Wal-Mart China partners with JD.com

Chinese eCommerce giant JD.com has formed a strategic partnership with Wal-Mart China.

The agreement covers a range of business initiatives, both online and offline. For Wal-Mart, the alliance expands its eCommerce activities and gives its stores and Sam’s Clubs potential traffic from JD.com’s online customer base and same-day delivery network.

JD.com will leverage Yihaodian‘s strong brand and business in eastern and southern China and in key product categories such as high-quality grocery and household goods. JD.com customers will also gain access to new and imported items from Wal-Mart and Sam’s Club.

JD.com will now control the brand, website and app for eCommerce platform Yihaodian, while Wal-Mart will retain the subsidiary’s direct sales business. JD.com CEO Richard Liu says he looks forward to “further developing” the brand.

Sam’s Club China will also have a flagship store on JD.com. It will offer same- and next-day delivery through JD.com’s nationwide warehousing and delivery network, which covers a population of 600 million consumers.

“Sam’s Club’s unique, high-end product selection meets the demand from China’s increasingly affluent consumers for high-quality, imported products,” says Liu.

Wal-Mart president/CEO Doug McMillon says the two companies share similar values. “We also look forward to offering customers a tremendous number of quality imported products not previously widely available in China.”

Wal-Mart’s China stores will be listed as a preferred retailer on JD.com’s O2O JV Dada, China’s largest crowd-sourced delivery platform, allowing customers to order fresh food and other items from Walmart stores for two-hour home delivery.

Walmart will continue to run its own physical stores.
Walmart Stores has 11,527 stores under 63 banners in 28 countries, and eCommerce business in 11 countries.

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.