US-based retailer intends to invest in accelerating e-commerce business, while better serving its customers across online, mobile and stores. Wal-Mart didn’t disclose financial terms of the deal. Yihaodian, founded in 2008, sells online products ranging from imported infant formula and fresh vegetables to iPhones.
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Wang Lu, president and CEO of Walmart Global eCommerce in Asia, will lead Yihaodian as part of his overall executive responsibilities. “We’re excited about the team at Yihaodian and their strong local e-commerce experience”, said Neil Ashe, president and CEO of Walmart Global eCommerce, in a statement.
Wal-Mart bought the shares from China’s Ping An Group and Yihaodian co-founders, former Chairman Yu Gang and former Chief Executive Liu Junling.
‘This local experience, combined with Walmart’s global sourcing and our strong local retail presence and supply chain will allow us to deliver low prices on the products customers need in new and exciting ways.’. About 46% of Chinese respondents already buy groceries online, compared with 25% globally, according to consultancy Nielson.
The investment will help Wal-Mart target China’s fast-growing online market at a time when largely brick and mortar retailers are feeling the pinch of competition from online rivals and a slowing of the world’s second-largest economy.
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China’s e-commerce market hasn’t been easy for Walmart to crack, but the U.S. shopping giant isn’t giving up. As of the end of 2013, the business counted 57 million registered users (up from 29 million a year earlier) and .9 billion in annual sales – that latter figure (not profit/loss) ranked it among China’s top five online retail stores.
