Chinese consumers can now purchase US-made products through JD.com’s partnership with Walmart. China’s second biggest e-Commerce company promises to bring significant traffic to the American retail giant. Can this partnership finally knock Amazon from its perch on the top of the online shopping ladder? JD.com International President Winston Cheng believes so. Find out more about the partnership from CNBC below.
Walmart & Chinese E-Commerce Giant To Beat Amazon?
Chinese e-commerce giant JD.com’s partnership with American retail corporation Wal-Martis proving successful — leaving even large competitors like Amazon in its wake — according to JD.com International President Winston Cheng.
“We’re integrating with Wal-Mart in a much tighter partnership, which … potentially, Amazon might do with Whole Foods,” Cheng told CNBC.
“But for us, we’ve already started on this strategy over a year ago with Wal-Mart.”
Click here to read more from CNBC.
The Walmart and JD.com partnership isn’t new. In fact, the two giants in their respective companies started working together in 2016 and have since helped each other improve inventories, customer platform in China, as well as other platforms.
By integrating brick-and-mortar retail to e-Commerce, both companies help each other improve in their own areas. Through JD.com, Walmart can reach more potential customers around the world. China’s highly developed online market can contribute significantly to the retail giant’s revenue.
On the other hand, the Chinese e-Commerce giant can now bring in imported products that were previously unavailable in the country. Indeed, this partnership has been mutually beneficial to both companies.
Walmart Investing In E-Commerce
JD.com isn’t the only venture into e-Commerce for Walmart. Seeking Alpha noted that aside from expanding its reach to other countries, the company still needs to strengthen its e-Commerce strategy locally in order to compete with Amazon.
The Ledger further pointed out that the American company seems to be trying to reach out to trendy and quirky shops with an established following. Walmart already purchased Shoebuy.com, Moosejaw, ModCloth, and Bonobos. Can it lure customers away from Amazon with this strategy?
It seems like Walmart is on the right track with its e-Commerce expansion plan. The company has seen a 63% increase in revenue in the first quarter alone! Check out this video.
Can Walmart beat Amazon in the near future? Or should the retail giant go back to its traditional brick-and-mortar retail system?
Let us know what you think about Walmart’s venture into integrating e-Commerce with physical retail in the comments section below!