What does Costco have that other retailers don’t?
Costco just opened the doors of its first store in China. On the first day, huge crowds lined up for hours to get into the store. Once inside, they became part of a frenzied horde of shoppers fighting for anything from detergent to Birkin bags. The chaos was such that the store had to close early. At a time when other large retailers struggle to maintain a presence in China, Costco’s measured strategy and focus on the long game may pay off.
Video Spotlight: Costco’s Opening Day in China
This post is based on The Washington Post article, Shoves, Brawls and Shouts: Welcome to Costco’s Opening Day in China, by A. Fifield and R. Siegel, August 29, 2019, and the YouTube video, Massive Lines at Costco’s China Opening Amid Trade War, by Bloomberg Markets and Finance, August 28, 2019. Image source: Yongyuan Dai/Getty Images
1. Compared to other large, international retailers, is Costco late entering the Chinese market? Why or why not?
Guidance: Large, international retailers such as Carrefour and Walmart entered the Chinese market in the mid-1990s. Despite partnering with local businesses, these retailers have had Continue reading