E-commerce giant JD.com and US retailer Walmart are expanding their strategic partnership with further integration of their platforms, supply chains and customer resources in China.
They aim to offer shoppers faster and more convenient access to authentic products through multiple channels, and to draw attention to this will launch the JD-Walmart 8.8 omni-channel shopping festival on August 8.
Their collaboration has helped boost the popularity of US products in China over the past 12 months, with shoppers able to buy goods directly from Walmart stores via the JD.com platform.
“Since forming our strategic partnership with JD.com in June last year, we have continued to expand our omnichannel strategy to better serve customers and grow our business in China,” says Walmart China e-commerce and technology senior VP Ben Hassing.
“Our ability to tap into JD.com’s advantages across logistics, big data, technology and customer service gives Walmart a huge advantage in reaching China’s rapidly expanding consumer class.”
JD Fast Moving Consumer Goods president Carol Fung says the companies have “enormous opportunity” to define the future of retail in China as technology pushes the boundaries of what is possible.
The expanded partnership increases the companies’ co-operation in three main areas…
Inventory integration: JD.com and Walmart will deploy a jointly developed supply chain and backend system to integrate inventory management. When an order is placed, JD’s proprietary order management system will analyse data from both companies’ stock systems to determine whether a JD warehouse or Walmart store is nearer the customer, and send a JD courier accordingly. This will improve delivery efficiency, optimise delivery routes for JD and increase Walmart’s inventory turnover rate. Pilot projects will be launched in Beijing, Chengdu, Guangzhou, Shanghai, Shenzhen and Wuhan.
Customer integration: Customers can now scan a QR code at more than 400 Walmart stores in China to earn coupons for use at the Walmart online stores on JD.com during the 8.8 shopping festival. The festival will help Walmart extend its reach to the 99 per cent of the nation’s population covered by JD’s delivery network. August 8 is one of most auspicious dates on the Chinese calendar, and the 8.8 festival will offer savings across the different JD and Walmart channels with rewards for shopping multiple channels.
Store and platform integration: As part of its ongoing omni-channel push, JD.com has set up its first JD Home outlet inside a Walmart store in Shenzhen, selling electronic products. JD is also establishing pick-up stations in Walmart stores to provide more options for digital customers. Since teaming up with JD.com, Walmart has launched five online stores on its platforms enabling Chinese consumers to also buy ASDA and Sam’s Club brands. Also, 134 Walmart stores across 18 cities have joined the JD Daojia platform to offer one-hour deliveries.
During JD’s Anniversary Sale last month, sales of Walmart’s international products were four times higher than during JD’s Single’s Day shopping festival on November 11, and Walmart sales on the JD Daojia platform last month were more than four times higher than in January. Also, the number of fans “following” the Sam’s Club Flagship Store on JD has reached nearly 700,000.