How Costco Cracked Japan's Impossible Market
Why Retail Strategy Analysts Rewatch This 11-Minute Costco Japan Market Entry Five-hour warehouse opening lines: "Scrolling through Reddit came across user's thread, apparently line get inside Costco's brand new warehouse Okinawa Japan last year, Reddit user said waited 5 hours just get inside after warehouse opened 3 hours earlier than originally planned, store opening never should have happened, Japan essentially graveyard foreign big box retailers, British supermarket powerhouse Tesco only lasted 9 years France's hypermarket pioneer Carfor tapped out after five, even Walmart biggest retailer planet couldn't crack Japan's impossible market." Dahi tenho law regulatory challenges: "Time Japan had law called dahitienho large-scale retail store law, required large-scale retailers like Costco go through consultations neighboring mom pop shops many cases accept restrictions opening store hours mandatory closure dates limit competition, Costco decision enter Japanese market 1990s ideal few reasons, had ramped prepared go into time second biggest economy world trialing Taiwan South Korea, from Japan's side ready try new different business models economy not best place." Cutting middlemen supply chain decade: "Costco known cutting out middleman going directly suppliers order pass wholesale prices customers, in Japan achieving structure proved incredibly challenging, there are layers layers layers middlemen Japan heavily involved determining flow goods, wasn't overnight able substitute out all middlemen had work lot different organizations, once established own supply chain took decade do that been able basically double pace openings 15 years since." Walmart everyday low prices failure: "Walmart came Japan assuming could replace layers layers middlemen own logistics negotiate rock bottom prices suppliers work everyday low prices magic into SEU stores, Japan's complex web distributors thwarted Walmart's efforts ring lower prices suppliers, Japanese consumer has extremely high expectations interpret low prices mean low quality, 2008 Walmart bought remaining stake SEU losing money held out 12 more years selling majority stake 2020 sold chain $2.5 billion 2025." Share shopping adaptation success: "If live 400 square foot apartment Tokyo not going want giant tub mayo might want easier get half giant tub buddy that's kind idea lot share shopping, why have more members per warehouse specifically break out products more single serve individual serve things two people friends shopping there can split effectively what buying, smaller retailers actually opened many Costos within own stores selling Kirkland brand items 10 20% markup Costco was cool with it." 5 Key Timestamps: [00:00] The Five-Hour Warehouse Opening Line Story – Reddit user waited 5 hours just get inside Costco Okinawa warehouse opened 3 hours early, Japan graveyard foreign retailers Tesco lasted 9 years Carfor five even Walmart couldn't crack impossible market [01:51] The Dahi Tenho Regulatory Law Challenge – Japan had large-scale retail store law required Costco consultations neighboring mom pop shops accept restrictions opening hours mandatory closure dates, Costco decision enter 1990s ideal trialed Taiwan South Korea Japan ready try different models [03:48] The Cutting Middlemen Supply Chain Decade – Layers layers middlemen Japan heavily involved determining flow goods, wasn't overnight substitute out middlemen had work different organizations, once established own supply chain took decade double pace openings 15 years since [06:31] The Walmart Everyday Low Prices Failure – Walmart assumed replace middlemen own logistics negotiate rock bottom prices, Japan's distributors thwarted efforts Japanese consumer high expectations interpret low prices mean low quality, held 12 years sold chain $2.5 billion 2025 [09:15] The Share Shopping Adaptation Success – Live 400 square foot apartment Tokyo not want giant tub mayo easier get half tub buddy lot share shopping, more members per warehouse break products single serve two friends split, smaller retailers opened Costos within stores selling Kirkland 10 20% markup
Not Rated Yet