China’s members-only retailers flourish, despite growing pressure on bricks-and-mortar stores
- Membership-only bulk retailers are growing in popularity in China’s big cities, catering to an increasingly wealthy and selective consumer population
- But it is unclear whether the model has large-scale appeal due to its relatively high price points and increasing competition from e-commerce stores
Beijing resident Yu has been shopping nearly exclusively at members-only bulk retail store Sam’s Club for about eight years, rather than buying his groceries online like many Chinese.
Even though he pays an annual membership fee of 260 yuan (US$40), Yu – who refused to give his first name – says it is worth it.
“It’s convenient,” said Yu, who usually spends between 1,000 yuan and 3,000 yuan each week for his family of six. “I just push a cart and get everything I need, one stop style.”
Membership-only bulk retailers have started mushrooming in China’s big cities in recent years, offering a relatively small but well-selected array of goods for more savvy consumers.
In addition to global brands like Sam’s Club, which is owned by Walmart, and Costco, an increasing number of local players are joining the bulk retail bandwagon. Superstore chains Yonghui and Hualian, as well as Alibaba’s grocery brand Hema Fresh, have all joined the fray. Alibaba owns the South China Morning Post.
While the trend is starting to catch on, membership-only retail stores are not an overnight phenomenon in China.