“Almost all my friends have Costco memberships,” said Zhou, who works in information technology. Durian at a Costco Wholesale location in Woodland Hills, Calif., on April 24. Zhou became a Costco member around 2013 and now shops weekly for food, household products and gas at her local warehouse in greater Cleveland. So if a business like a Costco caters to the Asian community, they share that out and that multiplies out.”Ĭindy Zhou, 50, first heard about Costco from a friend who is also an immigrant from China. “Word of mouth and the influence of the community spreads, and that’s what helps elevate a business. “Every once in a very blue moon would you hear about a major retailer focused in on the Asian community,” Cohen said. The warehouse retailer famously does not spend any money on advertising, but word of mouth can cultivate brand affinity among different communities, said Marshal Cohen, chief industry analyst for market research firm NPD Group. “Regardless of the products we sell, Costco’s buying philosophy is the same: Research the marketplace, determine the variety of products our members are interested in, and negotiate an exceptional value on quality products and services,” Costco management told CNBC in an email. consumer.Ĭostco declined to comment directly on inventory and consumer strategy as it relates to Asian shoppers. As a result, Asian consumers are more than twice as likely to shop at warehouse clubs than the average U.S. Asian Americans are more likely to buy in bulk and seek bargains. Households of Asian descent tend to be larger than those of the overall U.S. On average, Asian Americans exhibit some shopping habits that differ from those of other consumers, NielsenIQ found. The untapped sales potential of Asian American consumers tallies to $13 billion, according to NielsenIQ. though the demographic also has the greatest intragroup economic disparity in the country. Asian Americans have the highest median household income in the U.S. jumped 81% from 2000 to 2019, compared with the overall population’s 16% growth, according to the Pew Research Center. ![]() ![]() The rapid growth and purchasing power of Asian Americans make the group a formidable consumer base for retailers. If their needs are being served, it inherently becomes very profitable for anyone that’s serving them,” Graham said. ![]() they’re going to be creating major market shifts. “For Asian Americans, their rate of population acceleration certainly lends to this idea that. trends,” said Kymberly Graham, head of diversity initiatives at consumer intelligence firm NielsenIQ. “There’s opportunity to take what were once held as niche or minority markets and put them central to U.S. population, but make up 11.9% of Costco shoppers, according to market research firm Numerator.Ĭostco’s dominance among Asian American consumers bodes well for the warehouse retailer’s longer-term growth trajectory - and carries implications for other retailers as the industry evolves alongside a diversifying United States. Asian Americans are the fastest-growing demographic in the U.S. They’re also a disproportionate number of Costco’s customers.
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