Core Viewpoint - Sam's Club is facing a significant backlash from consumers due to a major shift in its product selection strategy, which has undermined the trust in its membership value system [1][3][11] Group 1: Membership Value Crisis - The removal of popular products such as sun cakes and low-sugar egg yolk pastries has led to a trust crisis among members, as these items were key drivers of consumer loyalty [1] - New products introduced, like low-sugar snacks from mainstream brands, have been criticized for lacking differentiation and quality compared to previous offerings [2] - Members are questioning the justification of the annual membership fee of 260 yuan (or 680 yuan for premium cards), feeling that they are no longer receiving unique or high-quality products [3][4] Group 2: Strategic Shift and Trust Erosion - A change in management has led to a focus on short-term profits, with a shift towards lower-cost products at the expense of previously popular, high-quality items [5][6] - The rapid expansion of Sam's Club in China, with 48 stores and over 5 million members, has resulted in quality control issues, including over 10,000 complaints about product quality in 2024 alone [7] - The core competitive advantage of Sam's Club, which relied on exclusive supply chains and health labels, is diminishing as the introduction of controversial brands raises concerns [8] Group 3: Consumer Reactions and Company Response - Many members are expressing their dissatisfaction on social media, with some opting to switch to competitors like Costco or Hema, and group cancellations of memberships are occurring in cities like Hangzhou and Chongqing [10] - The company's official response has been vague, attributing product removals to packaging issues without addressing the underlying selection logic, and denying reports of membership cancellations [10] Group 4: Industry Implications - The struggle of Sam's Club highlights the critical balance between targeting different consumer segments, as the attempt to cater to both middle-class elites and price-sensitive customers has led to a loss of core clientele [11] - Competitors like Costco maintain their reputation through unique offerings and customer engagement, while Hema captures market share with competitive pricing on fresh produce [12] - The crisis at Sam's Club underscores the need to rebuild a value proposition centered on exclusive products, quality, and stable supply to restore member trust and justify membership fees [13]

Core Viewpoint - Recent product adjustments by Sam's Club have led to consumer dissatisfaction, particularly regarding the removal of popular items in favor of more common products, raising questions about the selection criteria [1][10][17]. Group 1: Consumer Reactions - Many consumers expressed disappointment over the removal of favored products like rice pudding and low-sugar egg yolk pastry, stating that they are now offered items easily found in local supermarkets [3][8]. - Some customers have even reached out to Sam's headquarters, requesting the return of their preferred specialty foods [6]. - The sentiment among members is that they are being sold products that do not justify the membership fee, leading to feelings of being taken advantage of [10][22]. Group 2: Product Changes and Quality Concerns - Sam's Club has recently introduced new products in collaboration with popular brands, but the lack of brand recognition on some items has caused confusion and dissatisfaction among members [17]. - The newly launched low-sugar Good Friend pie, priced at 49.9 yuan for 48 pieces, received negative reviews for being overly sweet despite its low-sugar label [12][14]. - The recent product adjustments have led to a decline in consumer trust, as members feel that the quality and uniqueness of offerings are diminishing [17][22]. Group 3: Membership and Market Position - Sam's Club operates with an annual membership fee of 260 yuan for regular members and 680 yuan for premium members, positioning itself as a leading membership warehouse globally with over 800 stores [20]. - According to Pacific Securities, Sam's Club has achieved double-digit growth by catering to the differentiated needs of middle-class families, focusing on high-quality and cost-effective products [20]. - Experts emphasize that differentiation and product quality are essential for membership warehouse stores to maintain their value proposition and consumer loyalty [22].

Core Insights - Sam's Club is facing criticism regarding its product selection capabilities, particularly after the launch of a new product that has received negative reviews from members [1][4][8] - The company has experienced significant sales growth, with sales in China expected to exceed 100 billion yuan in 2024, contributing to two-thirds of Walmart China's performance [9][11] - There is a shift in product sourcing, with over 70% of products now sourced from Chinese suppliers, indicating a focus on local brands and products [12][13] Product Selection and Member Feedback - A new product, a special edition of the Good Friend cake, has been criticized for being too sweet and not meeting the expectations of members regarding its "low sugar" and "rich cocoa" claims [4][8] - Members have expressed distrust towards the Good Friend brand due to perceived discrepancies in product formulations between domestic and international versions [8] - The dynamic nature of Sam's product selection is highlighted, with a focus on maintaining a curated selection of around 4,000 SKUs to ensure quality and value for members [8][11] Expansion and Market Strategy - Sam's Club plans to open 6-7 new stores annually, with a target of over 60 stores by 2026, indicating aggressive expansion in the Chinese market [9][11] - The rapid expansion may be influencing product selection processes, leading to potential changes in supplier relationships and product offerings [11] - Local partnerships are being established, allowing local brands to enter Sam's shelves, which not only expands sales channels for these brands but also enhances Sam's reputation for quality [11][12] Management Changes and Strategic Focus - The retirement of the previous China president and the appointment of Jane Ewing has led to a restructuring of regional management to better respond to local market demands [12][13] - Ewing's strategy appears to continue the previous leadership's focus while intensifying the pursuit of growth, particularly through local sourcing and enhancing supply chain resilience [12][13] - The shift towards more domestic brands is seen as a strategic move to improve procurement efficiency and maintain product quality [12][13]

Market Overview - The market is experiencing volatility, with many investors selling U.S. Treasury bonds, leading to a 30-year Treasury yield of 5.089%, the highest level since October 2023, and a 10-year yield of 4.595%, the highest since February 2023 [1] - The Hang Seng Index closed down 1.19% amid these developments [1] Geopolitical Events - A shooting incident involving Israeli embassy staff in Washington has heightened concerns among the Jewish community, potentially leading to increased investment in safe-haven assets like Bitcoin and gold [2] - Domestic gold jewelry prices have surged, with prices for gold jewelry from Chow Tai Fook and Lao Miao rising to 1008 CNY and 1004 CNY per gram, respectively, reflecting a significant increase due to international gold price movements [2] ASEAN and Logistics Sector - The ASEAN concept is gaining traction, with Chinese Premier Li Qiang set to visit Indonesia and attend the ASEAN-China-GCC summit, highlighting Indonesia's market potential [3] - J&T Express has captured a 30% market share in Indonesia, with plans for network expansion, indicating a competitive edge in logistics due to lower cost structures compared to self-operated logistics by e-commerce platforms [3] Retail Sector Dynamics - U.S. high tariff policies are creating challenges for retailers like Sam's Club, which has seen a 40% increase in domestic beef procurement to mitigate tariff impacts, yet still faces significant cost pressures due to over 35% of imported goods [4] - Local retailers like Hema are positioned to benefit, with their M membership store brand accounting for 30% of sales and offering lower prices compared to Sam's Club, potentially capturing price-sensitive customers [4] Gaming and Entertainment Sector - Pop Mart's Labubu toy gained global attention after being featured by David Beckham, leading to a surge in sales and stock price [5] - The company reported a significant increase in sales in Europe and North America, with TikTok followers rising by 68% [5] Steel Industry Insights - The integration of steel and financial markets is deepening, with the China Steel Industry Association noting the growing influence of futures markets on the steel industry [8] - Major steel companies like Ansteel and Maanshan Steel are expected to benefit from this trend as futures trading becomes more prominent [8] Corporate Developments - Dongfeng Motor and Changan Automobile are progressing with a restructuring plan, which is anticipated to enhance operational synergies [6] - Pharmaceutical stocks are performing well ahead of the upcoming listing of Hengrui Medicine's H shares, which are priced at 44.05 HKD, indicating strong market interest [6] Dividend Stocks - Following interest rate cuts, there is a shift towards high-dividend stocks, with banks and public utilities like Jiangsu Ninghu Expressway announcing dividend payouts [7] Gaming Collaboration - Zhongxu Future has signed a three-year cooperation memorandum with Kaiying Network, focusing on overseas business growth and the development of popular IP games [9] - The company reported a 44.9% year-on-year increase in overseas revenue, indicating strong international market performance [10]

Core Viewpoint - Costco's recent launch of its city-wide delivery service has led to disappointment among members due to poor service quality and delivery issues, raising concerns about its competitiveness against rivals like Sam's Club [4][6][9]. Delivery Service Experience - Members have expressed dissatisfaction with the delivery service, citing issues such as lack of ice packs for frozen items and delayed delivery times, which have led to food spoilage [4][6]. - A member's experience highlighted that while Sam's Club offers a more efficient delivery service, Costco's delivery system appears to be underdeveloped and reliant on third-party services [6][7]. Comparison with Competitors - Sam's Club has established a more robust delivery system since entering China earlier, utilizing partnerships with local delivery services to enhance customer experience [7][11]. - Costco's delivery options include various pricing structures, but the overall experience has not met member expectations, especially when compared to competitors who offer free or faster delivery [8][10]. Market Position and Challenges - Costco has only seven stores in China, which contributes to higher delivery costs and limits its ability to compete effectively in the market [10]. - The company is perceived to be lagging in adapting to local market demands and improving its e-commerce capabilities, which could jeopardize its membership retention [9][11].

Core Viewpoint - Costco's recent launch of its city-wide delivery service has led to disappointment among members, highlighting issues with delivery speed, food quality, and customer service compared to competitors like Sam's Club [1][2][6] Delivery Service Experience - Members have reported slow delivery times, with some orders taking up to half a day to arrive, and inadequate packaging for perishable items, leading to food spoilage [1][5] - Costco's delivery options include "immediate delivery" and "scheduled delivery," both costing 20 yuan, which some members find unappealing given competitors' free or faster delivery services [5][6] Comparison with Competitors - Sam's Club has established a more efficient delivery system, having partnered with strong local partners and offering a "1-hour express delivery" service since 2018, which has contributed to its competitive edge [4][7] - Other competitors like Hema and Dingdong have also successfully implemented superior delivery services, reshaping consumer shopping habits [4][7] Challenges in E-commerce Strategy - Costco's e-commerce strategy has been slow to develop, relying initially on third-party services and only recently moving towards self-operated delivery systems [3][6] - The company currently lacks a dedicated customer service platform for e-commerce, leading to confusion and dissatisfaction among members regarding order fulfillment and returns [3][6] Market Position and Future Outlook - With only seven stores in China, Costco faces high delivery costs, which is reflected in its pricing strategy for delivery services [7] - The company needs to adopt more effective e-commerce practices and learn from local competitors to improve its market position and member satisfaction [7]

不少会员在试用 Costco 近期上线的全城配服务后，流露出失望的情绪。 "上海最快只能半日达，中午11点半下单，下午6点才送到，地图上看配送来回倒腾，最近这么晒的天气，袋子里甚至没有冰袋，我的冻虾已经发红了， 这不是在糟蹋食物吗？"家住长宁、碰上堵车开了1个多小时到达 Costco 上海闵行店的 Alice 准备找店员理论。 会员对 Costco 的信任，因缺失的冰袋和保温箱而有部分流失。 作者 | 彭倩 编辑 | 乔芊 "Costco 全城配是来劝退会员的吗？" 她发现，走进这家 Costco 中国内地的线下首店，看不到任何与配送服务相关的信息，哪怕大老远跑来门店向线下店员咨询情况，对方的回复则是：不 是一套系统，不太清楚线上的事情。但线上客服并未告知如何退货，售后退货的问题一时卡在原地。 对比之下，山姆的服务显得省心许多。上周五，她照例在下班前购买了一次山姆的冻品，"极速达"送到家门口只花费了1个小时，下班后她临时选择去打 球，当天晚上到家已经11点左右，山姆保温袋里的冰袋和冷冻食物都还好好的。 当会员超市"免费配送"、"小时达"在中国已是司空见惯，Costco "满足299元门槛还要收费"，"最快半日 ...

Core Viewpoint - Hema is shifting away from its ambition to replicate the Sam's Club model in China, as evidenced by the closure of several Hema X membership stores and a strategic pivot towards expanding its Hema Fresh and Hema NB formats [2][4][6]. Group 1: Hema's Strategic Shift - Hema X membership stores will reduce from a peak of 10 to 5 locations nationwide due to business adjustments [4]. - Hema plans to open nearly 100 new Hema Fresh stores in the new fiscal year, indicating a focus on core business areas [4][6]. - The closure of Hema X stores signals a departure from the membership model, as Hema aims to concentrate on Hema Fresh and Hema NB [4][6]. Group 2: Challenges Faced by Membership Stores - Other membership-based supermarkets like Yonghui and Carrefour are also facing operational difficulties, with reports of store closures and business contractions [2][9]. - The initial enthusiasm for membership supermarkets in China has waned, as many local retailers struggle to adapt the Sam's model to the Chinese market [9][12]. - The performance of Sam's Club in China remains strong, with a reported sales figure of 100.5 billion yuan and 50 stores by 2024, contrasting sharply with the struggles of local competitors [14][15]. Group 3: Market Dynamics and Future Outlook - The collective retreat of local "Sam's Club" imitators highlights the challenges in supply chain management, brand recognition, and operational efficiency compared to established players like Sam's Club [14][15]. - The retail landscape is evolving, and the ability of local companies to adapt and find their unique paths will be crucial for future success [12][15].