Costco(US:COST) Sou Hu Cai Jing·2025-09-15 18:27Group 1: Industry Overview - Global consumption has been experiencing persistent weakness, with the retail sector in a downward phase [1] - In China, the total retail sales reached 48.79 trillion yuan last year, showing a year-on-year growth of 3.5%, but the growth rate has declined by 3.7 percentage points compared to 2023 [1] - In the first three quarters of last year, retail sales of 50 major retail enterprises in China fell by 5%, with at least 38 malls closing, 76% of which had been operating for over 10 years [3] Group 2: Costco's Resilience - Costco has maintained a compound annual growth rate of 8.8% in revenue over 20 years, with only one instance of negative growth during the 2008 financial crisis [3] - The company ranks 20th in the Fortune Global 500, with a market value exceeding 450 billion USD and over 890 warehouse stores worldwide [3] Group 3: Business Model Insights - Costco relies on a membership model, generating significant revenue from membership fees rather than solely from product sales [4] - As of 2024, Costco has 76.2 million paying members, with membership fee income reaching 4.828 billion USD, accounting for 65% of the company's net profit [6] - The membership renewal rate is notably high at 92.7% in North America, allowing Costco to offer low-priced products and create a positive feedback loop [6] Group 4: Product Strategy - Costco employs precise product selection and collaborates with well-known brands to ensure high-quality, cost-effective products [7] - The company utilizes data analysis and AI to predict consumer purchasing preferences, enabling customized recommendations [7] - Limited edition and seasonal products are introduced to enhance customer experience and stimulate purchasing impulses [9] Group 5: Operational Efficiency - Unlike typical supermarkets that offer a wide variety of products, Costco limits its SKU count to around 4,000, significantly lower than the typical 30,000 [10] - This strategy enhances operational efficiency, reduces management costs, and improves warehouse and logistics efficiency [10] - Costco provides a customer-friendly return policy, allowing members to return items without conditions, which alleviates customer concerns [10]