Core Viewpoint - The article discusses the recent controversy surrounding Sam's Club due to the removal of certain popular mass-market products, which has led to customer dissatisfaction. The core issue revolves around the need for unique and high-value products in membership stores to justify membership fees [1][3]. Group 1: Membership Store Dynamics - Membership stores like Sam's Club have gained popularity as consumers seek unique and high-value products, especially after years of homogenized offerings from standard supermarkets and hypermarkets [3]. - Historically, membership stores were not mainstream in China due to low acceptance of paid membership systems, but they have now become favored by consumers due to their distinctive product offerings [3][4]. - Sam's Club previously had around 70% of its products as differentiated non-local items, which attracted many consumers [3]. Group 2: Supply Chain and Competition - Sam's Club and Costco possess strong supply chain capabilities, allowing them to manage a limited SKU count of around 4,000, which is one-third of that of hypermarkets, leading to higher sales efficiency [4]. - The rise in popularity of membership stores has attracted numerous competitors, intensifying the competition for supply chain resources and product differentiation [4][5]. - Many new entrants in the membership store market tend to replicate successful products from established players like Sam's Club and Costco, which dilutes the uniqueness of Sam's offerings [4][5]. Group 3: Product Strategy and Market Adaptation - The removal of mass-market products from Sam's Club is not expected to significantly impact the business, as the overall SKU count remains high and product adjustments are a common practice [6][7]. - The real challenge for membership stores lies in maintaining product differentiation and competing with online retailers for customer attention [7]. - To address these challenges, membership stores need to accelerate the iteration of unique products and enhance their online presence to capture more customers [7].