Core Viewpoint - The article discusses the changing product selection at Sam's Club in China, highlighting the challenges of meeting the preferences of middle-class consumers while maintaining sales growth and member loyalty [3][12][26]. Group 1: Product Selection and Consumer Preferences - Sam's Club has been changing its product offerings frequently, leading to consumer frustration and a sense of urgency in purchasing [3][4]. - The introduction of familiar brands like Haoliyou and Xu Fu Ji has been met with criticism, as consumers feel these products do not align with the premium image expected from a membership fee of 260 to 680 yuan [10][11][12]. - The article emphasizes that if Sam's Club's product selection does not provide a sense of superiority to middle-class consumers, they may reconsider their membership [12][14]. Group 2: Sales Performance and Challenges - Sam's Club's sales in China are projected to exceed 100.5 billion yuan in 2024, which poses a challenge as many retailers experience stagnation or decline after reaching the 100 billion yuan mark [17][18]. - The company has restructured its regional management to improve performance in densely populated areas like East China, where competition is fierce [19]. - The shift from international brands to domestic alternatives is seen as a strategy to enhance supply chain efficiency and reduce costs [19][20]. Group 3: Membership and Revenue - Sam's Club has over 5 million effective members, generating more than 1.3 billion yuan in annual membership fees, with a 92% renewal rate for premium members [26][27]. - Membership fees accounted for 15% of total revenue in 2024, indicating a significant reliance on this income stream [26]. - The article notes that the perceived value of membership has shifted from exclusive benefits to a more straightforward consumption model, which may affect long-term loyalty [27][28].

Core Insights - The article discusses the changing product selection at Sam's Club and its implications for consumer behavior and brand perception [1][8][18] Group 1: Product Selection and Consumer Behavior - The author notes that certain products, once praised by consumers, are often removed from shelves, leading to a more aggressive purchasing behavior among shoppers [2][6] - The introduction of new products, such as a low-sugar snack, has faced backlash due to ingredient concerns and perceived quality issues, highlighting the challenge of meeting middle-class consumer expectations [10][11][13] - The shift towards more familiar domestic brands raises questions about whether these selections align with the expectations of middle-class consumers who pay a premium membership fee [15][18][19] Group 2: Sales Performance and Market Position - Sam's Club in China achieved sales exceeding 100.5 billion yuan in 2024, marking a significant milestone in the retail sector [25] - The company is undergoing organizational changes to improve performance in densely populated areas like East China, where store management has become challenging [28] - Membership loyalty is a strong asset for Sam's Club, with over 5 million effective members and a high renewal rate for premium memberships, contributing significantly to revenue [39][40] Group 3: Strategic Adjustments - The company is adjusting its product offerings by replacing international brands with domestic alternatives to enhance supply chain efficiency and cost-effectiveness [29][30] - The management is aware of the need to cater to the evolving preferences of middle-class consumers, which can be difficult to define and meet [20][21][24] - The article suggests that the recent changes in product selection may be influenced by internal management shifts, although no concrete evidence supports this theory [33][35]