WAL-MART + Jingdong: Integration Brings New Retail Ecology

A long time ago, there were many rumors.

The issue of ownership finally settled.

About 5% of Jingdong's stake.

It owns the main assets of mall 1, including the brand, website and APP of "shop No. 1".

According to the Jingdong market value of the day of agreement, 5% is about 1 billion 440 million dollars, or about 9 billion 500 million yuan.

In addition, the two sides also involve other business areas, covering the online and offline retail market.

Fusion brings new retail ecology

One is China's largest self operated electricity supplier, one is the veteran leader of global retail industry. Jingdong and WAL-MART regard this "marriage" as "strong alliance" in the retail and electricity business field, and complement each other "the most ideal partner".

With the completion of several major giants, the online supermarket war will be more intense.

"In the environment of gradually saturated market, e-commerce enterprises should also try to expand the market, and some advantages of traditional retail industry, such as rich commodity category and good shopping experience, can make up for the shortage of e-commerce enterprises."

Mo Daiqing, director of online retail department of China Electronic Commerce Research Center, said.

According to WAL-MART China responsible person, the cooperation between the two sides also includes the following three aspects: first, the Sam member store will open an official flagship store on the Jingdong platform, and the Sam member store will use Jingdong's warehousing and distribution integrated logistics services to expand its imports in a wider range in China; second, Jingdong and WAL-MART will cooperate at the supply chain side to provide more abundant product choices, including expanding the richness of the imported products; third, WAL-MART's physical stores in China will invest in the mass investment logistics platform "dada" and O2O e-commerce platform "home" and become its key partners.

From the point of view of complementary advantages, this is a win-win cooperation.

For WAL-MART, Jingdong's massive online users and powerful logistics network will bring huge traffic to WAL-MART stores and Sam's member stores, greatly expand its growth opportunities in the Chinese electricity market; for Jingdong, it can integrate the 1 store business to enhance the category advantages in grocery and home products, and also to promote WAL-MART and Sam member stores to enhance their overall competitiveness.

However, if the actions of competitors are taken into account, the alliance between two companies is actually forced to come out of helplessness.

Online and offline there are difficulties in holding together.

In fact, following the announcement of a comprehensive strategic cooperation between Alibaba and Suning in August last year, Suning officially introduced Taobao as the second largest shareholder in early June through the form of private placement.

At this point, the Alibaba + Suning front alliance was formally established.

In the past few years, Tmall supermarket has eaten up the large market share of No. 1 store in East China. In September last year, Alibaba launched the "Hangzhou + Beijing" dual headquarters strategy, which made Tmall supermarket sit on the northbound train -- set up the North District Office in Beijing, focusing on the North China market, referring directly to the hinterland of Jingdong.

Now tied up with a Suning, the two strong combination of online Jingdong and offline WAL-MART, are a big worry.

From this perspective, Jingdong's joint efforts with WAL-MART can be regarded as an instinctive counterattack.

Last Friday, the first shot of the counterattack had begun.

It was observed that the number 1 shop in Jingdong's income pocket has quietly set off all its products in Tmall flagship store.

There will be no accident. The camp will soon show new tricks.

"As a whole, the market pattern of online supermarket has been fixed. Only the strong combination is the way out.

But the key to success is not the big platform, but how the two sides integrate business. This is not the game of 1+1=2, but to achieve the effect of 1+1>2.

People in the industry say that the company has become the norm, but at the same time, it emphasizes that the action of strong combination does not mean the effect of strong combination. "Unless the joint enterprises find their advantages and make 100% use of them, they can only be thunderstorms and heavy rain."

From this point of view, joining hands is just the beginning, and the bitter struggle is still ahead.

In fact, the days of online supermarkets are not as good as imagined.

Taking the experience of shop No. 1 in recent years as an example, from Ping An to WAL-MART to Jingdong, it has been said by several times that even though Shop No. 1 always brings hope to all the big guys, but once the reality is always unable to integrate and slow to make money, let big bosses lose patience with them again and again.

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The so-called bottleneck is not only the 1 store, but also Suning and Tmall.

Such as Suning supermarket, which is known as the "second chain" business of Suning, has been digging out the 16 million years of the 16 year operation of Carrefour, a Chinese originator store. It once ran to the WAL-MART store and shouted, "the sales revenue has increased by more than 900% in one year, the profit and loss balance has been achieved in three years, and it has overtaken 1 shops and opened 500 stores in the first tier cities in five years".

Even today's Tmall supermarket, which has the best momentum of development and claims to become China's largest supermarket (whether online or offline) after 2018, has lost about 1 billion yuan in 2015.

"Online supermarkets have congenital bottlenecks and difficulties."

This is a common perception in the industry.

At present, most online supermarkets mainly include fast food and fresh products, many categories, miscellaneous products, heavy orders and low unit price.

The degree of standardization is low to the extent that it may not be suitable for the existing electricity supplier practice; the customer price is low or even insufficient to cover the operation cost.

These "injuries" mean that the profit of online supermarket business is still far from being expected.

And this uncertain and uncertain time will obviously leave more room for imagination and stimulate more possibilities.

The online supermarket is more and more difficult to clean.