Walmart amps up online strategy in China with three new initiatives

Walmart is ready to sink its teeth into the world’s largest e-commerce market.



Three months after entering into a strategic alliance with JD.com, China’s second-largest e-commerce website after Alibaba, Walmart announced three new initiatives to rev up its business, plus it will invest $50 million in New Dada — China’s largest local on-demand logistics and grocery online-to-offline (O2O) e-commerce platform.



The initiatives include the opening of a Sam's Club flagship on JD.com that will offer same- and next-day delivery service. Walmart said it will leverage JD.com’s nationwide logistics network and stock Sam’s Club merchandise in JD’s warehouses, which will enable the chain to reach a vast untapped market, and enhance its commitment to open 20 more Sam’s Clubs locations by 2019.



All JD.com users will be able to buy Sam’s Club products at membership prices during a 10-day introduction period following the official launch.



In another initiative, 20 Walmart stores in China will offer two-hour delivery for items it fulfills for JD Daojia, a grocery and fresh foods business JD.com operates with New Dada. The number of participating stores is expected to double by the end of the year.



The team also introduced the Walmart Global JD Worldwide, the company’s cross-border platform. The new destination features a wide variety of merchandise imported by Walmart from around the world. JD’s “last-mile” logistics network will fulfill all home deliveries.



“The three areas that we are launching exemplify the rapid pace with which our strategic alliance with Walmart is progressing,” said JD.com CEO Richard Liu.



The initiatives also illustrate “the culmination of months of hard work and collaboration with the JD team,” added Walmart CEO Doug McMillon. “Our new services will leverage our combined strengths to give Chinese consumers access to quality products from around the world.”



And the collaboration between the two companies is far from done. Walmart and JD will continue to explore additional concepts to provide merchandise — at fair prices — to hundreds of millions of Chinese consumers, with same- and next-day delivery speeds, the statement said.