Core Insights - The price difference between Sam's Club and Walmart for similar products is raising concerns among members, with approximately 25% of sampled items priced higher at Sam's Club [1][4][6] - Sam's Club's traditional value proposition of "good products at low prices" is being questioned as members compare prices across platforms [2][3] - The strict supplier selection process that once supported Sam's Club's reputation for quality is facing challenges as pricing pressures increase [6][8] Pricing Discrepancies - A specific example shows a Clarins Double Serum priced at 699 yuan at Sam's Club, while the same product is available for 599.31 yuan on Walmart's platform, indicating a price difference of 99.69 yuan [3][4] - An analysis of 40 products revealed that about a quarter had lower prices on Walmart's platform compared to Sam's Club, with price differences ranging from a few cents to 50 yuan [4][5] - Price competition is weakening for Sam's Club, as some products are found to be cheaper on other platforms, such as a 24-pack of tea priced at 59.9 yuan at Sam's Club compared to 52.29 yuan on Taobao [4][6] Supplier Dynamics - The pressure to maintain both quality and low prices is shifting the balance for suppliers, with some feeling the strain and choosing to exit the Sam's Club system [8][10] - Suppliers must navigate a rigorous selection process to become part of Sam's Club's supply chain, which includes a comprehensive evaluation of various factors [6][7] - The increasing emphasis on low prices has led to a broader selection of suppliers, with some lower-quality brands entering the system due to competitive pricing [8][10] Membership and Expansion - Sam's Club has seen significant growth in membership, with approximately 900,000 paying members and plans to continue expanding its store presence in China [9][10] - The rapid increase in store numbers necessitates a larger supply chain, leading to ongoing adjustments and evaluations of suppliers [10][11] - The membership fee structure, which ranges from 260 to 680 yuan annually, is designed to attract middle-class consumers seeking quality and value [6][9]

Core Viewpoint - The article discusses the challenges faced by Sam's Club in maintaining its reputation for "good products at low prices," as recent price discrepancies and changes in product offerings have led to member dissatisfaction and trust issues [2][3][4]. Pricing Discrepancies - A comparison of prices between Sam's Club and Walmart revealed that approximately 25% of the sampled products were priced higher at Sam's Club, with significant price differences noted for popular items [2][7]. - For instance, a Clarins Double Serum was priced at 699 yuan at Sam's Club, while it was available for 599.31 yuan on Walmart's platform, indicating a price gap of 99.69 yuan [6][7]. Supplier Selection and Pressure - Sam's Club has a stringent supplier selection process, where suppliers often enter the system through intermediaries or distributors, which can complicate the procurement landscape [4][15]. - Suppliers are under increasing pressure to provide lower prices, with reports indicating that Sam's Club is emphasizing lower pricing in its selection strategy, which has led some suppliers to withdraw from the partnership [12][10]. Membership and Trust - Membership fees at Sam's Club are set at 260 yuan or 680 yuan, and the trust of members is built on the promise of quality and competitive pricing [10]. - The shift in product offerings and pricing strategies has raised concerns among members, leading to a potential erosion of trust in the brand [3][4]. Expansion and Supply Chain Dynamics - Sam's Club has been rapidly expanding its store presence in China, with plans to open 8 to 10 new stores annually after 2025, which increases the demand on its supply chain [14]. - The expansion has led to a continuous adjustment of the supplier network, with some suppliers exiting due to capacity constraints or inability to meet pricing demands [14][12]. Internal Referral Systems - Many suppliers rely on "internal referral" systems to gain entry into Sam's Club, often facilitated by long-term trade partners who have established relationships with the procurement team [15][16]. - There are also service providers claiming to offer "internal entry channels" to Sam's Club, charging significant fees for their services, which raises questions about the transparency of the supplier selection process [17].