Core Insights - The article discusses the expansion of Sam's Club into smaller cities through the establishment of "Sam's Preferred Supermarkets" and "Sam's Selected Hourly Delivery" services, which cater to local consumers without requiring a membership fee [1][2][5]. Group 1: Business Model and Strategy - Sam's Club is adapting its business model by creating smaller, community-based stores that mimic the experience of its larger membership warehouses, allowing consumers to access products without the membership fee [1][4][5]. - The new stores maintain a simplified and bright design, offering a "warehouse experience" while being smaller than traditional Sam's Club locations [4][5]. - The article highlights the rise of individual resellers who purchase products from Sam's Club and sell them in smaller quantities to local consumers, indicating a growing market for Sam's products in smaller cities [15][16][20]. Group 2: Consumer Behavior and Market Dynamics - Consumers in smaller cities are increasingly interested in premium products, leading to a demand for Sam's Club items, which are often sold at a significant markup by resellers [22][27]. - The article notes that the perception of Sam's Club as a symbol of a better lifestyle is prevalent among middle-class consumers in smaller cities, who are willing to pay higher prices for the brand's products [28][30]. - There is a growing trend of community-based group buying, where individuals pool resources to purchase Sam's products, reflecting a shift in consumer behavior towards collaborative purchasing [12][14][16]. Group 3: Challenges and Concerns - The article raises concerns about the quality control of products sold through resellers, as there have been reports of spoiled goods and potential counterfeit products [14][32]. - Sam's Club's parent company, Walmart China, has stated that it does not endorse these reseller practices, yet the reality on the ground shows a blurred line between official and unofficial sales channels [23][25]. - The potential for brand dilution and reputational risk is highlighted, as the proliferation of unregulated resellers could impact consumer trust in the Sam's Club brand [30][32].