In recent months, the retail landscape in China has witnessed an intense battle, marking a significant shift towards price competitionThis wave of competition has been prominently represented by Hema Fresh, a leading retail brand that has undergone transformative pricing strategies, referred to locally as the "Move Mountain Price". Originating in Shanghai, this initiative has expanded nationwide, igniting fierce discussions among consumers who are both witnesses and participants in this retail showdownInspired by the candid observations of these consumers, one might say the essence of real commerce often unfolds in its simplest form.

At the beginning of August, a price war erupted over a popular durian mille-feuille cake, quickly taking center stage on social media platforms

As shoppers in lower-tier cities remarked, "Why hasn’t the price dropped here?" the fervor escalatedHema’s "Move Mountain Price" initiative was formally rolled out across 15 cities in China, mirroring the locations of Sam's Club outlets, its key competitorThe situation poignantly illustrates an unrestrained tug-of-war between these two retail giants.

The battle for consumer loyalty that Hema and Sam’s Club are engaged in is merely a microcosm of a larger evolution happening within the retail sectorIn recent years, traditional retail behemoths have struggled to adapt, while new species of retail have emergedIn this tumultuous environment, many once-familiar retail names have disappeared from everyday life.

Interestingly, following the launch of the “Move Mountain Price,” Hema has also introduced terms like “Tug of War Prices” and “Don’t Chatter Prices.” Consumers have embraced the spectacle of this lively commercial competition, cheering on the skirmish with comments like, “Let the battles begin! The louder, the better!” In this environment, wallet votes carry significant weight: the retailer that offers more affordable and high-quality products is the one to win the consumers' favor.

The reality of the business war is fundamentally straightforward.

Recently, Hema pushed a durian mille-feuille cake weighing 470 grams with a price tag of 42 RMB, creating a sensation within consumer circles and across social media platforms

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This strategy allowed Hema’s “Move Mountain Price” to break new ground.

However, the "Move Mountain Price" concept officially debuted in Shanghai and Beijing back in late JulyShoppers immediately recognized the name's intention—targeting Sam’s Club directlyWhile Sam’s Club hesitated to introduce its own “Slash Sam’s Price” as some online users suggested, their product strategies reflected that they too were in the frayPrice comparisons between the two brands were meticulously compiled by netizens, showcasing a steady stream of price cuts on both sides.

From the early pricing of 128 RMB for Sam’s Club’s durian mille-feuille to Hema dropping theirs to 99 RMB, the tit-for-tat began

Following their rapid adjustments, Hema tumbled to 89 RMB and Sam’s Club quickly matched itNotably, the cake’s price plummeted to an eye-catching 42 RMB from Hema, prompting many to highlight that for 42 RMB, they receive a more modest portion compared to Sam’s Club’s 1,000-gram offering priced at 85 RMB, indicating Sam’s Club still held the edge in value.

In an ongoing battle across various cities, Hema’s price for the 470-gram durian mille-feuille cake plummeted to 39.9 RMBYet discerning consumers raised concerns regarding the quality of durian and cream used, prompting discussions about price comparisons being inconclusive without a full breakdown of the products involved.

Consumer interests primarily revolved around the price as Hema expanded its scope of the “Move Mountain Price” to encompass a broader range of products such as Swiss rolls, pork mooncakes, salmon, and grapes

Influencers on platforms like Xiaohongshu began documenting price comparisons directly related to both retail chains, becoming a focal point for shoppers wanting to capitalize on the ongoing rivalry.

As businesses engage in price battles, consumers have been quick to take advantage of the situation, often expressing their enjoyment of the skirmishA consumer known as Chen Mingming (pseudonym) stated she appreciated observing these price wars, saying, “I love to see businesses compete on pricing; the more frequent, the better.” However, paradoxically, even as consumer shopping benefits from these crisscrossing price reductions, reports show that popular items like the durian mille-feuille saw an impressive statistical increase of up to 11 times in sales in a matter of weeks.

The growing audience around this competitive spectacle has rapidly fueled an escalation, with Hema unleashing a promotional frenzy on August 21, offering the desirable durian mille-feuille for free under certain spending conditions

This promotional event coincided with the extension of Hema’s price initiative across fifteen key cities, including tier-one cities like Shanghai, Beijing, and Shenzhen.

During a recent visit to Hema’s physical stores, the company defended its "Move Mountain Price," citing a commitment to deliver not only more products but fresher and more value-driven optionsTheir approach mirrors the dedication embodied in the mythical story of the 'Old Fool Who Moves Mountains.'

Consumers, however, have grown increasingly accustomed to these marketing tacticsBack in December 2021, Hema introduced several goods under a “Decisive Price” label, reflecting significant price reductions compared to its competitor Dingdong Maicai

Shoppers speculated whether this “Decisive Price” tag implied a direct affront to Dingdong, a narrative Hema quickly rebuffed as a routine promotional function.

Meanwhile, a cascade of discounting has been witnessed across various segments of retail, showcasing how fierce pricing wars can lead to substantial growthThe spring saw the coffee industry embroiled in its own cutthroat competition between Luckin Coffee and Starbucks, where aggressive pricing tactics afforded Luckin its best quarter yet.

As traditional e-commerce platforms redefine their strategies, we also see major players like Alibaba and JD.com pivot back to their roots, focusing on value-driven propositions, further exacerbating the competitive landscape in the retail market.

An essential factor in this ongoing price war is the underlying battle for a shared demographic: the middle-class consumer group

Industry experts have emphasized that the "price war" between Sam’s Club and Hema is fundamentally a fight for consumer footfall.

“If we lose the competition, it indicates that consumers may gravitate towards alternatives,” said Hema’s CEO Hou Yi in a recent interview, affirming the long-term nature of this competitive climateThe “Move Mountain Price” represents not just a marketing strategy for Hema, but rather a critical shift that underscores their challenge against global retail giants.

Sam’s Club, a high-end membership store under the Walmart umbrella, has thrived since its establishment in 1983. It launched its first Chinese store in 1996, marking a new era in China’s retail market, primarily targeting affluent consumers and members alike

Currently, Sam’s Club has 45 stores in 25 cities, with plans to expand even further.

The surge of membership-based retailing began with the opening of Costco in Shanghai in 2019, a pivotal moment that spurred various players in the regionNow, the explosive growth of membership stores is evident with competitors emerging at every turn.

Despite Sam's Club’s significant foothold, challenges loom for traditional stores as we witness a gradual decline among legacy retailers in the local sceneWith ongoing shifts in consumer shopping preferences and shopping habits undergoing a significant reset due to e-commerce and global events, many traditional retail giants find themselves struggling.

Recent reports suggested possible acquisition discussions regarding Yonghui Superstores by JD.com, highlighting the struggles faced by many supermarkets today

The longevity of such debates suggests an ongoing existential crisis within the sector, celebrating only the swiftest to adapt and evolve.

As we reflect on two months ago, Carrefour shuttered its first membership store in China, concluding its viability there while concurrently revealing higher losses within the parent companyAmid this broader picture of transformation and recession, Sam's Club continues to flourish, yet Walmart’s strategy has reflected closures and downsizing, indicating a cautionary tale within the retail landscape.

The turbulence experienced by these erstwhile retail giants illustrates the profound changes rippling through the industry