The world’s largest retailer Wal-Mart has bought the remaining stake of Chinese e-commerce company Yihaodian, now taking full control. Both the Chief Executive and Chairman of Yihaodian resigned from the company earlier this month, laying the foundations for the buyout. Yihaodian has excelled as one of China’s top e-commerce businesses. Wal-Mart, in bids to compete with the likes of Amazon, have stepped up their e-commerce efforts; narrowly their US online retail sales surpassed those of Amazon last year. Although Wal-Mart dominates offline retail in the US, it has struggled to translate this success abroad. This deal puts Wal-Mart in direct competition with Alibaba, another Chinese e-commerce group, who predicts that it will overtake the US retail chain in sales this year.
Let’s see how Wal-Mart utilises the team at Yihaodian and their strong local e-commerce experience and combine this with their global sourcing and strong retail presence to not only help develop the e-commerce industry but also their growth in Asia.