Walmart chalks up $1.89B sales in China

Walmart chalks up $1.89B sales in China

Summary: Online retailer's Chinese subsidiary, Yihaodian.com, doubles its stock keeping units (SKU) to 3.4 million and now has a registered user base of 57 million.

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TOPICS: E-Commerce, China
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Walmart's Chinese subsidiary chalked up sales of 11.54 billion yuan (US$1.89 billion) in 2013, doubling its stock keeping unit (SKU) to 3.4 million over the previous year. 

Walmart China
Yihaodian.com currently has 57 million registered users.

Yihaodian.com also saw its registered user base climb to 57 million from 29 million in 2012, its chairman Yu Gang, told local reporters at briefing last week. The company saw stellar results in its imported food business, with its sales of imported milk accounting for 37.2 percent of China's total imported goods from January to November 2013. 

Walmart owns a 51 percent stake in Yihaodian.com following a 2012 deal to increase its investment in the Chinese e-commerce site. The U.S. online retailer in 2011 set up its China headquarters in Shanghai and employs over 90,000 in the country, where it operates various store chains including Smart Choice, Trust-Mart, and Sam's Club. 

Yihaodian.com runs operating centers in Quanzhou and Jinan, located in the Fujian and Shandong province, respectively, as well as a warehouse in Hongmei, Guangdong province. 

Yu said the company's 2014 gameplan will focus on five key areas including expanding its product categories and mobile business, as well as deploying big data tools.  

During his visit to Beijing in October 2013, Walmart President and CEO Mike Duke said the company was looking to open 110 new facilities in China over the next three years through to 2016, expanding into Tier-2, -3, and -4 cities. The company opened new distribution centers in Wuhan and Shenyang late-2013, with plans to open more this year. Duke said then: "China is a key strategic market for Walmart and we are very well positioned to serve the country's emerging middle-class with great products they can trust. Our management team is committed to continued growth in large and smaller cities across China... Our investments in new stores, innovation, and retail supply chain will create jobs and support China's plans for growth."

 Walmart's China sales, however, are far from the country's market leaders Taobao and Tmall, which clocked over 30 billion yuan (US$4.9 billion) on a single day during the Cyber Monday shopping festival on November 11, 2013. Both sites are operated by Chinese internet giant, Alibaba Group. 

Competition in China's e-commerce market is heating up with players including Tencent Holdings, which just last week invested US$193.45 million into logistics company China South City Holdings, as they look to grab a share of the country's budgeoning online retail industry.

Topics: E-Commerce, China

About

Eileen Yu began covering the IT industry when Asynchronous Transfer Mode was still hip and e-commerce was the new buzzword. Currently a freelance blogger and content specialist based in Singapore, she has over 16 years of industry experience with various publications including ZDNet, IDG, and Singapore Press Holdings.

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  • Hope It Is The Same Walmart

    I hope that Walmart treats them the same as we are treated here in the states. Have a Well Fargo truck show up, take the money and leave town.

    The money that is generated at our local Walmart does not even go through our local banks. It is extracted from our local community.

    I hope that nothing changes here. Extract it and have it deposited into a US Bank.

    Why not...
    dsscomp