This story was delivered to BI Intelligence "E-Commerce Briefing" subscribers. To learn more and subscribe, please click here. Walmart is up against two heavy hitters, Alibaba and JD.com, in China's e-commerce market. And thus far, it's lagging far behind. The retail giant took complete ownership of China-based e-commerce site Yihaodian last July after it bought all remaining shares from China-based financial services group Ping An. But Walmart has yet to have a significant effect in China just yet, as it accounts for just 1.6% of the country's online market, according to Business of Fashion. Contrast this with Alibaba, which owns 47% of the market, and JD.com, which owns 20%. This gives Walmart plenty of room to improve, especially with regard to the number of warehouses it operates in order to reach more of the Chinese population. Yihaodian operates 250 warehouses in 200 Chinese cities, while Alibaba operates 14,000 in rural China alone. And these Alibaba warehouses also serve as pickup stations for customers. JD.com, meanwhile, has almost 6,000 delivery warehouses and pickup stations. Walmart will focus significantly on its grocery e-commerce business in China to draw in new customers. Approximately 46% of Chinese shoppers buy their groceries online, according to Nielsen, and Walmart clearly wants to tap into this market. Yihaodian currently offers 250,000 products for same-day delivery, and groceries are on that list, so expect the company to heavily build out this inventory. Walmart also launched an app in China last year exclusively for click-and-collect fulfillment. This could be particularly appealing to online grocery shoppers, as they could address any concerns they have about their purchases in person. The company is also focusing on its imported goods business in China. In March, Walmart announced it would expand these goods through Global E-Buy, a cross-border e-commerce service inside the Walmart China app specifically offering foreign-made goods. This service offers approximately 200 products, including some popular U.S.-based brands such as Starbucks, Aveeno, and Burt's Bees. Global E-Buy meets a growing desire among Chinese consumers for foreign goods, particularly from the U.S. More than 60% of Chinese consumers are willing to pay more for products made in the U.S. rather than China, even with concerns about quality and safety. Walmart has a chance to tap into a thriving market, as there's never been a better time to be a consumer. The rise of online and mobile shopping has given consumers more choice, flexibility, and often better service, and retailers are shifting their strategies to keep up. Cooper Smith, senior research analyst at BI Intelligence, Business Insider's premium research service, has compiled a detailed report on new e-commerce strategies that looks at some of the top trends affecting retailers at each stage of the purchase funnel and how they're responding to those shifts. Here are some of the key takeaways: In full, the report: To get your copy of this invaluable guide, choose one of these options: The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of new e-commerce strategies.
Walmart is facing stiff competition in China's e-commerce market from two heavyweights, JD.com and Alibaba who own only 1.6% and 47% of the market, respectively. The US retail giant accounts for 20% of the market, highlighting the difficulty they face in trying to make an impact. However, there is room for improvement, in particular the number of warehouses it uses to reach Chinese consumers that the company needs to increase. As a comparison, JD.com has nearly 6,000 warehouses and pick-up points, with Alibaba running 14,000 warehouses in rural areas only. Walmart plans to focus on its grocery e-commerce business as a way to attract new consumers.