Wal-Mart Stores Inc (NYSE:WMT) has outlined that its partnership with JD.Com Inc (ADR) (NASDAQ:JD) has been quite beneficial. This has been in regards to helping Walmart benefit its customers. The two companies have benefited together according to top executives.
Walmart will be able to reach China’s online customers more easily now. The opening up of the global store on JD.com as well as a Sam’s Club Flagship Store will help boost the process. Walmart has over a long period of time targeted investing and sharing in the global e-commerce market.
The online presence on JD.com will help Walmart sell its wide range of products to Chinese consumers living in rural areas. These are sections where Walmart hasn’t yet put in place physical stores.
The establishment of a Walmart Global store on JD.com and the Sam’s Club store will be introducing a wide array of overseas products to the wider Chinese market. Analysts say that the growth potential is fundamentally being driven by the expanding Chinese middle class considering their increasing appetite for the various foreign products.
The agreement between the providers covers diverse business initiatives, covering both offline and online retail. For Walmart, this particular alliance in a major way expands its taking over the China e-commerce. JD.com will be leveraging Yihaodian’s strong business and brand in southern and eastern China and this will be in key product categories. Customers are at the moment hoping to gain direct access to the new and imported items from Sam’s Club and Walmart.
According to the agreement, Walmart was set to receive about 144,952,250 newly issued JD.com Class A ordinary shares. This represents about 5 percent of total shares outstanding and most probably the providers will be seeking to partner in a number of strategic areas. Reports indicate that a lot of customers are satisfied with the turn of events and approve of the recent moves made.