Are you a “Carrefour” or a “Sam’s Club” in the business world?
In addition to the popular trend of traveling and staycations during the pandemic, there has been a rise in local “Sam’s Club shopping groups” targeting the popular warehouse-style supermarket, Sam’s Club.
As Sam’s Club is a membership-based supermarket, customers need to apply for membership and pay an annual fee to shop there. The shopping group service eliminates the need to become a member and allows customers to order from the comfort of their homes, with items ranging from daily necessities, food, household items, kitchenware, to frozen foods being delivered directly to their homes.
In fact, the Sam’s Club shopping group emerged in mainland China during the severe period of the pandemic.
Cities like Shanghai experienced lockdowns, leading to the rise of community group purchases. After residents gathered their shopping lists, they ordered rice, fresh vegetables, meat, grains, and other groceries online through group purchasing platforms. The goods were then delivered on a scheduled basis and distributed by residents themselves.
This change in consumer behavior resulted in a significant decrease in the number of people shopping at supermarkets. However, expenses such as rent, utilities, and labor remained high, putting a lot of pressure on businesses.
Understand Your Position and Seize Your Advantages
After the pandemic, Sam’s Club has gained popularity in recent months due to its high-quality and affordable products, spacious shopping environment, and the introduction of its own popular private label products in the Shenzhen-Hong Kong region.
Sam’s Club continues to open new stores, with employees working tirelessly, while its competitor Carrefour has been closing several stores.
Both are large warehouse-style supermarkets, but Carrefour, being non-membership-based and offering lower prices, has held the upper hand for many years.
However, as times change, people have higher requirements for their quality of life and food safety. Many are willing to spend money at Sam’s Club to purchase imported goods and high-quality products without additives.
The trust in Sam’s Club’s own private label products is also high. Although Sam’s Club focuses on high-quality products, its prices are competitive compared to similar products in the market, gradually establishing an image of high cost-effectiveness and being “good and affordable”.
Sam’s Club’s membership system has remained unchanged for many years, and the consumers willing to pay the additional membership fee are precisely its target audience, who value quality and safety.
As a competitor, Carrefour, seeing the unfavorable trend, will not sit idly by. They have opened new branded stores with a different positioning, improving the quality of their products and pricing, and introducing a membership system to target high-end customers.
However, understanding customers’ preferences requires a series of product research, data collection, and analysis. Attracting and solidifying a new target audience is a process that starts from scratch and cannot be achieved overnight.
In contrast, Sam’s Club has remained consistent in its operating model, product sourcing, and target audience throughout the years. Despite facing various challenges and pessimistic factors, its positioning has not changed easily.
Market demands and trends are constantly changing, and it is necessary to review, adjust, and improve business operations. However, it is important not to blindly follow the current, as it will make it even harder to establish a strong foothold.
Every industry has its own unique business techniques. Consulting with an experienced accountant will help you avoid unnecessary detours and grow your business.
Find the right people and do the right things, and everyone will become an expert.
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