Title: Sam and Hema Engage in Business War Over Pricing Strategies
Subtitle: Warehouse-style membership stores fight over price dominance
Date: [Insert Date]
With the battle for dominance in China’s supermarket sector intensifying, two major players, Sam’s Club and Hema, have commenced a fierce business war, with pricing at the forefront of their competition.
The popular internet celebrity supermarket, Sam’s Club, has gained significant traction in the market. However, Hema has responded with a pricing strategy meant to undercut Sam’s Club at every turn.
The conflict between the two giants became apparent recently when they competed over the sale of durian layer cake. Initially, Sam’s Club priced the product at 128 yuan, only for Hema to price it at 99 yuan, a significant reduction. Determined not to be outdone, Sam’s Club lowered the price to 88 yuan. In response, Hema once again undercut them by lowering their price to 86 yuan.
This trend continued as both companies applied the same strategy to a variety of products – from mooncakes and watermelons to egg snacks. The one-yuan difference in pricing became a crucial element in their battle for supremacy.
According to reports, Zhu Xiaojing, president and CEO of Wal-Mart China, declared during an internal meeting that Hema is the only significant competitor to Sam’s Club in China. This statement underscores Hema’s growing influence in the market.
While Sam’s Club has adopted an arrogant attitude, Hema has opted for a more modest response. Hou Yi, the founder and CEO of Hema, highlighted their commitment to constant innovation and adaptability. He expressed gratitude for the recognition Hema has received from international peers, emphasizing their determination to catch up and succeed in the future.
In line with their ambition, Hema is set to open “Hema X” member stores in 2020, introducing a new chapter in their expansion journey. Already having 9 stores, including 6 in Shanghai, Hema aims to establish itself as a strong competitor alongside Hema Xiansheng and Hema Outlets.
As the business war between Sam’s Club and Hema intensifies, the outcome remains uncertain. However, it is evident that both companies are fiercely committed to securing their position in the Chinese retail industry.
[End of Article]
Reprinted from: Kuai Technology
Responsible Editor: Xuehua