How Costco Cracked Japan’s Impossible Market
Video Overview & Insights
Japan has long been a “graveyard” for foreign big box retailers — Walmart, Carrefour, and Tesco all failed to win over shoppers. Costco, on the other hand, has grown to nearly 40 locations since 1999, making Japan one of its largest markets outside North America.
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On paper, a bulk-buying warehouse shouldn’t have worked in one of the world’s most crowded countries. But Costco bent its US playbook to fit Japan’s unique retail landscape in surprising ways. This is the story of how Costco cracked one of the toughest markets in the world — and why its rivals couldn’t.
if they open in iraq will happen the same
Special thanks to Tran Phan for weighing in on our story. You can find more of his reporting here: https://www.readtrung.com/.
And if you really haven’t had enough Costco content by this point, then check out our feature story by Zachary Crockett on how Costco gained a cult following — by breaking every rule of retail: https://thehustle.co/costco-membership-economics
Tesco is also failing in its home country :)
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Membership is not the only profit center for Costco. Its the Kirkland brand is a powerful profit center. you own the vertical chain with no factory and only retail and margin greater than 15%. Most kirkland brand are stuff that are no name bulk food then slap a brand name on it. This is how large supermarket works.
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Its because costco does not scan and go. Everyone is waiting for the cashier.
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I’m only shopping at Walmart and Costco now, all the local grocery stores are so expensive and when I go to Costco things are expensive like in the grocery stores but I get much more for my dollar.
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10:05 - one factor to Costco being cool with this is that they’re not in competition with local businesses. Local businesses don’t have the logistical capability to ship a bunch of bulk goods to any of their locations at low cost, but Costco can. So even in America, their role is very often to serve as suppliers to small businesses.
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you were handling that smoothie in the car and then several times at home. did you ever drink it?
@jasongodwin1319Sell hotdogs for a 1.50$ there too and watch them sell out 🤣
@The_Original_GarfThey succeeded because Japan has no Costco-equivalent. They do have equivalents for stores like Tesco and Carrefour.
It's basic competitive positioning. Not that complicated.
6:12 Common, but debunked myth. Costco sells more per customer than does Wal-Mart
@nonyabeeswacks1919Can you also cover the QB House ?
@SuperSamoyedDOTOThe best technique is to basically don't try to outsmart them, because They'll know 😂
@LanxPenzenpepperI live in Okinawa and i waited a year before going.
@Mbusybuui got a real yn named chad for you back that thing up on.
@98book30Costco is the only big box retailer that is NOT marketing to the poor.
@ericyu423She starts saying things that matter after 8:20.👍
@AN-717My son was living in Hokkaido for half of 2024 and most of 2025. In one of the cities he lived there was a store that resold a lot of Costco products in an area where there was not a Costco.
@MrChadbagCostco in Japan is awesome. Far better food court. Still have real Costco muffins. Sushi. And better samples. Costco has been in Japan a long while and continues to grow.
@MrChadbagyou 100% misprounced that at 2:16 on purpose for the video
@sampanzee5684Excellent, very informative. Thanks. 👏
@Chi_Chi34I sadly live in a Costco desert". There are no Costco locations in over 70 miles and I have never been able to go inside a Costco. One day I'll go to one and see how nice it can be.
@aegisofhonorWhen I lived in rural Japan, we had to drive an hour and a half (one way) to the nearest Costco. Would do bi-monthly trips and stock up on so much stuff. People would travel over 2 hours to go to Costco in Japan
@TheAlphaGuidoInteresting that there is no Costco in Germany and Walmart failed as well 😂.
@stroll-and-rollVideo starts at 8:15
@AmanSingh-nw7lwIkea cracked it.
@Mark-OutWestThis is also a big win because of the relationship between Americans and Japanese alot of restaurant owners to small businesses in Japan or in America use Costco because it has great deals on season stuff and products
@TFDDollI despise Costco in Canada. I only go when my elderly mother needs to go. Prices aren't that great and don't justify the membership cost. Further, the staff at the local Costco are obnoxious and rude.
@theloniousm4337Okinawa is also where our Air Force base is. So there would be a lot of service people and their dependents in that line.
@chelleyrobertsLaguna Niguel Walmart and Costco sighting in a youtube video, you don't see that everyday
@grantcaryIt's the hotdogs
@iamsteve121oh this makes me want a costco hotdog/pizza slice or clam chowder
@yujishinohara797babyWeird shirt
@roninnderThey succeeded in korea too, where walmart tesco and carrfour failed
@hushpuppie1アメリカの消費意欲に比べて、日本人のそれはかなり低いと思います。
なんでも大量にすぐ買うアメリカ人と比べると、日本人はそれほど消費行動をしませんね。王者ウォルマートであっても、日本というマーケットは難しかったでしょう。
コストコは果たして・・・
When I worked at Costco's corporate warehouse in Issaquah wa. (2005-2006) our GM at the time, got promoted to the regional manager of all Japan's Costcos.
@dustinmatthews387Do the average Japanese homes have enough storage to buy things in bulk? Smaller refrigerators, smaller freezers, smaller apartments, less closets/storage.
I only wonder because of videos I've seen on YouTube about affordable apartments and their size.
Costco's success in Japan does make sense. Costco has auditing experience of retail trading in South Korea - the two economies I'm not that different from each other.
@prince_scottWhen I visited Japan, I went to Costco in Osaka. Got lots of snacks. And I filled up with Costco gas. 😂.
@bradchin7746Costco is cost efficient
@simonlau7652did chatgpt write the script for this video?
@Raja-yc5ifand in china they did well by selling what chinese people love the most (luxury brands)
@Shammer1They can't seem to enter the market in Vietnam. Sorry but Vietnam has more competition than Japan.
@Fuwa_sanTaiwan is my home country.
@tinachen9728I think they use some local ingredients and some over seas food from most all over the world to make it successful I am guessing because we have Costco in New Zealand and it’s cheaper to buy in bulk compared to buying one buy on of paper plates in New Zealand is really expensive if it’s not bought in bulk.
@tinachen9728they cracked WHAT?!
@strength5251Costco is called "KOSUTOKO" in Japan.
All Japanese people have always wondered why you native speakers leave out the T sound ???
7-11’s in Thailand are Outstanding!!
@Scott-AndyI am American and love my local Costco in Korea. We also have the cart elevators, but just to go to the parking garage.
@bes03cCool video, thank for doin it. I think you should have taken the short time to easily learn to pronounce Daitenho. If you still can't do it justice, at least learn how to pronounce the French Carrefour. It would build more credibility. Also, I think the commenters below brought up stronger points than this video.
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