The Hustle Daily Show The unlikely success story of Costco in Japan
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Oct 23, 2025 Discover how Costco became a retail success in Japan, overcoming barriers where Walmart faltered. Learn about its smart partnership with local developers and how Japan's shopping culture adapted to bulk buying. Delve into trends like the rise in subprime auto loan delinquencies and Beyond Meat's stock volatility. Plus, hear about GM's futuristic self-driving features and Aerie's commitment to real people in advertising. This episode is packed with insights into innovative business strategies and market responses!
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Value Beats Cheapness In Japan
- Costco succeeded in Japan by positioning value and quality over just low prices, which resonated with local consumers.
- That approach contrasted with Walmart's low-price image, which Japanese shoppers equated with low quality.
Retail Barriers Made Direct Sourcing Valuable
- Japan's retail barriers included a law requiring approval from surrounding mom-and-pop shops and a complex middleman network.
- Those hurdles made direct supplier relationships — Costco's strength — both risky and differentiating.
Asian Wins Gave Costco Confidence
- Costco had prior success in Taiwan and South Korea, showing its bulk model can work in dense Asian markets.
- Those wins likely gave Costco confidence to tackle Japan despite its added regulatory complexity.