Sam's Club China Faces Backlash Over Product Changes: Members Question Value of Membership
Sam's Club in China is facing a significant backlash from its members, as the company's recent product changes have led to accusations of lost differentiation and value. The membership-based retail store, known for its unique and high-quality offerings, has recently introduced mass-market brands like Orion, Weilong, and Hali-O, which are readily available in ordinary supermarkets. This shift has sparked outrage among Sam's Club members, who pay a premium membership fee for access to exclusive products. The introduction of common brands dilutes the perceived value of the membership, leading to questions about the worth of their investment.
16 July 2025
The sentiment on social media is overwhelmingly negative, with many members expressing feelings of betrayal and disappointment. Users have taken to platforms like Weibo to voice their concerns, with the hashtag #山姆丢了差异化也就丢了会员# (Sam's Club lost its differentiation and thus its members) trending. The core issue for many is the erosion of trust and the feeling that their loyalty is no longer valued. "Why should I pay a membership fee to buy common goods that Hema and Yonghui also have?" asks one member, encapsulating the widespread sentiment.
The comparison to Zhong Xue Gao, a Chinese ice cream brand that faced a severe trust crisis leading to its decline, underscores the potential impact of Sam's Club's decisions. Lin Yue, Chief Consultant at Ling Yan Management Consulting, emphasizes that the survival of a paid membership model relies on providing continuous, significant, and unique value. He warns that if members perceive products to be similar to those elsewhere, the membership fee becomes questionable, and abandonment of membership is inevitable.
Wang Guoping, a senior retail analyst, points out that while traditional supermarkets cater to a broad customer base, Sam's Club targets specific demographics, necessitating differentiation in product specifications and content. The recent introduction of mass-market brands, even if customized for Sam's Club, fails to meet consumer demands for targeted differentiation and aligns with their psychological needs.
The crisis of trust and the perceived disrespect towards its target demographic could have long-term implications for Sam's Club in China. The removal of controversial products without clear explanations further erodes trust, exposing a wavering decision-making process. As one member puts it, "When 'strict selection' becomes 'making do,' a membership store is no different from a wet market; why pay an entrance fee for a wet market?"
Sam's Club must re-prioritize consumer demands, reshape differentiated selection, establish transparent selection mechanisms and quality control standards, and uphold trust for long-term sustainability. The focus should not only be on product selection but also on maintaining robust quality control, which is paramount for a traditional industry like supermarkets. Failure to address these concerns could lead Sam's Club down a path similar to that of Walmart, implying a decline in perceived value and differentiation.
