Aotele

About Aotele

Chengdu Ottno Commercial Management Co., Ltd., operating as Aotele (Ottno), is a hard-discount retail chain founded in March 2021. The company is headquartered in Chengdu, China, and was established by founder and President, Chen Cheng. Aotele has demonstrated rapid growth, expanding its network of directly-operated stores to nearly 250 locations across the Sichuan-Chongqing region and other areas in central and western China by mid-2024.

The company operates on a hard-discount model, a strategy that involves offering goods at prices consistently lower than competitors without promotional events. Aotele's product prices are typically 10% to 30% below the market average. This business model is tailored to the 20-40 age demographic and has found success within China's consumer market, which has shown an increasing preference for high-value-for-money products. The stores, typically 200-300 square meters, are strategically located to attract their target customers.

Aotele's product strategy is centered on a curated selection of SKUs, which fosters high inventory turnover and cost efficiencies. The product mix is precisely structured, with 40% of SKUs and revenue derived from beauty and household goods, 40% from snack foods, and the remaining 20% from beverages and condiments. The company utilizes a global supply chain and direct sourcing to maintain its competitive pricing. Chen Cheng has emphasized that the core of the hard-discount model lies in "product power," focusing on a refined product selection to achieve an optimal price-to-performance ratio for consumers.