After five years of online sales, Costco has opened its first, long-overdue warehouse in the Chinese mainland. The newly opened Costco store in west Shanghai made an impressive debut on Tuesday, but it begs the question of whether the new kid on the block has enough gimmicks to keep Chinese customers coming back.

Costco's business model with thin profits and quick turnovers did draw customers. Chinese shoppers stormed into the brick-and-mortar store and emptied shelves. 

Chinese luxury liquor Kweichow Moutai was particularly popular. The 500-milliliter, 53-percent-proof Moutai Flying Fairy sells for 1,498 yuan ($209.19) per bottle - almost slashing its regular retail price in half.

Due to the massive crowds flooding the store, Costco had to limit customer traffic in the afternoon and apply traffic control on Wednesday. Company stock traded 4 percent higher on Tuesday.

One concern people may have about the $129 billion company is whether its ultra-low prices can continue. Grocery stores in China have seen ferocious competition. Price markdowns in order to run over rivals are ubiquitous. However, low costs do not always get them very far. Despite the rise and fall of street corner grocery stores, large retailers feel the pressure.

Walmart, parent company of one of Costco's major US rivals Sam's Club, has reportedly shut down 15 stores within China this year. Carrefour, a French retail chain which has been operating for 24 years in China, also lost its luster and is about to sell 80 percent of its business to Chinese company Suning.

Another concern is that Costco may have signaled the start of a price war. Price wars have left a pile of grocery company casualties in their wake, so why would Costco be an excep-tion?

Selling in bulk will be helpful to some extent. Costco, which relies heavily on the North American market, has been branding the concept of warehouse membership which is open to family and business purchases. 

It offers a variety of merchandise, even providing insurance and gas with a membership discount.

Whether or not Chinese people with smaller families and different shopping habits will stay loyal to the brand after the thrill has gone remains to be seen.

Costco may introduce drastic change to the Chinese retail business model, or it may be another Walmart or Carrefour. But one thing is certain: the Chinese retail industry does not want to be stuck in an obsolete price war.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn