Core Insights - The opening of Costco's first store in South China has been highly successful, achieving a record of 140,000 membership sign-ups on its opening day, January 12, 2024 [3] - The store has attracted not only local consumers but also many families from Hong Kong, making it a popular weekend shopping destination [3][4] Consumer Behavior - Hong Kong consumers account for 15% of the customer base at the Shenzhen Costco, with an average spending exceeding 800 RMB per visit [6] - Popular items among Hong Kong shoppers include snacks, dried fruits, and essential daily goods, indicating a strong demand for these products [6] Product Strategy - Costco has successfully localized its product offerings, launching exclusive items that blend international and local flavors, such as kumquat lemonade ice cups and seasonal baked goods featuring popular ingredients like crayfish [7] - These products have generated significant buzz on social media, contributing to their popularity [7] Competitive Landscape - The rapid success of Costco in China reflects the growing competition in the membership-based supermarket sector, with other brands like Sam's Club and Hema also expanding their presence [8] - Major players such as Yonghui and Beijing Hualian have increased their focus on warehouse membership stores, intensifying competition and providing consumers with more choices [8] Expansion Plans - There are discussions about Costco's potential expansion into Guangzhou, with a possible new store location in the Zengcheng district, although specific details remain unconfirmed [11] - The company aims to continue its growth in South China, leveraging its global supply chain and localized product strategies to enhance market presence [11]