Wal-Mart and JD.com partner for a Chinese version of ‘Prime Day’

by Kim Souza (ksouza@talkbusiness.net) 210 views 

Wal-Mart Stores and JD.com have joined forces to launch their own version of Prime Day in their China operations. J.D., Wal-Mart’s strategic partner in Chinese e-commerce, launched its first JD-Walmart 8.8 omnichannel shopping festival slated for Tuesday (Aug. 8) in which prices are lowered and customers are rewarded for making purchases at multiple channels.

“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,” he added.

The event is possible because of a recent inventory integration initiative where a joint supply chain and backend system connects the retailers. Wal-Mart said when a customer places an order on JD.com, JD’s proprietary order management system will analyze the data from both company’s stock systems to determine whether a JD warehouse or Wal-Mart store is closer to the customer. A JD courier is then dispatched to retrieve the order and deliver it. Wal-Mart benefits from having access to approximately 99% of the Chinese population.

Hassing said Wal-Mart is committed to the JD.com partnership saying it will help boost sales and capture market share.

“As technology pushes the boundaries of what is possible, JD.com and Wal-Mart’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 U.S retailer said this will improve delivery efficiency for customers, optimize delivery routes for JD and increase Walmart China’s inventory turnover rate. The six cities where the inventory integration is being tested are Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu and Wuhan.

Over the past two weeks customers have been able to scan a QR code at more than 400 Wal-Mart stores in China to earn coupons for use at the Wal-Mart’s online stores on JD.com during the “8.8” shopping festival. The festival will help Wal-Mart extend its reach to the 99% of the country’s population that JD’s delivery network covers, bringing high-quality Wal-Mart products to more Chinese customers nationwide.

As part of its ongoing omnichannel push, JD.com recently set up its first JD Home store inside a Wal-Mart store in Shenzhen. JD Home sells electronic products complementing Wal-Mart’s product categories. JD is also establishing JD pick-up stations in Wal-Mart’s stores to provide more pick-up options for JD digital customers.

Since teaming up with JD.com one year ago, Wal-Mart has launched five online stores on JD platforms. Chinese consumers can now shop the Walmart China, Sam’s Club and ASDA brands from China to access authentic goods with timely delivery and at prices the retailer considers reasonable. In addition, 134 Walmart China stores across 18 cities have also joined the JD Daojia platform to offer fast delivery of orders in one hour.

Wal-Mart said the partnership with JD.com is giving it more access to Chinese consumers. Wal-Mart owns a 12% stake in JD.com. During JD.com’s June 18 Anniversary Sale this year, Wal-Mart’s international products sales of JD.com increased four times that of the sales during JD’s Single’s Day in November of last year. As of July, the number of fans “following” Sam’s Club Flagship store on JD.com had reached nearly 700,000. Wal-Mart said its sales on the JD Daojia grocery platform increased by more than four times in June compared with a year ago.