Wal-Mart Stores, Inc. (NYSE:WMT) is working hard to win customers in the second-largest economy of the world. With Alibaba Group Holding Limited planning for an IPO in the US next month, this might just be the opportunity for Wal-Mart Stores, Inc. (NYSE:WMT) to boost its market share in China.
Wal-Mart Stores, Inc. (NYSE:WMT) is trying to boost its online retailer in China, Yihaodian, by increasing the number of products on its portal, develop better supply chain, and offer better mobile shopping experience to the users. Wal-Mart has 54% stake in the company and has tried desperately to boost its market share.
However, the biggest and toughest problem in front of the largest retailer of the world is its rival in China, Alibaba.com. iResearch Consulting Group, Internet Research Firm based in Beijing, released report stating that Alibaba Group Holding Limited had more than half of the B-to-C market under its control. China has an online market of $46 billion with Yihaodian having a meager 1.4% share in the market.
Wal-Mart Stores, Inc (NYSE:WMT) adapted the e-Commerce approach passively but with sincere efforts, it managed to cross $10 billion in global online sales. It is the fourth largest US-based online retailer after companies such as Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc (NASDAQ:AAPL), and Staples, Inc. (NASDAQ:SPLS). According to Neil Ashe, Head of global e-commerce for Wal-Mart, “We’ve taken a long-term view of China. It’s an awfully big market–it doesn’t have to be number one to be a good business.”
This article has been written by Prakash Pandey and edited by Serkan Unal.