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 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
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
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
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
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 :)
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
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
https://twitter.com/businessbarista/status/1439687882319466500?s=20
Hope you liked the Visual Thread 🧵
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