Birkin bags, Moutai and a savvy social media push: how Costco scored with its Shanghai debut while other retailers failed
- Unable to cope with the mad rush of shoppers and safety concerns, bricks-and-mortar retailer Costco was forced to shut its Shanghai store early on its first day
- Costco’s social media push proved to be a huge success as it brought thousands of shoppers to the store’s Shanghai opening
US supermarket giant Costco was overwhelmed by the crowds that had descended on its newly opened store in Shanghai on Tuesday, forcing it to suspend operations because of safety concerns.
Thanks to a savvy social media push reminding consumers about the imminent store opening and large discounts, there was a frenzy for items ranging from designer handbags to liquor and shoes, in stark contrast to declining sales at rivals Carrefour and Walmart stores that are fast losing out to the onslaught of online shopping.
Shoppers were drawn to Costco’s warehouse style, membership-based store in the western suburban district of Minhang. And they were not disappointed. Kweichow Moutai liquor was priced at 1,498 yuan (US$209), about 400 yuan cheaper than elsewhere, while South Korean luxury brand MCM’s leather backpack was retailing at 4,399 yuan, about 1,100 yuan lower than on China’s e-commerce platform Tmall. Prada tote bags were selling for 13,999 yuan, according to photos shared by shoppers on social media.
Even Hermès’ popular Birkin bags were available at the wholesaler, although no price was available for the item that retails for several thousand US dollars each.
Jacky Chen, a Shanghai resident who visited the outlet, said local police ordered the suspension of business as it became increasingly difficult to control the crowds.