As a business entity regarded as a miracle by Lei Jun and Charlie Munger, Costco has gradually entered the Chinese people’s field of vision in recent years, and there have also been reports about Costco’s entry into the Chinese mainland market -Job Function Email Database unfortunately, the progress is slow as a snail. In the fields of new retail and new consumption, some institutions have also begun to study the Costco model, and even began to invest in some “Costco-like” entrepreneurs.
I Think, From the Perspective of the Domestic Market
I think, from the perspective of the domestic market, Job Function Email Database if there is no extremely large amount of funds and years of deep cultivation, this kind of “Chinese Costco” will not be able to run out at all – very simple point, most institutions do not even understand the real business logic of Costco, just Just living in the imagination of being able to charge membership fees. Appearance Costco As a traditional retailer that mainly serves Job Function Email Database the relatively wealthy class in the United States (Costco’s typical user earns $100,000 a year), Costco is a low-price strategy from the outside: its official website shows that Costco’s markup rate does not exceed 16%. At the same time, Costco’s stores are basically located in the suburbs. All products are in large packages, and consumers have to drive there.
The Core Is to Meet Their “Stocking” Needs
The core is to meet their “stocking” needs. The need for walking, instant gratification goes against the grain. In addition, for a retail store with an average area of 13,499 square meters. Costco’s SKU is basically maintained at 3,700, not exceeding 4,000. The core is that each category has only 1-3 “champion products” and “top brand products”. To achieve massive purchases , Mass shipments. Lastly, Costco is all about serving members, who have to pay. Job Function Email Database including the $60 annual Gold Star card and the $120 Elite card (both the Gold Star and Elite cards come with a free “family card”). According to the 2018 fiscal year financial report that just ended in September 2018. Costco has 94.3 million members worldwide, of which paid Venus cards and elite cards account for 55%.