Costco isn’t building out one of its massive membership-only warehouses as part of its first foray into China. Instead, it is partnering with Alibaba, the massive Chinese Internet giant that recently hosted its U.S. IPO, raising an eye-popping $25 billion.
The two companies announced today that Costco is selling some of its merchandise, including some of the Kirkland brand products, in China through Alibaba’s Tmall.com e-commerce platform.
The partnership allows the Seattle-area retail giant to gain access to Chinese consumers, who are commonly looking for foreign brands.
“Costco sees tremendous growth opportunities in China, especially in light of Chinese consumers‘ increasing appetite for imported products. We have chosen a great partner, Alibaba, for the official launch of Costco’s Flagship Store,” said Costco’s Executive Vice President, Jim Murphy.