According to a recent article by Internet Retailer, the world’s largest retailer, Walmart, is looking to gain a larger share of online sales in the world’s largest eCommerce market. In March, the company that is already in the top ten internet retailers in China, launched Global E-Buy to boost online sales of imported products.
“Cross-border eCommerce service is a good supplement and extension to our stores. Wal-Mart aims to be the most reliable retailer in China, no matter online or offline.” Sean Clarke, President and CEO of Walmart China, said at the launch ceremony.
Global E-Buy is directly aimed to serve the growing demand from China’s middle class for goods from abroad. Studies reveal that more than 60% of Chinese consumers are willing to pay more for American products than those made in China. The Global E-Buy effort is designed to compete directly with Amazon and Chinese commerce giants JD.com and Alibaba. Wal-Mart says its Global E-Buy service will match the prices of its major rivals on the imported goods it offers.
Last May, Walmart introduced their Walmart China mobile app in three of the largest cities in Southern China to purchase products for either in-store pickup or home delivery. Walmart reports that they have experienced a seven-time increase in sales through the app since it was introduced. The company plans to expand the app’s availability based on this success and 30 additional Walmart stores are in the works for China this year. The app has already been downloaded more than 500,000 times.
Global E-Buy runs through the Walmart app and is intended to add a greater presence of products from abroad to the items already available in China’s Walmart stores. Currently, 200 products are available through Global E-Buy and the company expects increase that number to 500 by the end of 2016. American brands like Starbucks, Aveeno and Burt’s Bees are already available, but the majority of products to date are Walmart private label products.