A German-owned supermarket franchise Aldi has been taking ground from Australia's duelling retail giants, Woolworths and Coles since 2001.

It now hold around 15 percent of the supermarket space with 350 stores across the country and 4 billion Australian dollars (3 billion U.S. dollars) in annual sales.

With the help of Tmall Global, operated by Alibaba, Aldi is now expanding sales into China using Australian suppliers, it was announced on Friday.

"We know there is a strong demand among Chinese consumers for Australian manufactured products and our goal is to provide a competitively priced alternative for shoppers seeking quality groceries," an Aldi spokesperson said.

The bulk distributor, which has made a name for itself offering very low prices, is expected to be the biggest sellers in China for wine, snack and breakfast products.

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