Costco, the largest membership-based warehouse chain in the United States, is the world's second largest retailer after Walmart, with 809 stores and more than 100 million members worldwide. After experiencing the scene of the opening of the first physical store in Chinese mainland on August 27, 2019, it opened in the second store in Suzhou on December 8, 2021 and accompanied by a number of store planning. Compared with the retail market, the mainland industrial product procurement market has exceeded 10 trillion yuan in scale, and will maintain steady growth on the basis of the continuous development of industry and construction, the steady expansion of procurement demand, and the continuous improvement of industrial supply chain efficiency. In such a relatively blue ocean market, WKEA Has been deeply engaged in the supply chain service of industrial products for 25 years, how to create its own market, and what kind of relationship with market openers? Next, Xiaojia will find out from the current situation of the industry, product system and gross profit margin data.
Industry status: the market demand is large
In 2019, Costco opened its first store in Chinese mainland, and the number of registered members exceeded 200,000. The epidemic in 2020 and the bull year in 2021 Costco opened the market to plan the market layout of 5 stores in just over a year. From the financial report and industry data analysis, Many of Costco's operating indicators of market openers are better than all brands in this format. In an interview, Zhang Sihan, president of Costco Market Opener Asia, also expressed: At present, the performance and flow of people from the opening of the first store are relatively stable, and the most important thing is that the unit price of customers is growing, which also means that our members are getting more and more aware of Costco Market Opener's goods, and their purchasing power is getting stronger and stronger. Compared with other retail brands, the market value of the market opener itself is constantly improving.
As one of the most lively tracks in the field of industrial Internet, according to the data, in 2020, the size of China's industrial products market is 10.6 trillion yuan, in the industrial product market, MRO accounts for about 20%, the market size is about 2.1 trillion yuan, the PM market size accounts for 80%, it is expected that in 2025, China's industrial products market size will reach 13.2 trillion yuan, with an average annual compound growth rate of 4.7%, and the scale of the ten trillion tracks still needs to be developed by major participants. In the face of the changes in the market demand for industrial products, WKEA weijia through the integration of new technologies and new models, the construction of digital and supply chain collaboration, the establishment of self-operated e-commerce platforms, mini programs and APP and other channels to improve the efficiency of all aspects of the industrial chain, cost reduction to create conditions, to help create the same industry transformation and upgrading. And in the process of use, we will constantly improve ourselves to meet the needs of the changing market.
Product system: Selected suppliers provide high-quality products and create their own brands
First of all, the types of goods of the market openers cover a wide range, the selection is controlled in the middle and high-end, and there must be more than 3 years of stable cooperation. In the American drama "Modern Family", a scene described this phenomenon vividly at the beginning, as a lawyer, Mitch was initially very disgusted with the market breakers, and even did not want to go in, frequently rolling his eyes.
Until I found out that this supermarket actually sold baby formula and coffins at the same time, I couldn't help but exclaim "here is everything you need from birth to "leaving", and I didn't want to leave. In addition to some daily necessities, market maker goods also involve wine, cars and some luxury brands such as Prada.
In addition, the market maker's own brand KirklandSignature (Kirkland), high quality and low price, gave up the possibility of brand premium, to ensure that its brand research and development must be the same or better as domestic brands.
WKEA product development and market developers have similarities, in terms of supplier introduction and product audit on the shelves, there is a strict audit mechanism, and constantly expand the product range to meet the needs of the market, and strive to create a transparent, open and perfect supply chain system in the industrial products industry. In 2010, 2012 and 2016, it became the authorized agent of EASUN Billion Day, STNC Sono and MINDMAN. WKEA operates a wide range of products, including: pneumatic hydraulics, office supplies, labor protection supplies, stamping die parts, cutting tools, plastic mold parts, industrial materials, factory automation parts, control/electronic components, production and processing supplies, research and management supplies, etc., with 30,000+ customers to maintain cooperation, suppliers as many as 5,000+ productSKUs nearly 6 million, to provide customers with more than 100,000 orders, more experienced products, customer service, technology, The Management Team of Operations Experts assists clients in making the right purchasing decisions. Through spot, real price, high quality, genuine products, automation to help enterprises reduce operating costs.
In addition, while introducing high-quality brands in the market, Shanghai Vega launched Vega as its own brand, providing high-quality products, and giving greater value to customers under the premise of ensuring quality and performance. And try our best to meet the needs of different customers, so as to achieve the supply of long-tail products and non-standard products.
Gross margin does not exceed 14% and gross margin does not exceed 20%
The retail model of the market opener is a membership system, and this new model organically combines the value of operating customers with the commodity system and the operating system, and ultimately achieves the goal of maximizing the value of operating customers. Compared with several other large member supermarkets, the number of SKUs of market openers is relatively small, and high-quality products are selected for consumers, reducing the difficulty of customer selection and greatly shortening the per capita shopping time. In terms of gross margin, Costco Market Opener internally stipulates that the gross margin of all goods does not exceed 14%, and once this figure is exceeded, it requires CEO approval and then board approval. However, the board has never approved in the past. In addition, the product return guarantee also gives customers enough trust.
WKEA has a deep understanding of the needs of the industrial products industry, responds to the national sunshine procurement call, builds a team based on advanced software technology and cloud computing capabilities to create a one-stop industrial product procurement service system, from the product, price, logistics, warehousing, service and other aspects to help improve the procurement efficiency of enterprises, reduce costs. In the face of the ongoing epidemic situation, WKEA has continuously improved the optimization of the online website, strived to give customers a better procurement experience, stratified customer needs, and expanded categories, promoted one-stop services, and continuously improved the satisfaction of customer product procurement needs. In terms of product pricing, we adopt a pricing strategy with a maximum gross profit margin of no more than 20%, and implement a low-cost and high-quality business strategy. Strive to practice the concept of "customer demand is the biggest market".
Compared with the development path of the two, as the global market of market openers continues to develop, the scale of operations expands, the value of their business models is more obvious, and market openers have the ability to continue to gain market share from high-cost retailers for many years to come. WKEA will also adhere to the company's service concept of "serving customers, creating value, sharing profits, and cooperating with win-win" in the competition of the industrial products market, enhance its own value to the market, actively explore and innovate, and use advanced software technology and management methods to achieve a win-win situation for customers, partners and employees.
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