---
title: "Costco to Officially Enter Mainland China in 2019; Chinese Trademark Is Not 'Haoshiduo'!"
description: "At a supplier conference in Shanghai on May 9, Costco announced plans to open its first mainland China store in Minhang District, Shanghai, in spring 2019, with a second store planned for Pudong by 2021. The company also revealed that its registered Chinese trademark in mainland China is 'Kai Shi Ke', not 'Haoshiduo'."
author: "New Distribution"
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published: "2018-05-10"
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# Costco to Officially Enter Mainland China in 2019; Chinese Trademark Is Not 'Haoshiduo'!

> At a supplier conference in Shanghai on May 9, Costco announced plans to open its first mainland China store in Minhang District, Shanghai, in spring 2019, with a second store planned for Pudong by 2021. The company also revealed that its registered Chinese trademark in mainland China is 'Kai Shi Ke', not 'Haoshiduo'.

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On the morning of May 9, Costco held a supplier and customer conference in Shanghai, attended by heads of well-known food, beverage, toy, and technology companies.
**At the meeting, Costco announced its plan to enter mainland China: the first physical store will open in Minhang District, Shanghai, in spring 2019, and is currently under construction. A second store is planned for Pudong, Shanghai, by 2021. It also announced that its procurement team will visit Shanghai in June this year.**
This is the latest progress after reports last April that Costco was in talks with relevant authorities to establish its first physical store in Shanghai.
Costco is the second-largest retailer in the U.S. and the world's largest membership warehouse club chain. Known for its ultra-low gross margin model, it operates on a unique "curated selection + low prices + membership" approach. It currently has over 92 million members worldwide and ranked 13th on Fortune's "2018 World's Most Admired Companies" list.
**2014: Testing the Chinese Online Market**
Since 2014, Costco has successively entered Tmall, JD Worldwide, and cross-border e-commerce platform Ymatou to test the Chinese market.
In October 2014, Costco officially opened its Tmall Global store, stating that the Tmall flagship store was its only authorized online store overseas.
In August 2015, Costco established Shanghai Commercial Co., Ltd. in China.
In early September 2017, Costco expanded its online business in China through Tmall, launching an official flagship store in addition to its existing Costco Tmall Overseas Flagship Store. The two stores operate under cross-border e-commerce and general trade models, respectively. Both are owned by Costco's U.S. headquarters, with operations managed by Costco Asia Pacific.
**Costco's Registered Trademark in Mainland China Is 'Kai Shi Ke'**
It is reported that Costco's registered Chinese trademark in mainland China is "开市客" (Kai Shi Ke), not "好市多" (Haoshiduo).
In response, Costco explained that "Haoshiduo" has already been registered by a third party in mainland China, so it cannot be used there. The resulting brand recognition loss will be compensated by increased investment in brand image building.
**Reasons for Costco's Late Entry into Mainland China**
Costco entered the Asian market as early as the 1990s and currently operates 12 stores in Taiwan, 25 in Japan, and 12 in South Korea. Regarding why it has only begun to expand into the mainland market in recent years, Costco cited three main reasons.
First, with global sales rising, profits and membership revenue have increased year by year. In fiscal 2017, the group achieved an 8.7% growth rate. The company is actively seeking international expansion, and its stores in France and Iceland, opened in 2017, have been highly successful.
Second, with consumption upgrading, demand for high-quality products in China is increasing.
Third, nearly 20 years of operations in the Asian market have made the regional team more experienced and capable.
**Costco to Continue Expanding in Mainland First-Tier Markets**
On May 8, Costco formally signed an investment agreement with Shanghai Pudong Kangqiao (Group) Co., Ltd., indicating that it will establish a China regional investment headquarters in Pudong Kangqiao and, together with partner Xinghe Holding Group, build a membership club retail flagship store. Regarding future development, Costco stated it will continue to identify potential markets for expansion in first-tier cities.
**Source: Imported Food Selection**


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