brothers Albrecht, having profoundly changed “German food culture and consumption mentality” forever, semi-retired to a remote island in the North Sea in their eighties to pursue the hobbies of golf, orchid-growing and collecting old typewriters (very old school typical of them).
🔺 Island of Föhr off the Holstein Coast, where the supermarket entrepreneur brothers beavered away on their personal hobbies during much of their twilight years (Photo: www.tourism.de)
∈ওওওওওওওওওওওওওওওওওওওওওওওওওওওওওওওও∋
➊ although the separation wasn’t legally finalised until 1966
➋ German supermarket retail discounter Lidl—a copycat competitor to Aldi utilising the Aldi business model as a lodestar to chart it’s own course to retail riches —followed its path into the US market in 2017
➌ with concessions made for Chinese consumer buying-preferences based on online testing via Alibaba’s Tmall
➍ no doubt to Aldi’s chagrin, Lidl stores in Greece by comparison are apparently thriving
➎ they were reputed to be the richest men in Germany
❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖
Articles and sites referred to:
‘The History of Aldi: The Tale of Two Corporations with the Same Name’, (Team S4RB), 13-Jun-2017, www.blog.s4rb.com
‘Inside ALDI’s first two pilot stores in China’, (10-Jun-2019), Shanghai’s.ist
‘Aldi founder became recluse after family kidnapping’, Albrecht obituary,
‘Aldi’, Wikipedia, http://en.m.Wikipedia.org
‘Aldi quits Greece’, German Retail Blog, 23-Jul-2010, www.german-retail-blog.com
‘Grocery chain Aldi to open another 900 stores in U.S.’, (Zlati Meyer), USA Today, 13-Jun-2017, www.usatoday.com
‘The Aldi Story – Karl and Theo Albrecht’, (2014 documentary), www.broadview.tv
‘Secrets of store success: Why Aldi is winning the retail battle’, (Alison Kirker), Sunday Post, 19-Feb-2018, www.sundaypost.com
Aldiland – from a Small-Town German Corner Store to World-wide Supermarket Discount Kings (Part I)
Anyone who’s ever walked into an Aldi supermarket would notice the difference from your established, big-name chain supermarket. For a start, in your mega-‘market you would expect to see palettes lying out the back in the loading dock, NOT on the aisle floors in the middle of the store. Perched on the Aldi palettes are groceries and other goods in their original cardboard boxes. Aldi has a small shop-fit budget, it doesn’t spend money on installing fancy shelving, it’s stores typify the “no frills store format”, which simply offers, as it’s advertising spiel announces, “Everyday low prices”. Minimalism is one of the standard Aldi store’s by-words. The checkout area tells a similar story. Shoppers line up their purchases on a long counter which gets shunted down to the cashier. The area of the till itself is small, minute even, the whole thing is streamlined for speed and ease of transacting. And you won’t find a cornucopia of either choice or types of products in Aldi’s.
The key to retail success Sticking to the basis is a large part of the Aldi formula. The supermarket stocks less than 2,000 items…compare this to your average Coles or Woolies supermarket which typically stocks upward of 40,000 items! Looking for some Foie de gras or that special Russian black caviar, no, you won’t find these here. Aldi’s product base resides on what they call Private brand items➀. Smaller concentration of staple products + purchase in high quantities = lower prices for the customers. Although that said, Aldi also offers up to the trolly-pushing punters what it calls “Weekly Special Offers”. Located in the middle aisles—what Aldi cutely calls its “Treasure Aisle” (get it?)—are a diverse range of merchandise, some of which might be in the luxury category, Alpine snow suits and hiking tents, tools for the house handy-person, electronics, European chocolates, right through to the more peculiarly exotic pet pampering products like dog sofas and cat caves➁. All of which are seriously cheap.
🔺 from “The Book of Aldi”
Aldi eschews the “nice shopping experience”, customer service is not great➂. The store’s mission, once the shoppers have made their selections, is to shuffle them through as rapidly as possible, hence the streamlined checkout. Shoppers are ‘encouraged‘ (by the scarcity of space) and the requirement to self-pack to quickly move their goods to the back bench to pack them. Aldi doesn’t have self-serve checkouts or ‘fast’ minimum-item lanes, so inevitably there are queues because of popularity…as a consequence sometimes patience and timing are supreme virtues.
When the last item has been taken from a carton on the palette, a shop assistant will simply replace it with a new carton. This is time-efficient, saving the store staff from having to constantly restock the shelves. And when it comes to personnel on the ground, Aldi certainly have leaner staffing structures than the “Coles-worths” and Tesco’s of this world. This has prompted claims that the German employer puts unrealistic time-pressures on the reduced number of store staff to move the palettes into their point-of-sale position and complete other store-related tasks. When the stores close at 8pm or whatever the local time applicable, the shop attendants and cashiers turn into cleaners and spend the next hour getting the store spotless. There have been allegations (denied by Aldi) that it makes staff in some regions arrive 15 minutes before start-time to check the stock level without being paid. And of course it’s widely known that Aldi have consistently been notoriously anti-union in its staffing management practices➃.
Aldi stores don’t include the extraneous auxiliary facilities regularly found in other larger mainstream supermarkets and hypermarkets—no in-store banking/ATM machines, cafes, photo booths, pharmacies, children’s rides, toilets, etc—Aldi’s view is these add to the store’s end-cost. Instead they concentrate on the singular task of delivering groceries and other household essentials.
Aldi’s control of it’s “own brand”—which makes up a whopping 90 to 95% of what it sells—is interesting. First there’s the design, it deliberately makes the packaging on its food items look much the same as the leading manufacturers’ equivalent brands. Next, it tries to replicate the taste of these popular brands. Then Aldi invents a brand name for the product which often sounds vaguely like the well-known brand. And it apparently works – even on luxury items. To take a UK example: Many British consumers who once shopped at the upmarket Sainsbury’s and Waitrose supermarkets have been enticed by Aldi’s “Specially-Selected” luxury items – and the reason is twofold, obviously price (much cheaper than Sainsbury’s), but also because they now feel they are getting a similar-quality product (retail expert Julie McColl, Glasgow Caledonian University). As well as a recent product expansion to include luxury treats for it’s shoppers, Aldi’s move into ‘fresh’, the fruit and veg lines, has broadened it’s appeal.
Another key to Aldi being so spectacularly successfully in the supermarket game is it’s relationship to suppliers. Because of their runaway retail success they have many primary producers and manufacturers lining up to do business with them, but Aldi is well-known for driving a hard bargain with suppliers (sort of a case of “my way or the highway”). They are also clever at judging what will be efficacious – by sourcing local suppliers and advertising in the UK they have softened the German outsider element and fostered an impression among British shoppers of the big discount ‘invader’ being home-based.
Dr McColl has also drawn attention to Aldi’s recently strategy of positioning some of its new stores in towns next door to the prestigious Marks and Spencer outlets. The appeal of this being that shoppers can easily flit between the two – and avail themselves to the best of both worlds, getting their luxury items at M&S and their basics at Aldi.
The above factors, outlined, are apparently the ‘secrets’ to Aldi’s stellar success and it’s ability to offer and maintain retail prices at rock bottom in markets across the world. In part II I will tell the story of Aldi’s rise from a single grocer’s store in provincial Germany to international retail empire, and of the two publicity-shy and increasingly reclusive brothers who spearheaded the company’s seemingly unstoppable growth and expansion.
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➀ called Exclusive brands in US AldiLand
➁ pet furniture seems to be one of Aldi’s specialities
➂ or maybe I mean non-existent – staff are hard to catch, as they are usually flat out haring round the store trying to meet management’s daily schedules
➃ 200 Aldi store managers in the US filed charges against unfair labour practices (University of Huddersfield). Aldi operations in other countries have similarly been criticised for incidences where the store has adopted an authoritarian or heavy-handed line towards it’s staff
☤☤☤ ⌽ ☤☤☤
Articles, papers and sites referred to:
‘Aldi – “The No Frills Retailer”, (Peter Emsell, with contributions by Leigh Morland), Unpublished case study, University of Huddersfield (2011), www.eprints.hud.ac.uk
‘Secrets of store success: Why Aldi is winning the retail battle’, (Alison Kirker), The Sunday Post, 19-Feb-2018, www.sundaypost.com
‘Aldi’s secret for selling cheaper groceries than Wal-Mart or Trader Joe’, Business Insider, (Ashley Lutz), 09-Apr-2015, www.businessinsider.com
‘Aldi rebukes Dispatches Investigation, says it contains “selective information”‘, (Natalie Mortimer), The Drum, 10-Nov-2015, www.thedrum.com