This article discusses Walmart’s partnership with Chinese e-commerce side JD.com. There is fierce competition with the widely known e-commerce company Alibaba, which is pretty much the most powerful e-commerce site in China, and other countries. Walmart is doing this to expand its e-commerce presence in China, which it began with purchasing Yihaodian, which is a grocery-focused company based in Shanghai. It is important that Walmart is teaming up with one of Alibaba’s competitors in the market because now there is the potential for some real competition in the e-commerce market. Walmart is such a retail and logistics giant in the United States, and is definitely growing rapidly abroad as well. The choice of partnering with sites focused on groceries is smart for Walmart because that is such a necessary and fairly stable market in any country. According to this article, “Walmart also said it was launching two-hour delivery service in some Chinese cities, taking advantage of JD.com’s strong logistics network that is capable of reaching 90% of Chinese customers.” With such a strong network as a base, it will be easy for an extremely lucrative company like Walmart to succeed in this market. Furthermore, the two companies can partner to increase that already extremely high 90%.
- Source: http://www.forbes.com/sites/dougyoung/2016/10/24/walmart-steps-up-china-grocery-drive-with-new-investment/#202bfec310d8