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JD and Walmart to expand strategic links in China

By Wang Zhuoqiong | China Daily | Updated: 2017-07-26 07:36

Leading e-commerce retailer JD and Walmart Inc, one of the world's biggest retailers by revenue, announced in Beijing on Tuesday they will expand a strategic partnership to further integrate their platforms, supply chains and customer resources in China.

The two groups said in a joint statement that they will continue to share resources on customers, stores and inventory-to expand the integration of their online platforms and offline stores.

The two companies established their strategic alliance a year ago.

They said the push aims to combine the strengths of Walmart and JD to generate new e-commerce and retail initiatives.

The statement said the cooperation is helping boost the popularity of US-made products in China and allowed shoppers to directly buy goods from Walmart stores on the JD.com platform.

"Since forming our strategic partnership with JD.com in June last year, we have continued to expand our omni-channel strategy to better serve customers and grow our business in China," said Ben Hassing, senior vice-president of Walmart China e-commerce and technology.

"Our ability to tap into JD's advantages across logistics, big data, technology and customer services, gives Walmart a huge advantage in reaching China's rapidly expanding consumer class," he said.

The companies said the latest initiative-which coincided with the launch of the first JD-Walmart 8.8 omni-channel shopping festival on Aug 8-aimed to offer shoppers nationally faster and more convenient access through multiple channels.

Joint measures include accessing stores with online platforms, sharing inventory in pilot areas, and a push for deeper integration of their supply chain and backend technology.

The companies said that in terms of customer integration, the two sides will try to achieve a conversion of their online and offline traffic, mainly through joint marketing.

Online customers shopping at Walmart stores on JD's platforms on Aug 8 will have the chance to win coupons for Walmart's bricks-and-mortar stores, to encourage a conversion of shopping traffic from offline to online and vice versa.

Walmart launched five stores on JD's platforms, including Walmart's flagship store, Walmart global shop on JD Worldwide, Sam's Club flagship store, Sam's Club flagship store on JD Worldwide, and ASDA flagship store on JD Worldwide.

"JD will set up pickup points in Walmart stores to give consumers more delivery address options and pickup solutions," said Carol Fung, president of JD Fast Moving Consumer Goods.

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