Retail in Asia

In Shops

Wal-Mart opens JD.com store, joining China’s online shopping frenzy

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Wal-Mart has opened a store on JD.com’s online shopping platform to deliver imported goods to mainland China’s consumers, three weeks before Alibaba Group kicks off the largest 24-hour online shopping extravaganza on the planet.

JD Worldwide’s new Wal-Mart storefront, launched Thursday in Beijing, promises two-hour delivery to shoppers who live within miles of 20 Wal-Mart stores around China, with the number of outlets expected to double by the end of 2016, according to a JD.com announcement.

Sam’s Club, the wholesale division of Wal-Mart, also opened a flagship store on JD.com, promising same-day and next-day delivery services.

SEE ALSO: Wal-Mart increases investment in JD.com

Wal-Mart bought 5.9 per cent of JD.com in June, agreeing to ally itself with China’s second-largest e-commerce operator to reshape its retail business in the country to catch up with the increasing trend of consumers doing most of their shopping online. Under a pilot project, JD.com said it would explore the feasibility of delivering products using drones for customers in remote areas.

The US retailer raised its stakes in JD.com to 10.8 per cent this month.

Alibaba will host its Singles’ Day on November 11, a 24-hour shopping festival that’s expected to surpass last year’s tally of US$14.3 billion in transactions.

In allying with Wal-Mart, JD.com has set its sights on competing with Single’s Day. Competition and promotions are heating up leading up to November 11, as the annual growth in China’s retail sales tapers.

“Singles Day has become a big event for every consumer in China,” said Analysys International’s analyst Yang Yaqiong. “Not only online retail platforms, even if they are offline brick-and-mortar stores, they have to participate in this shopping spree to boost sales.”

“For large e-commerce platforms, offering simply discounted products may not be enough, they have to provide more high-quality products and better services to attract consumers,” she added.