JD Daojia Helps Wal-Mart Deliver 30-Fold Online Sales Growth in One Year
Vinson Cheng
/SOURCE : Yicai
JD Daojia Helps Wal-Mart Deliver 30-Fold Online Sales Growth in One Year

(Yicai Global) Oct. 20 -- The partnership between Wal-Mart Stores Inc. [NYSE:WMT] and JD Daojia, a home delivery e-commerce service from JD.com Inc. [NASDAQ:JD], has yielded impressive results over the past 12 months, with remarkable improvements in sales, cooperation, and delivery efficiency setting a good example for online-offline cooperation in the retail industry. The one-year partnership has led to effective online-offline fusion between the firms, which have successfully integrated user resources through joint marketing campaigns, synergized their offline stores and online operations. 

The US retail giant saw a 30-fold increase in gross merchandise volume at its JD Daojia store in September, compared with record levels seen last October, making Wal-Mart one of the fastest-growing brands on the e-commerce platform, according to statistics jointly released by the pair. The partnership's coverage of stores and cities has also continued to grow, and will encompass 146 stores in 20 Chinese cities by the end of this month.

Wal-Mart's impressive sales growth is attributable to strong support offered by its partner in traffic generation, delivery and customer management operations. JD Daojia's more than 30 million registered users and 240 million active users of the JD.com app provide a stable source of online traffic for Wal-Mart's store. JD Daojia's dedicated shipment sorting facilities, app and efficient delivery operations have proven very effective in minimizing the waiting time for online shoppers. In terms of user management support, the platform offers a full suite of customer management and operation tools, allowing Wal-Mart to push sales and promotion notifications to customers at the click of a mouse. 

Accommodating the needs of customers is at the core of every retail business. Wal-Mart won customers' trust by continuously diversifying the products available at its JD Daojiao store. The store currently offers more than 1,500 products ranging from fresh and dried food to household and personal care products, with dairy, cooking oil, rice and pork ranking as the best sellers. Wal-Mart's own-brand products offer excellent value for money and are therefore very popular among consumers, sales of such items increased 13 times over the first nine months of this year.

Fresh food boasts the highest purchase frequency among all products. It currently makes up about 50 percent of the total number of products on sale at Wal-Mart's JD Daojia store, and the company plans to raise that figure to 60 percent within three years in line with growing demand for groceries.

"Our cooperation with JD Daojia over the past year has enabled us to integrate our respective strengths through effective online-offline fusion. It allows both parties to focus on what they are best at and provide more professional and high-precision services, and ultimately create for customers a truly seamless offline-to-online shopping experience," said Jordan Berke, senior director of Hypermarket E-commerce of Walmart China.

"The partnership with Wal-Mart is an important part of our retail empowerment strategy," said Kuai Jiaqi, or Philip Kuai, chief executive officer at New Dada, which formed when JD Daojia merged with logistics giant Dada. "In the future, we'll continue to improve our efficiency and design more innovative practices, benefiting more people with our high-quality and convenient services. This will also boost business growth."

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Keywords: JD Daojia , Walmart , E-COMMERCE , Retail