Insights from Sam’s Club Product Selection: Industry Transformation in Chilled Fresh Pork Packaging

Recent discussions around Sam's Club product selection have drawn public attention. The"Low-Sugar Orion Pie"incident reflects not just a product quality issue, but deeper selection logic behind the scenes. From its launch in early June to its removal from both online and offline shelves in mid-July, the move—though officially explained as a"nationwide adjustment"—was widely interpreted as a direct response to member feedback.

1. Strategic Choices in Fresh Retail

Sam's Club focuses on"high-frequency consumption scenarios of mid-to-high-end families"moving away from a"full-category stacking"approach to a"less but better"philosophy. This strategy targets quality-driven demand while differentiating through large packaging, exclusive products, and high cost-effectiveness.

The chilled pork category exemplifies this success. In 2024, Sam's pork sales exceeded ¥5 billion, accounting for 28% of its fresh revenue, with large packages contributing over 60%. Key competitive distinctions include:

- Pricing: Sam’s large pork packages are 5%–8% cheaper than Costco’s but about 10% higher than Hema's.

- Product Strategy: While Costco relies on imports (e.g., U.S. pork ribs) and Hema emphasizes local black pork, Sam’s uses a mixed “import + local” approach.

- Packaging Size: Sam’s averages 1.2 kg per package, compared to Costco’s 1.5 kg and Hema’s 0.8 kg “family pack.”

Sam's modified atmosphere packaging (MAP) for large pork portions highlights its departure from traditional retail, new retail, and fresh e-commerce models. This evolution signals a broader shift in China's fresh retail sector from scale expansion to quality enhancement.

2. Packaging Evolution: From Passive Preservation to Active Control

- Traditional Retail: Relies on tray overwrapping with cling film, limited by a 3–5 day shelf life due to oxidation and moisture loss. Although material costs are low (~¥0.1/unit), hidden loss rates reach 15%–20%.

- New Retail & Fresh E-commerce: Brands like Hema “Daily Fresh” and Dingdong Maicai use small MAP with daily distribution or quick delivery, extending shelf life to 3–5 days and replacing traditional wet markets.

- Sam’s Club: Applies MAP technology to large-scale family packages. By adjusting gas ratios (e.g., 70% O ₂ + 30% CO₂), Sam’s achieves a 7-day shelf life—matching e-commerce freshness while reducing waste. Supported by strict sourcing and traceability systems, Sam’s also pioneered visual recognition technology for pork categories in 2025, boosting packaging automation and efficiency.

3. Technology Frontier: AI Vision and Labeling Solutions

Desigco's AI-powered vision and automated labeling solutions enhance packaging precision and efficiency for chilled pork. This system accurately identifies cut types and applies labels automatically, reducing human error and contamination risks while ensuring full traceability.

Sam's pork packaging strategy reflects a deeply localized membership model in China. By combining technical barriers and supply chain strength, Sam’s has built unique advantages that appeal to its core customers.

This transformation is more than just one retailer’s success—it illustrates a broader shift in Chinese retail from price wars to value creation, and from scale to quality. The evolution of chilled pork packaging, from passive preservation to smart control, embodies this change, driving both commercial and social value.