Wal-Mart hasn't always been a major player in the global market, but now thee retail giant services 28 countries and show no signs of slowing down. Wal-Mart Global is growing tremendously by investing and utilizing e-commerce. The past week showed the direction Wal-Mart is going relative to expanding its' e-retail products in China via its' e-commerce partner Yihaodian.
Internet Retailer has recently reported China online retailer Yihaodian has launched selling fresh fruit in Beijing. Yihaodian began selling online to Shanghai shoppers only five months ago, and now, it has expanded to same-day delivery of fruit of 1,200 order daily. The report also stated the company is seeking to offer the service in Guangzhou and Shenzhen, which are two more large cities that would be profitable.
The retail company has been able to quickly expand its' services largely due to its' partnership with Wal-Mart. Vice President of Yihaodian Guo Dongdong stated, “Since Yihaodian can get the support of the logistics networks of Wal-Mart China, we could enter the fresh food section faster and easier than others”. Wal-Mart operates 390 stores in 150 cities in China, which communicates they are having a high level of success there. The partnership appears to be long-term, and Wal-Global will probably use China as a blueprint for the service in other countries.
Wal-Mart Global's partnership with Yihaodian didn't just recently forge. The companies began working together on the e-commerce front in February 2012. At the time, Wal-Mart Global made a heavy investment into the well-known Chinese e-commerce based company, which sales not only fruit, but also daily consumer items such as groceries, consumer electronics and apparel. Wal-Mart has a 51% stake in Yihaodian. This means Wal-Mart Global is making strong efforts to utilize e-retail to sell its' products.
Yihaodan has gained various advantages by its' Wal-Mart partnership. The company utilizes Wal-Mart warehouses to store the fresh fruit. Wal-Mart also holds import licenses for fresh food, which Chinese consumers prefer them import, especially due to reports of contaminated Chinese food products. Yihaodan has to provide the delivery system of their foods, which does require same-day delivery for its' perishables. Yihaodan has been growing at a double-digit rate since its' joining with Wal-Mart last year.
Wal-Mart Global's success with Yihaodan's fruit and fresh food sales is contingent upon how well the products can be delivered. Same-day delivery courier services such as A-1 Express area viable option for companies that are venturing into expanding their e-retail efforts. Companies like Wal-Mart, eBay, Target, and can use A-1 Express on a a national scale and meet all their same-day delivery needs. Whether fruits or groceries, this New Jersey Courier can create an innovative e-retail courier solution fit for your business strategy.
References: 9.11.13, Internet Retailer, Frank Tong, Wal-Mart’s Chinese e-commerce partner starts selling fresh food