Costco is a warehouse that offers customers low priced wholesale goods. And, Millennial is a term that implies to people who have entered into adulthood in the 21st century. It also implies to the generation born in between 1982 and 2004; also known as Net Generation Y or Generation Y. In the order of demographic cohorts, they follow the Generation X. This generation is more connected with technology and social media.
Costco is one of the most popular retailers in the US and began its operations in Washington back in 1983. The warehouses are designed as per the client’s view: it means they are user-friendly and allow them to shop in bulk. From there, they can purchase products for resale at reduced costs. They provide you everything that you can imagine including things like appliances, groceries, television and media, automotive supplies, tires, jewelry, watches, toys, books, furniture, apparel, office equipment, and others.
How Chieh Huang Built Boxed, a Mobile Juggernaut With $100M+ In Revenue
In his childhood at New Jersey, Chieh Huang used to go with his parents to the Price Club every other weekend to buy paper towels and other consumer products in bulk. When Huang founded Boxed with a few friends in 2013, he wanted to offer the same deals in a huge array at the same place. Then he started Costco as per the demand of generation Y or Millennials.
Huang started an online business with the delivery service. With the time, this New York-based company reached the astronomical growth and nationwide expansion in the city. They are continuing their business with $133 million funding from GGV Capital, DST Global, and others. Two years ago they had reached $8 million from their business and now this year Huang is expecting to reach more than $100 million.
Why Costco deal matters to Millennials?
The main motive of Costco is to engage the Gen X and Y. The reason why buyers feel attracted to these warehouses is their huge online presence. These warehouses are amplifying this generation’s social media reach, increasing their organic offerings, and even providing same day delivery services in several locations. Just because of their reputation and convenience for paying their employees, investors and Millennials are inclined to adopt companies like Costco.
Costco provides several benefits to its employees. This is something Millennials always look for. Costco is serving as a one-stop-shop for high-quality materials including wipes, baby diapers, clothes, and other necessities at affordable prices. They are also offering the luxury goods like iPhones, digital cameras, cosmetics, and much more.
One another option that is making Costco Millennials’ first priority is their Visa deal.
Last year, it generated revenue of $100 billion in sales. It’s a bold move for Costco as well since they have also seen a pullback impact on their financials.