Wal-Mart takes control of e-commerce in China

Bentonville, Ark. – Wal-Mart Stores Inc. is taking control of its e-commerce operations in China. The discount giant has acquired the 49% of its Chinese e-commerce arm Yihaodian it did not previously own, taking full ownership of its e-commerce business in China.



Wang Lu, president and CEO of Wal-Mart global e-commerce in Asia, will lead Yihaodian as part of his overall executive responsibilities. Lu’s appointment follows the sudden departure of Yihaodian co-founders Yu Gang and Liu Junling to found a new venture earlier this month. Gung and Jungling, who launched Yihaodian in 2008 and sold a majority stake to Wal-Mart in 2012, will continue to serve as chairman emeritus and strategic executive advisor, respectively, during transition.



With full ownership of Yihaodian, Wal-Mart plans to invest in both accelerating e-commerce and creating a seamless experience for customers across online, mobile and stores. Wal-Mart acquired the remaining shares from Ping An of China, a financial services group, and the co-founders. Yihaodian will continue operating under its existing name and will maintain its focus on having local leadership with a clear understanding of the needs of online consumers in China.



Yihaodian is currently fifth among Chinese e-commerce retailers with a 2% market share. Chinese e-commerce leader Alibaba Holding Group Inc. holds a 44% market share.



“Yihaodian has excelled as one of China’s top e-commerce businesses,” said Neil Ashe, president and CEO of Wal-Mart global e-commerce. “We’re excited about the team at Yihaodian and their strong local e-commerce experience. Our investment in Yihaodian is part of our long-term commitment to grow in China, and we look forward to continuing to play a positive role in the development of the e-commerce industry.”



Yihaodian and Ping An of China will maintain a commercial relationship that includes joint marketing efforts.