Companies to further integrate platforms, supply chains, and customer resources, and launch the first annual JD-Walmart August 8th shopping festival
BEIJING, July 25, 2017 (GLOBE NEWSWIRE) -- 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:
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.
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 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.
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.
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.