The two firms entered into a strategic alliance in June. Since then, Wal-Mart has upped its investment in JD.com to 10.8 percent. The three new initiatives include an exclusive Sam’s Club flagship on JD.com, a Wal-Mart Global Imports Store on JD.com and two-hour delivery from Wal-Mart stores in select cities. All three will be up and running by Nov. 11, Singles’ Day in China.
For Sam’s Club, the flagship will be open on Friday, and will give consumers access to Sam’s Club premium, quality products with JD.com’s same- and next-day delivery service. Wal-Mart will leverage JD’s logistic network and stock Sam’s Club merchandise in JD’s warehouses. The online flagship store complements Wal-Mart’s commitment to open 20 more Sam’s Club locations by 2019. Further, all JD.com shoppers will be able to buy Sam’s Club products at membership prices during a 10-day introduction period.
The two firms will also launch a Wal-Mart Global store on JD Worldwide, JD.com’s cross-border platform. The site will give Chinese consumers access to a variety of products imported by Wal-Mart from around the world. Wal-Mart said it plans to continue expanding and adding new categories of products as they become available. JD’s last-mile logistics network will deliver the merchandise to consumers through its home delivery service.
Consumers for order grocery and fresh goods on JD Daojia, a New Dada joint venture with JD.com that became available today, will provide a two-hour delivery window to consumers from more than 20 Wal-Mart stores. The number of Wal-Mart stores is expected to double by the end of the year. The “exclusive cooperation” is through the merger of Dada and JD Daojia, JD.com’s 020 business unit that was founded in June 2015. The merger in April 2016 formed an independent joint venture called New Dada, China’s larges crowd-sourced logistics platform, JD.com said.
Richard Liu, JD.com chief executive officer, said, “The three areas of cooperation that we are launching exemplify the rapid pace with which our strategic alliance with Wal-Mart is progressing.” Liu said that combining the strengths of Wal-Mart as the world’s largest retailer and JD’s same-day delivery network would provide Chinese consumers the best shopping experience.
Doug McMillon, Wal-Mart’s ceo, said the initiatives are the “culmination of months of hard work and collaboration with the JD team.”
While the initiatives already expand both the number of products to Chinese consumers as well as the number who now have access to the increased offerings, both Wal-Mart and JD said they “will continue to explore additional areas of collaboration to provide superior products at fair prices to hundreds of million of Chinese consumers, with same- and next-day delivery speeds.”