JD and Wal­mart to ex­pand strate­gic links in China

China Daily (Hong Kong) - - BUSINESS - By WANG ZHUOQIONG wangzhuo­qiong@ chi­nadaily.com.cn

Lead­ing e-com­merce re­tailer JD and Wal­mart Inc, one of the world’s big­gest re­tail­ers by rev­enue, an­nounced in Bei­jing on Tues­day they will ex­pand a strate­gic part­ner­ship to fur­ther in­te­grate their plat­forms, sup­ply chains and cus­tomer re­sources in China.

The two groups said in a joint state­ment that they will con­tinue to share re­sources on cus­tomers, stores and in­ven­tory — to ex­pand the in­te­gra­tion of their on­line plat­forms and off­line stores.

The two com­pa­nies es­tab­lished their strate­gic al­liance a year ago.

They said the push aims to com­bine the strengths of Wal­mart and JD to gen­er­ate new e-com­merce and re­tail ini­tia­tives.

The state­ment said the co­op­er­a­tion is help­ing boost the pop­u­lar­ity of US-made prod­ucts in China and al­lowed shop­pers to di­rectly buy goods from Wal­mart stores on the JD.com plat­form.

“Since form­ing our strate­gic part­ner­ship with JD.com in June last year, we have con­tin­ued to ex­pand our omni-chan­nel strat­egy to bet­ter serve cus­tomers and grow our busi­ness in China,” said Ben Has- sing, se­nior vice-pres­i­dent of Wal­mart China e-com­merce and tech­nol­ogy.

“Our abil­ity to tap into JD’s ad­van­tages across lo­gis­tics, big data, tech­nol­ogy and cus­tomer ser­vices, gives Wal­mart a huge ad­van­tage in reaching China’s rapidly ex­pand­ing con­sumer class,” he said.

The com­pa­nies said the lat­est ini­tia­tive — which co­in­cided with the launch of the first JD-Wal­mart 8.8 omni-chan­nel shop­ping fes­ti­val on Aug 8 — aimed to of­fer shop­pers na­tion­ally faster and more con­ve­nient ac­cess through mul­ti­ple chan­nels.

Joint mea­sures in­clude ac­cess­ing stores with on­line plat­forms, shar­ing in­ven­tory in pi­lot ar­eas, and a push for deeper in­te­gra­tion of their sup­ply chain and back­end tech­nol­ogy.

The com­pa­nies said that in terms of cus­tomer in­te­gra­tion, the two sides will try to achieve a con­ver­sion of their on­line and off­line traf­fic, mainly through joint mar­ket­ing.

On­line cus­tomers shop­ping at Wal­mart stores on JD’s plat­forms on Aug 8 will have the chance to win coupons for Wal­mart’s bricks-and-mor­tar stores, to en­cour­age a con­ver­sion of shop­ping traf­fic from off­line to on­line and vice versa.

Wal­mart launched five stores on JD’s plat­forms, in­clud­ing Wal­mart’s flag­ship store, Wal­mart global shop on JD World­wide, Sam’s Club flag­ship store, Sam’s Club flag­ship store on JD World­wide, and ASDA flag­ship store on JD World­wide.

“JD will set up pickup points in Wal­mart stores to give con­sumers more de­liv­ery ad­dress op­tions and pickup so­lu­tions,” said Carol Fung, pres­i­dent of JD Fast Mov­ing Con­sumer Goods.

Our abil­ity to tap into JD’s ad­van­tages across lo­gis­tics, big data, tech­nol­ogy and cus­tomer ser­vices, gives Wal­mart a huge ad­van­tage in reaching China’s rapidly ex­pand­ing con­sumer class.” Ben Hass­ing, se­nior vi­cepres­i­dent of Wal­mart China e-com­merce and tech­nol­ogy

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