CHINA: Walmart In Major New Tie-Up With JD.com

Walmart has entered into a strategic alliance with JD.com, China’s largest e-commerce company by revenue, in a move that will see the US giant sell its Yihaodian business for a stake in the latter.

The deal will see JD.com take ownership of Yihaodian’s marketplace platform assets, including the Yihaodian brand, website and app. In return, Walmart will pick up a 5% stake in JD.com.

Walmart said it will continue to operate the Yihaodian direct sales business and will also be a seller on Yihaodian, while working with JD.com to grow the Yihaodian brand and business.

The US giant will also open a flagship Sam’s Club store on JD.com, offering same-day and next-day delivery.  All of Walmart’s China stores will also become preferred retailers on JD.com’s O2O JV Dada delivery platform (the largest crowd-sourced platform in China).

Finally, the two groups said they will work together to leverage their supply chains to increase the product offer for Chinese customers, including broadening the range of imported products.

The move offers Walmart significant potential to expand rapidly in the Chinese e-commerce market, helped by JD.com’s vast customer base.  The Chinese group, meanwhile, significantly strengthens its own marketplace platform business in its fight against Alibaba’s Tmall.

NAM Implications:
  • This is really about stake building…
  • Time for suppliers to anticipate the obvious and line up proposals
  • …while others wait & see…
Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+Email this to someonePrint this page