Core Viewpoint - The article discusses the differences between two retail models in China: Sam's Club and Pang Donglai, highlighting how social structures and urban environments influence their business strategies and customer relationships [2][11]. Group 1: Business Models - Pang Donglai offers a long-term companionship service that is more traditional and localized, suitable for China's familiar social structure [2][12]. - Sam's Club operates on a membership sales model to enhance customer loyalty and a direct sales model to reduce costs by collaborating directly with manufacturers [5][6]. - In 2023, Sam's Club generated 80 billion in revenue from 48 stores in China, averaging 1.67 billion per store, which is ten times the revenue of Hema stores [4]. Group 2: Social Structure Impact - The article emphasizes that the social structure is a core differentiator between the two retail models, with Sam's Club thriving in urban areas characterized by a "stranger society" and Pang Donglai succeeding in smaller cities with a "familiar society" [8][11]. - Sam's Club's business logic is based on standardized offerings that provide consumers with stable expectations, while Pang Donglai's success is rooted in community recognition and social relationships [11][12]. - The article notes that the population structure and social dynamics in smaller cities have stabilized, making them more conducive to the business model of Pang Donglai [11].