Walmart and JD.com Expand Strategic Cooperation
July 25 2017 - 4:00AM
Strategic partners Walmart (NYSE:WMT) and JD.com (Nasdaq:JD) are
expanding their cooperation to further integrate their platforms,
supply chains and customer resources in China. Coinciding with the
launch of the first JD-Walmart 8.8 omni-channel shopping festival
on August 8, the new initiatives aim to offer shoppers throughout
China faster and more convenient access to high-quality authentic
products through multiple channels.
Walmart and JD.com established their pioneering
partnership one year ago, combining the strengths of Walmart and
China’s largest online retailer to generate exciting new ecommerce
and retail initiatives. The collaboration is helping boost the
popularity of U.S.-made products in China and allowing shoppers to
directly buy goods from Walmart stores on the JD.com platform.
“Since forming our strategic partnership with
JD.com in June of 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 eCommerce and Technology. “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. We look forward to further
bringing together our strengths in digital and physical retail to
take the customer experience in China to the next level.”
“As technology pushes the boundaries of what is
possible, JD.com and Walmart’s global supply chain excellence
offers complementary platforms and a commitment to customers that
provides us with an enormous opportunity to define the future of
retail in China,” said Carol Fung, President of JD Fast Moving
Consumer Goods.
The expanded partnership increases their
cooperation in the following areas:
• Inventory integration
Walmart and JD.com will deploy a jointly
developed supply chain and backend system to integrate inventory
management. When a customer places an order on JD.com, JD’s
proprietary order management system will analyze data from both
companies’ stock systems to determine whether a JD warehouse or
Walmart store is closer to the customer, and dispatch a JD courier
accordingly. This will significantly improve delivery efficiency
for customers, optimize delivery routes for JD and increase
Walmart’s inventory turnover rate.
Walmart and JD.com will launch pilot projects
for inventory integration in six cities: Beijing, Shanghai,
Guangzhou, Shenzhen, Chengdu and Wuhan.
• Customer integration
Beginning July 20, customers have been able to
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 on August 8. The festival will help
Walmart extend its reach to the 99% of the country’s population
that JD’s delivery network covers, bringing high-quality Walmart
products to more Chinese customers nationwide.
August 8 is one of most auspicious dates on the
Chinese calendar, which was why the Beijing Olympics opened on that
date in 2008. The 8.8 omni-channel shopping festival will offer
savings offered across all the different JD and Walmart channels
and rewards for shopping multiple channels. The event will feature
a livestream broadcast from Walmart's first U.S. store and an 8.8
Reunion during the day, where multi-channel customers can share
their experiences to earn rewards and the chance to join a special
8.8 Reunion celebration.
• Store and platform integration
As part of its ongoing omni-channel push, JD.com
recently set up its first JD Home store inside a Walmart store in
Shenzhen. JD’s offline store project, JD Home, sells electronic
products complementing Walmart’s product categories.
JD is also establishing JD pick-up stations in
Walmart stores to provide more pick-up options for JD digital
customers.
Since teaming up with JD.com one year ago,
Walmart has launched five online stores on JD platforms. Chinese
consumers can now shop the Walmart, Sam’s Club and ASDA brands from
China to access high-quality authentic goods with timely delivery
and at reasonable prices. In addition, 134 Walmart stores across 18
cities have also joined the JD Daojia platform to offer fast
delivery of orders in one hour.
During JD’s June 18 Anniversary Sale this year,
Walmart’s international products sales on JD.com increased four
times compared to sales during JD’s Single’s Day (November 11)
shopping festival in 2016. By July 2017, the number of fans
“following” the Sam’s Club Flagship Store on JD had reached nearly
700,000. In addition, Walmart’s sales on the JD Daojia platform
increased by more than four times in June 2017 as compared to
January 2017.
About JD.com
JD.com is both the largest e-commerce
company in China, and the largest Chinese retailer, by
revenue. The company strives to offer consumers the best online
shopping experience. Through its user-friendly website, native
mobile apps, and WeChat and Mobile QQ entry points, JD offers
consumers a superior shopping experience. The company has the
largest fulfillment infrastructure of any e-commerce company
in China. As of March 31, 2017, JD.com operated
7 fulfillment centers and 263 warehouses covering 2,672 counties
and districts across China, staffed by its own
employees. JD.com is a member of the NASDAQ100 and a
Fortune Global 500 company.
About Walmart
Wal-Mart Stores, Inc. (NYSE:WMT) helps people
around the world save money and live better - anytime and anywhere
- in retail stores, online, and through their mobile devices. Each
week, over 260 million customers and members visit our 11,723
stores under 59 banners in 28 countries and e-commerce websites in
11 countries. With fiscal year 2017 revenue of $485.9 billion,
Walmart employs approximately 2.3 million associates worldwide.
Walmart continues to be a leader in sustainability, corporate
philanthropy and employment opportunity. Additional information
about Walmart can be found by
visiting http://corporate.walmart.com on Facebook
at http://facebook.com/walmart and on Twitter
at http://twitter.com/walmart.
Contacts:
Walmart: Rebecca Lui rlui@walmart.com
JD.com: Josh Gartner Press@JD.com
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