Core Insights - The article discusses the success of "Happy Farm Membership Store" in contrast to other membership stores, particularly highlighting its ability to thrive despite the struggles faced by competitors like Sam's Club [2][5][10] - Happy Farm is not merely a "high-end version of Happy Farm" but is described as a "grassroots version of Sam's," indicating a different operational model that appeals to consumers [6][10] Group 1: Market Performance - Happy Farm Membership Store opened its first location in Shenyang and has experienced overwhelming popularity, with long queues even on weekdays and sustained high foot traffic during holidays [5][11] - The second store opened in a previously underperforming commercial area but also attracted significant crowds, demonstrating its strong market appeal [5][11] Group 2: Business Model Comparison - Sam's Club relies heavily on a membership fee model that creates a "consumer alliance," but has faced criticism for its shift towards more mainstream product offerings, leading to a decline in member trust [8][10] - In contrast, Happy Farm's membership system is designed to offer price commitments rather than just a barrier to entry, with a "refund anytime" policy that reflects confidence in product quality [8][10][15] Group 3: Consumer Trust and Quality Assurance - Happy Farm's success is attributed to its ability to provide high-quality products at competitive prices, addressing the uncertainties often associated with traditional markets [13][15] - The store sources 80% of its products from self-operated farms, ensuring quality control from the source, which enhances consumer trust [13][15] - The combination of vertical self-operation, quality selection, and on-site food preparation creates a robust "quality trust" that traditional markets cannot offer [15][17] Group 4: Consumer Experience - The appeal of Happy Farm lies in its ability to merge the affordability and atmosphere of traditional markets with the reliability and quality assurance of supermarkets [15][17] - The store effectively captures the modern consumer's desire for quality without the worry of product uncertainty, fulfilling a critical market demand [17]

Core Viewpoint - The closure of Hema's last X membership store in Shanghai marks the end of its membership store experiment, reflecting a broader trend of membership store failures in China [1][4]. Group 1: Membership Store Closures - Hema's last X membership store will officially close on August 31, 2023, completing the shutdown of all 10 Hema X membership stores nationwide [1]. - Metro has also struggled with its membership model, closing four membership stores in major cities since 2024, indicating a failure to establish a sustainable membership business [3]. - Carrefour has drastically reduced its store count from over 300 to just 4, following its acquisition by Suning, which has seen little success in innovating the brand [3]. Group 2: Comparison with Established Brands - Established membership stores like Sam's Club and Costco have expanded cautiously, with Sam's Club operating around 52 stores in China since 1996, while Costco has only opened 7 stores by 2025 [4]. - In contrast, local brands have aggressively opened membership stores, which has led to high financial demands and unsustainable growth [4]. Group 3: Consumer Behavior and Market Dynamics - Chinese consumers generally prefer free entry and low-margin sales, leading to low acceptance of membership fees, even for established brands like Sam's Club and Costco [4][5]. - The primary consumer base willing to pay for membership is the middle class, but this demographic has shrunk, limiting the potential for large-scale expansion of membership stores [5]. Group 4: Supply Chain and Operational Challenges - The success of membership stores heavily relies on strong global supply chain integration and proprietary brand development, which local brands lack [6][8]. - Local brands often depend on existing supply chains for imported goods, resulting in high product homogeneity and reduced market appeal [8]. - Membership stores typically offer a limited SKU selection to control costs, which can lead to inventory issues if product selection fails [9]. Group 5: Future Outlook - The closures of various membership stores signal a need for local brands to reassess their strategies, focusing on supply chain capabilities, consumer habits, and operational models to potentially develop a successful domestic membership store brand [9].

Core Viewpoint - The delisting of Renrenle reflects the severe challenges faced by the traditional retail industry and the competitive pressure brought by the rise of new business models [1] Group 1: Company Overview - Renrenle, once known as the "first private supermarket stock," has been delisted from the Shenzhen Stock Exchange, with its stock being terminated on July 4 [1] - The company has experienced continuous losses over the years, leading to store closures as a damage control measure, but this has not significantly improved its performance, ultimately resulting in its delisting [1][4] - As of the end of 2024, Renrenle had 32 stores, all of which were direct-operated, having opened 1 new store, closed 45, and transferred 15 stores [5] Group 2: Financial Performance - Renrenle's financial reports indicate a continuous decline, with net profits being negative for three consecutive fiscal years from 2021 to 2023, and a significant drop in revenue of 49.86% in 2024, amounting to 1.43 billion yuan [4] - The company's market capitalization has severely decreased, with its stock price at 0.36 yuan per share as of July 3, 2023, leading to a total market value of approximately 158 million yuan, a stark contrast to its peak market value of over 10 billion yuan [5] Group 3: Industry Challenges - The traditional retail sector is under significant pressure due to the rise of e-commerce and new retail formats such as membership stores and discount stores, which have diverted business from traditional retailers [3][6] - Competitors like Carrefour have also faced challenges, with many of their stores closing in the Chinese market, indicating a broader trend of decline in traditional retail [6] - The emergence of instant retail has intensified competition, with companies like Meituan and Alibaba engaging in aggressive pricing strategies, making it difficult for traditional retailers to compete [8] Group 4: Future Outlook - Industry experts predict that more traditional retailers may face store closures or the need to transform their business models in the coming year, as the competitive landscape continues to evolve [8] - The pressure on traditional retailers to adapt to new market conditions is increasing, with suggestions for them to learn from successful models in service, delivery, and supply chain management [8]