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Walmart takes on China’s delivery market

Walmart takes on China’s delivery market


The rapid rise of delivery services in China is pushing Walmart to new innovations in Asia’s largest economy.

E-commerce accounts for more than 20 per cent of retail sales in China, the highest and fastest growing penetration rate in the world, according to Mary Meeker’s widely-followed 2018 internet trends report.

With that challenge in mind, the Arkansas-based company is trying an experiment by setting up a smaller store focused on Chinese lower-tier cities and investing in a new sales model with Chinese logistics company Dada-JD Daojia. It is the latest move in Walmart’s two-year partnership with the company. Packing time has been significantly cut down — potentially to just a few minutes — due to the compact layout and integration with a customised warehouse management system from Dada-JD Daojia, according to Yang Bo, national head overseeing major customer partnerships, at Dada-JD Daojia.