The added value of the paying members includes both the purchase of royalties and the unique purchase of fees, i.e. double excavation of the value and experience of the members.

Editor-in-Chief: This paper comes from the micro-public retail business finance (ID: Retail-Finance), author: 鹤翔, authorized by the State of Entrepreneurship.

In the latest edition of the China Facilitation shop TOP 100 series issued by China’s locking Association CCFA, the entire Chinese mainland faculties (hereinafter referred to as the “full house”) ranked at the top of the 2666 door shops.

In addition to tactical adjustments in the size of the market, the “Small Business Finances” observation found that, in February of this year, the entire family had introduced 128 yuan renminbi/year honorary cards to upgrade the new membership development system, the business strategy was also shifting from “to demand” to “require”.

Figure: All-facilitation shop roll-out

Over the past two years, the old model of “pay-for-membership” has yielded new results in domestic retailing. Businesses such as Costco, Summ, Boxes and Chase have accelerated the layout of warehousing member shops through the winds of the “member economy”, as well as on-line subscriptions, front-line integrated members and ecological membership systems.

As the first domestic paying member brand, the entire family began membership in 2014 and took the lead in the pilot payment model in Shanghai in 2016, where the number of paying members is very impressive today, and the whole family’s exploration of the “paying member system” is beginning to bear fruit.

In other words, the whole family provides a valuable reference for domestic shop enterprises to transition to a “pay-for-member system”.

The election to upgrade the pay-for-member system in a post-infecture competitive environment is, in the view of the constitutional principle of the Taiwan faculties expert, a sign of re-establishing and deepening consumer resilience.

On a point-by-side basis, it is worth thinking whether fee-paying membership can be a profitable model for domestic shop-house enterprises to reverse the “coal” scenario? What is the value of the retail enterprise’s pay-as-you-go membership system, compared to the free crediting system? What is the value that the system of paying members can really create for consumers?

The membership system was the first of its kind in the European club system (which has exclusive features of places and services), in the 1980s, in the form of business promotion in the Windhoek, in the wake of the passage of the 1990s to China, in the form of hundreds of stores, chains of supermarkets, etc., and in a symbolic manner created a free membership system to promote customers and widen marketing.

Prior to the introduction of the “new retail” concept, membership patterns in the retail industry remained at the inefficient, loose and passive levels: first, membership information was more used to store records rather than deep-level excavations; second, the value of members was limited to low-cost purchases rather than value addition; and thirdly, membership relations remained only at the commercial level and there was a lack of incentives for growth and solidarity.

The mind space of consumers has become more diverse as technological innovations in the intellectualization of the mindsets and the development of the whole range and multi-industrial retail markets, as well as claims for membership. Thus, the innovations of marketing handicrafts and membership make it a breakthrough for business to promote consumer resilience and dynamism, to tap the long-term value of users and to enhance profitability.

Based on the successful experience of the Amazonian Prime membership model, the Chinese Internet operator platform has opened up the exploration of localized paying members from 2015 onwards, with the participation of the Gin PPLUS member, the member of the Golding 88VIP, and the member of the SuningSuper. In turn, fee-paying membership has been the subject of electrical appliances, and market effectiveness depends on key indicators such as repurchase rates for core users, single-party prices and consumer frequency.

Figure: Members’ benefits in the Amazon

While the application and development of fee-paying membership in the shop responds to the demand for staples and upgrades, changes in the traditional retail industry related to membership are relatively slow.

As in the case of warehousing member shops, based on a “pay-for-member system”, which had been “at the cooling table” for more than 20 years before entering China, until the beginning of the seashop in Corstco in August 2019 became a landmark event, the “olders” of retailers, such as Medron, Fortunate and Grande, were targeted at a new business of the paying member store, which had erected a new profit growth point.

The “pay-for-member system” has become a cassava for one time and is inextricably linked to the retail market environment and consumption habits. While retail enterprises must provide more sophisticated services during stock competition and chain models designed for consumers as a starting point, fee-paying membership allows firms to develop stronger tying effects with high-quality middle-end users, followed by consumer upgrading and hierarchical trends.

At this stage, the rate of coverage of paying members is dominated by warehousing member shops, which also means that fee-paying members continue to be applied to other retail trades with little exploration space.

Figure: Facilities need to expand quality services

As far as the shop industry is concerned, there is little practice on the “paying member system”.

“The majority of convenience brands are either free-threshold membership, dominated by `consumption, membership’ strategies.” Wang’s Constitution states that activities such as the conversion of credits, the crediting of members’ cash, and the consumption of members’ daily scoring have become popular, homogeneous and difficult to attract and retain customers.

In some cases, the simple membership service of the faculties is not significantly different from that of non-members, can truly be derived from the value of membership and user fees are required.

The uniqueness of the family is that it is a “paying member” creator rather than a follower. In a sense, the “pay-for-member system” can be an effective path for domestic shop transition, or a profit model, or can be traced from home-wide practice.

At the heart of the membership economy is client-driven, giving consumers a broader, more accessible buying experience. This is a process of moving from commodity transactions to service transactions and consists of three stages of development, as can be seen through a 10-year survey of the economy of shop-friendly members:

The first is the mapping period (2013-2015) with a home-based casing card, which is a free membership card with exclusive discounts, accumulated divides, credits, and a single storage value, which is based on raw data such as the accumulation of user numbers and needs.

The second is a small test knife period (2016-2022) and a home-wide greeting card with an annual consumption threshold of 100 yuan renminbi, the first home-wide domestic test water “pay-for-money”