Thread by @SachinRamje

Kirkland clocked $52 billion revenue in 2020 (25% of Costco's total revenue)

Kirkland did more revenue last year than American Express, Pfizer, Coca-Cola, and Nike.

Here is the visual breakdown of strategy behind its success:

h/t @businessbarista

Kirkland used the oldest trick in the playbook in business.

which is to undercut the price of competitors and sell at a cost price or discount.

It's like the old Jeff Bezos quote, which is, "Your margin is my opportunity."

h/t @businessbarista

Creating a True Differentiation

Lower price is one of the true differentiators of products.

In this biz model, one item is sold at a low price (or given away for free) in order to increase sales of a complementary good.

Best analogy is Razor-Blade Model.

h/t @businessbarista

Time - the life's best hack for success

Kirkland has been around for 26 years and is one of the key focus areas of Costco.

One day at a time is the secret to building momentum.

h/t @businessbarista

Distribution - massive contribution in Kirkland's success

Costco has 109.8 million card holders across 60.6 million households.

When you have distribution and your customers' data, you can create new products at a lower risk.

h/t @businessbarista

And that's it.

Hope you liked the success story of the private label behemoth- Kirkland.

I go through one episode of The Founder's Journal of @MorningBrew everyday.

I love how Alex shares the frameworks, stories on his podcast. @businessbarista

Here is how I visualize it :)

TL;DR

Three key reasons behind Kirkland's success:
- True Differentiation
- Time
- Distribution

Read more about the Costco's Story here.

Checkout the complete breakdown by Alex Lieberman - @businessbarista

Hope you liked the Visual Thread 🧵

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