Costco Enters China Market Via Alibaba's E-commerce Door

Retailer Costco launched its business in China by opening a store on e-commerce company Alibaba's Tmall Global platform. Refusing to follow the lead of other foreign-owned retailers, which launched their brick-and-mortar retail stores in the country, Costco focused instead on online sales. During its first month of operations, the company reported $6.4 million in sales. Costco's partnership with Tmall Global offers several advantages, including the ability to operate without the need for local storage facilities and the need to secure business licenses.