I think that's the complete opposite of what they stand for. If I go into Lidl I have to buy their own-brand fake ariel washing powder. Where as if I go to Tesco, I can choose the expensive name brands, Tesco's own brand or anywhere in between.
You give too much credit to advertising and brand identity if you think "fake ariel" is something inferior to "real ariel", or that "real ariel" is something hard to achieve that means quality.
At least in Europe you have a chance to choose what you want: The classical premium brands, premium Lidl brand or cheap brands.