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Costco Uses Exclusive and Customized Products to Bring Seasonal Glitz to China

In striving to establish its brand in a new market and to differentiate itself from the competition, Costco focused on bringing exclusive and customized holiday season products to consumers in China.

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Fast Moving Consumer Goods

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After-sales services, Distribution and logistics, Marketing and sales, Research and analysis, Sourcing

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China

Costco Wholesale Corporation is an American multinational corporation that operates a chain of membership-only big-box retail stores. As of 2020, Costco was the fifth largest retailer in the world, and the world's largest retailer of choice and prime beef, organic foods, rotisserie chicken, and wine. In China, the retail giant opened its first store in Shanghai in 2019.

Costco Uses Exclusive and Customized Products to Bring Seasonal Glitz to China

Challenge

As Costco was considered a newcomer to the market, the client approached DKSH to help plan and implement marketing and sales campaigns, focusing on the brand’s seasonal assortment for 2021. These items were to be exclusive and only available in their stores.

Approach

At DKSH, we aim to drive customer intimacy by being committed to understanding and meeting our business partners' needs, and delivering customized solutions for growth. We teamed up with Shanghai Kesaiguo Food Co Ltd and facilitated the sale of two key branded products in Costco for the selected holiday season. The first was from leading German candy brand, Cavendish & Harvey, a collectible, retro-Victorian glass jar filled with their scrumptious mixed fruit candies.

The second brand was from the premium Japanese snack brand, Amanoya, a crunchy high-quality rice crisp snack. This was the perfect snack companion for consumers celebrating the holiday festivities.

Result

Costco’s business recorded a significant uptrend immediately after the portfolio diversification. It quickly became the third-highest ranked customer in terms of sales in China’s retail mix.

We are committed to ensuring the highest service levels to every customer in our portfolio and this includes providing new products, tailor-fit solutions, and supplemental revenue streams, to inevitably enhance the consumer experience in the trade. We are happy to partner with Costco and will ensure that this collaboration will be sustained as they expand their network across Mainland China.

Hiufan Tsang, General Manager, Sales and Marketing, DKSH FMCG China

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