Behind the "Sam Incident": China's supply chain is advancing from "economies of scale" towards "standardized output"

Recently, Sam's Club has been embroiled in a product selection controversy. Due to the intensive removal of many high repurchase rate, high cost-effective products, and the introduction of popular brands such as Oreo, Weilong, and Liuliumei, Sam's Club members have raised concentrated doubts about its "product selection downgrade." However, does the so-called entry of popular brands really represent the "collapse of Sam's Club quality"? In fact, there is a cognitive difference in the logic of customized supply chain of membership-based supermarkets from the outside world. The underlying logic of Sam's customized supply chain is differentiated value creation centered around member demand, which fundamentally determines that its product selection standards are not simply based on "brand hierarchy" judgment, but a comprehensive evaluation of supply chain collaborative capabilities. Therefore, behind the controversy, the possibility of popular brands entering Sam's Club has never been zero, but is a natural result of the upgrade iteration of popular brands. The core weapon of differentiated competition Sam's Club has always established a strict supplier admission system, requiring all products to pass direct sourcing certification from global high-quality sources. For example, only specific parts of beef that have been grain-fed for over 150 days and can be fully traceable throughout the cold chain are selected, and durians come from orchards certified by the Malaysian Ministry of Agriculture with "trees aged over 25 years" and a meat yield of over 40%. This almost obsessive quality control has led to a high repurchase rate of 92% for its own brand, Member's Mark. This is just one aspect of Sam's Club. Another aspect of Sam's Club is not satisfied with regular procurement and sales, but also delves into the supply chain, customizing and developing products based on member insights, their own experiences, and brand partnerships. In this process, Sam's Club not only introduces products, but the core of this product selection mechanism is to meet member needs. Sam's Club, which adheres to the business philosophy of "members first," focuses on understanding member needs and trends, and even requires themselves to be half a step ahead of member needs. Similarly, Pandonglai also focuses on differentiation when selecting products. The SHIYUE DAOTIAN Wuchang rice introduced by Pandonglai is known for its high-quality origin and unique taste in the rice category, meeting consumers' demand for high-quality staple foods. The "Kylin Craftsman" iron pot stands out in the kitchenware field with its solid materials and reasonable prices, distinguishing itself from other similar products on the market that rely on traffic marketing. This is also strong evidence of Pandonglai's differentiated competition through unique product selection. "Value co-creation" instead of "brand dependence" The deep-seated demand of Sam's Club's customized supply chain is to cultivate supply chain partners who can grow together, rather than simply seeking private label manufacturers. This means that entering brands need to maintain their own style and innovation capabilities, complementing the value of Sam's Club. From the perspective of Weilong's research and development capabilities and quality control, the brand has maintained a leading position in the spicy snack food market with continuous iterations of star products such as spicy strips and Mo Yu Shuang, as well as defining the industrialization path of the food industry. Recently, the production line of the seventh generation of Mo Yu Shuang by Weilong was unveiled to the public for the first time. According to the introduction, this production line uses a disruptive design to condense the four core processes of Mo Yu Shuang production in a double-layered three-dimensional space, reducing the floor area by half compared to the sixth generation production line, while doubling the production capacity and increasing efficiency by 80%. In addition, Weilong also has a "Shanghai-Luohe Dual Research Center," focusing not only on flavor innovation but also conducting industrial standardization research in collaboration with a team of academicians, transforming the "experience dependency" in traditional processes into standardizable technical parameters, enabling each new product to strike a balance between unique flavor and industrial feasibility. Data shows that the high-fiber beef mushroom konjac customized by Weilong for Sam's Club entered the top 10 in the leisure snack category within ten days of its launch, indicating that what the market recognizes is the combination of "Sam's Club standards + brand characteristics" rather than simply relying on the "brand halo." At the same time, Weilong retains brand independence in cooperation, reaching middle to high-end household consumption scenarios through Sam's Club channels, and then using member feedback from Sam's Club to drive product development, which is a reflection of healthy supply chain relationships. Similarly, Pandonglai's introduction of Co-Emperor Vitamin E Milk follows a similar logic. This product is jointly developed by Beijing Union Medical College's skin disease research institute in Nanjing and has a solid reputation in the field of effective skincare. Pandonglai did not reject the brand despite the "fake Co-Emperor" rumors, but instead allowed it to be vindicated through its strict product admission and review system, showcasing the mutual achievement between Pandonglai and the brand, creating value for consumers together. When Dennis and other supermarkets introduce some regional specialty brands, they also focus on exploring the potential of products in partnership with brands, expanding the market, rather than treating the brand as a private label tool. Transmitting a national brand "quality consensus" Behind the Sam's Club controversy is the consumer's upgraded understanding of the relationship between "customization" and "quality." Sam's Club's practices show that a true customized supply chain does not lower standards, but through more precise demand matching and stricter process control, it makes every link a supporter of quality. When a national brand like Weilong can maintain its independent identity in the international supermarket system and achieve value output, what it demonstrates is not only the strength of the enterprise, but also the advancement of China's supply chain from "scale advantage" to "standard output." This advancement may be the deep-seated inspiration that Sam's Club's customized supply chain leaves to the industry: brands are not superior or inferior, but those that can continuously create unique value in the supply chain are good partners.