Core Viewpoint - Walmart is intensifying its focus on private label brands, particularly "Wojixian," as a strategic response to competition from e-commerce and emerging retailers, while also addressing the declining image of its Sam's Club brand [1][2][4]. Group 1: Walmart's Strategy - Walmart's private label "Wojixian" has been upgraded to cover essential categories like fresh produce, food, and beverages, emphasizing low prices and health attributes [2][4]. - The company is facing challenges as traditional retail formats struggle against e-commerce platforms, prompting a shift towards private labels to enhance competitiveness [1][4]. - The strategy of launching private labels is seen as a "last resort" to revitalize the hypermarket format amid increasing competition [1][4]. Group 2: Market Competition - Other traditional retailers, such as RT-Mart, are also focusing on private labels, with a similar emphasis on low prices and health trends [2][4]. - New players like Hema and Dingdong Maicai have established private labels as core competitive advantages, highlighting the shift in market dynamics [6][9]. - The competition for quality suppliers is intensifying as both established and emerging retailers seek to enhance their private label offerings [7][8]. Group 3: Financial Performance - RT-Mart's parent company, Gao Xin Retail, reported a revenue decline of 12.1% year-on-year, indicating the financial pressures faced by traditional retailers [5]. - Walmart's performance in China is primarily driven by Sam's Club, while its hypermarket segment has been experiencing store closures [5]. Group 4: Private Label Development - The private label penetration varies significantly among retailers, with Aldi achieving a 90% share in China, while Hema's community stores have nearly 60% [7]. - Successful private label strategies require strong brand value and supply chain management to maintain competitive pricing and quality [7][8]. - Walmart's approach involves stringent supplier selection, with only a small percentage of potential suppliers making it through the rigorous evaluation process [8].