No. 1 Shop Failed, Quick Purchase Again

The failure of shop No. 1 made WAL-MART miss the first mover advantage in the retail business. In May 2015, WAL-MART launched its own O2O platform brand "quick purchase", trying to fight the electricity supplier battlefield. But what WAL-MART is facing in China today is a stronger and more aggressive online rival than any other country in the world.

In any case, China is a top priority for WAL-MART. In 2014, WAL-MART's 27 top 11457 stores in the world, the top 4 in the list of single store sales, all came from China. Among them, Shenzhen Jing Tian Sam member's annual sales revenue has been crowning the world for 7 consecutive years.

"We have made great achievements in China and there is still much room for improvement in the future." China is still the fastest growing retail market in the world. This is why Dong Minglun visited China 3 times in the past 15 months.

In the latest visit, Dong Minglun personally delivered door-to-door service to customers in Shanghai, China. A month later, the quick purchase was tested in Shenzhen.

President and chief executive officer, WAL-MART International David Chiwhit (David Cheesewright) told Caixin reporters in June 5th that the WAL-MART international market will focus on 3 countries in the future: Mexico, Brazil and China in the first place.

"The development of e-commerce in China is unique, and the market thinking of WAL-MART in China is also different." David Chiwhit said. The development of e-commerce market in China is changing rapidly, and the competition in the industry is fierce.

WAL-MART imagines the Chinese business customers as a professional woman with family and children. "We take such a woman as the object of thinking, what kind of goods she will like, and what kind of display method she sells." she has high requirements for "commodity quality, price, service and so on". Her concern for food safety is higher than that of other countries.

According to WAL-MART's survey, the best selling items in China's online orders are British Asda imported milk, WAL-MART's own brand Hui Yi 10 kilograms of rice and Fuling gate vegetable oil. Based on this demand, WAL-MART has increased the direct supply of imported food and the category structure of its own brand.

However, there are 7 million kinds of online products in WAL-MART America. Relatively speaking, there are few kinds of WAL-MART online products in China. The products launched by Sam online shopping mall and fast shopping platform are less than 20 thousand categories. How can such a small number satisfy the consumer demand of Chinese customers and how to deal with Tmall? JD.COM Competition?

David Chiwhitetan Chen and WAL-MART have a limited number of Chinese online products, but shop No. 1 is still a supplementary channel.

According to David Chiwhit, in order to better promote WAL-MART's competition in the Chinese market, WAL-MART headquarters has gradually increased investment and construction in the Chinese market in the past 3 years. Besides food safety and compliance, WAL-MART has also invested in 11 fresh distribution centers such as Shenzhen, Guangzhou, Shanghai and Hangzhou, covering all the stores in China. There are 9 dry goods distribution centers. Up to now, over 80% of dry goods and more than 50% of fresh food in WAL-MART's 410 stores have been delivered through logistics distribution centers.

Over the past two years, WAL-MART has cut more than half of its suppliers, and has adjusted the procurement system to compress 28 procurement offices in China to 8. At the same time, we should improve the self built logistics network and implement the strategy of "unified procurement and unified distribution". In David Chiwhit's words, let the remaining suppliers "attach importance to WAL-MART, and regard WAL-MART as their most important customer", so as to achieve the goal of reducing costs.

David Chiwhit believes that the layout of the store is small and the cost of logistics is high, which has become the main constraint factor in the implementation of e-commerce in the traditional retail industry. along with logistics The layout of the distribution center system will provide a key support for WAL-MART's China online business development.

In the future, WAL-MART headquarters will also keep the Maggle Sans, vice president of the international affairs department, in Beijing to support the docking of the Chinese team and the US headquarters.

According to the latest plan, WAL-MART China will open 115 new stores in the next 3 years, including 6-7 Sam member stores, which is almost half the number of shops opened in China in the past 19 years. "The Chinese market can still develop better," Dong Minglun said.