Costco enters the Chinese market BA 223 WEEK 2 BLOG
Costco's consumer population in the US domestic market has always been oriented to low-income American families. When it entered China, it also followed the traditional consumer population positioning. Although the first store in China chose to be in Shanghai's first-tier cities, it still chose to use "high quality and low price" to control the gross profit of the goods below 14%. Therefore, the purchase cost is lower and the sales price is also lower than that of Other supermarkets and e-commerce platforms are low. For example, the price of its food department stores is directly lower than the market price by 30% to 60%. Consumers can buy the products they need at the best price in Costco. I think this has attracted Chinese consumers to a great extent.
Most of Costco's products are super-large-scale family-owned clothes. Consumers buy the largest-capacity products at the lowest price, which will make consumers have the illusion that they have found it cheap. But in fact, all the goods in costco are purchased and come directly to the shelf for sale, which saves the time of product splitting and product sorting, and also greatly reduces the cost of goods. maximum profit.
Costco is the largest warehousing member chain in the United States, and more than 90% of American households are members. As the world's first membership-based warehouse wholesale store, the first step in entering Costco is to handle membership. A member card of his family can enjoy discounts in Costco all over the world. As long as you have a member card, most products can be returned for no reason, which brings consumers a good shopping experience.
Overall, Costco ’s success is inseparable from his innovative business model, and its success has also brought many lessons to China ’s new retail. At present, if local supermarkets in China want to achieve rapid development, I suggest that brands should adhere to the combination of local and internationalization, and continue to adjust according to the positioning of enterprises and the actual situation in order to achieve development in the competition.
http://costco-com.com/
Most of Costco's products are super-large-scale family-owned clothes. Consumers buy the largest-capacity products at the lowest price, which will make consumers have the illusion that they have found it cheap. But in fact, all the goods in costco are purchased and come directly to the shelf for sale, which saves the time of product splitting and product sorting, and also greatly reduces the cost of goods. maximum profit.
Costco is the largest warehousing member chain in the United States, and more than 90% of American households are members. As the world's first membership-based warehouse wholesale store, the first step in entering Costco is to handle membership. A member card of his family can enjoy discounts in Costco all over the world. As long as you have a member card, most products can be returned for no reason, which brings consumers a good shopping experience.
Overall, Costco ’s success is inseparable from his innovative business model, and its success has also brought many lessons to China ’s new retail. At present, if local supermarkets in China want to achieve rapid development, I suggest that brands should adhere to the combination of local and internationalization, and continue to adjust according to the positioning of enterprises and the actual situation in order to achieve development in the competition.
http://costco-com.com/
Comments
Post a Comment