Research on the Application of Membership System in Market Management: Evidence from China

Abstract

Under the strong competition in the retail industry, large warehouse membership supermarkets have a stable and large consumer base in the market with strong competitiveness. This paper selects two case studies, Costco, which is the world's leading warehouse membership supermarket, and Freshippo, which has newly emerged in the Chinese market, for comparative analysis to explore the industrial structure behind the membership system in the development process and special innovations made by local membership supermarkets in China to satisfy consumers. The Chinese retail market is significantly different and requires localized transformation and innovation in order to attract local consumers to join. The paper also explores Freshippo's attempts to increase the brand's competitiveness in the face of the enormous convenience of online shopping in China, namely, the innovation of an online + offline model and the addition of several consumer benefits to attract more consumers to join the membership family. Through the integration and analysis of the development strategies of two membership supermarkets, we offer specific advice on the next development of membership supermarkets.