Excitement filled the air as thousands of shoppers lined the sidewalks and streets outside a large gray building in Shanghai on August 28, anxiously waiting for Costco’s first warehouse in China to officially open. In front of the entrance, local musicians in elaborate silk robes played traditional celebratory drums (tanggu) to mark the momentous occasion. Looking on from just inside were Costco officials and members of the Club Demonstration Services (CDS) leadership team, ready to mark the next chapter in the two companies’ long-standing partnership that spans more than three decades — and now, four continents and 10 countries and regions.

Behind the scenes, CDS Sales Advisors rolled their carts onto the sales floor, ready to bring the Costco treasure hunt experience to life for Members, one sample at a time. According to CDS Business Manager Robert Liu, the CDS team had prepared for large crowds on opening day, teaching their Sales Advisors how to handle long lines and customers eager to partake in sampling events. As soon as the doors opened, Members flooded the aisles with their shopping carts, filled with Kirkland Signature products, meats and fresh produce. The anticipated grand opening caused the warehouse to shut down early due to the overwhelming crowds. To say the grand opening was as success is an understatement.

CDS and Costco have a long-standing history of expanding to new markets together, which is what Liu credits for CDS being invited to join Costco in this new endeavor. “The Chinese market is hard, and there are hundreds of competitors out there,” he explains. In choosing CDS as its preferred in-house demo provider, Costco is counting on the successes the companies have had together in other countries.

Likewise, CDS is counting on the standards that have made its other programs so successful in to deliver success in China as well. “Demos are common at other retailers in China, but CDS’ best-in-class standards for quality set the bar high for others in the industry. No one does demos like us,” says Liu. He goes on to explain that CDS’ tried-and-true methods of providing ample samples, following strict food safety practices and encouraging shoppers to purchase the product without pushing too hard, all stand out as points of differentiation in the market.

Given their track record, Liu remains confident CDS’ and Costco’s joint foray into China will ultimately be a success. Over the past 20 months, as he and his team have navigated everything from complex tax codes to logo redesigns. Liu says that they’ve even developed a special way to recognize their wins. “We have a little bell in our office and whenever there is a new contract signed, a new event booked, or any problems solved. We ring the bell to celebrate,” he explains.

If the massive crowds at the grand opening are any indication, it looks like there will be plenty more opportunities for the CDS China team to ring that bell — and celebrate!

Minutes before the grand opening of the first Shanghai warehouse.

 

   

Team China awaiting the arrival of thousands of members.

 

Upon opening, eager members began flooding the aisles.

 

As time passed, the crowds grew larger.