In the past serval years, thousands of international brands and retailer have started to sell to Chinese consumers via e-commerce, aiming to tap into the world largest online shopping market.
A recent example is Asda Stores Limited, a British supermarket chain acquired by Wal-Mart stores Inc. in 1999. Wal-Mart last week launched an Asda-branded store on JD.com, a leading Chinese e-commerce site and Wal-Mart’s strategic ally in China.
“Wal-Mart is delighted to provide JD.com’s 226 million customers access to Asda’s quality British products at competitive prices,” says Ben Hassing, senior vice president of e-commerce at Wal-Mart China. “The progress that we’ve made in our alliance with JD.com in less than a year provides a hint at the tremendous developments that still lie ahead.”
Personal care products and mom and baby brands from the U.S. sell very well on our Walmart Global store.
Founded in 1965, Asda operates more than 600 stores in the U.K. and serves 18 million customers, according to the company. Asda’s JD store operates on JD.com’s cross-border e-commerce section, JD Worldwide, a section of the site designed for retailers and brands that, like Asda, don’t operate stores in China.
Wal-Mart, No. 3 in the newly released Internet Retailer 2017 Top 1000, says products on this store are sourced from the U.K with a focus on high quality and safety. Major categories featured are food, nutrition products and cosmetics, and individual products include biscuits, coffee, tea bags, nuts and energy bars, and baby food. Featured products include Asda’s branded products, such as Asda Extra Special Scottish Shortbread Rounds and Asda Extra Special Colombian Instant Coffee. The store sells about 130 items and Wal-Mart says it plans to expand selection in the future.
Wal-Mart also operates a store on JD at Walmart.jd.hk and plans to bring products from around the world at affordable prices to Chinese consumers, according to the company.
“Wal-Mart’s global flagship store on JD Worldwide now sources products mainly from the United States, Japan and the United Kingdom,” Jane Yan, general manager of China cross-border e-commerce, tells Internet Retailer,
“Personal care products and mom and baby brands from the U.S. sell very well on our Walmart Global store. Also, the sales of general merchandise, such as toys and electronics, have been growing rapidly in recent months.”
Wal-Mart last year took a 5% stake in JD.com, which is China’s largest online retailer in terms of sales by a single merchant and is ranked No. 1 in the Internet Retailer China 500. JD is the major competitor in China to Alibaba Group Holding Ltd., whose big online marketplaces Taobao and Tmall account for a majority of online retail sales in China, but which are not ranked because Alibaba is not the merchant of record for those sales.