Tag Archives: WalMart

E-COMMERCE: Alibaba, JD.com Step Up Supermarket Drive

Bottom line: Alibaba could buy the RT-Mart supermarket chain this year to boost its grocery business, while JD.com’s more online-focused effort and push into smaller cities looks like a better approach to the sector.

Alibaba grocer drives into Sun Art, JD goes to small cities

The online supermarket wars that began last year between e-commerce rivals Alibaba (NYSE: BABA) and JD.com (Nasdaq: JD) are heating up in the Year of the Rooster, though the pair seem to be taking slightly different tacks, at least based on the latest headlines. Leading those are reports that Alibaba is in talks for a tie-up of some sort with Sun Art (HKEx: 6808), operator of the popular RT-Mart supermarket chain. Meantime, JD is making its own headlines in the space, with an executive detailing the company’s plans to achieve 100 billion yuan ($14.5 billion) in sales from its operation this year. Read Full Post…

E-COMMERCE: Walmart Steps Up China Grocery Drive with New Investment

Bottom line: Walmart’s investment in an online grocery delivery company is the latest advance in its rapidly growing alliance with JD.com, which could help to reignite its stagnating position in China’s retail market.

Walmart invests in New Dada

The growing alliance between global retailing titan Walmart (NYSE: WMT) and Chinese e-commerce giant JD.com (Nasdaq: JD) is taking yet another step forward, with word that the former is making another new investment in the latter in the hotly contested online grocery space. In this case the investment itself, in a JD-backed online grocery specialist called New Dada, is a relatively modest $50 million. Instead, the investment is more symbolic because it takes direct aim at the market-leading position of e-commerce titan Alibaba (NYSE: BABA). Read Full Post…

China News Digest: October 22-24, 2016

The following press releases and news reports about China companies were carried on October 22-24. To view a full article or story, click on the link next to the headline.
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  • Huawei Keeps Top Spot in China Smartphone Market in Q3 – Trendforce (Chinese article)
  • Walmart (NYSE: WMT) Invests in Logistics and O2O Grocery Platform New Dada (Businesswire)
  • China Telecom (HKEx: 728) Hebei Subsidiary Cancels All Roaming Fees (Chinese article)
  • Yili (Shanghai: 600887) to Raise 9 Bln Yuan, Sunshine Insurance to Hold 4.56 Pct (Chinese article)
  • China Resources Pharma Said to Raise $1.8 Bln From IPO (English article)
  • Latest calendar for Q2 earnings reports (Earnings calendar)

TRAVEL: Ctrip Takes Aim at Airbnb with Tujia Tie-Up

Bottom line: Homestay specialist Tujia could make a play to  merge with the China operations of Airbnb, following its major new tie-up with leading online travel sites Ctrip and Qunar. 

Ctrip ties with Tujia

Leading online travel agent Ctrip (Nasdaq: CTRP) is back to doing what it knows best, neutralizing competition through formation of savvy alliances with its rivals. In this case the company is taking aim at the market for short-term stays at private homes, with its announcement of a major new tie-up with homegrown industry leader Tujia. That alliance is seeing Ctrip merge its own homestay business with Tujia, in what looks like a clear shot at global leader and sector pioneer Airbnb. Read Full Post…

E-COMMERCE: Alibaba, Suning in JV; Wal-Mart Ties Grow with JD.com

Bottom line: Wal-Mart’s deepening alliance with JD.com looks like a smart pairing of leaders in traditional and online retailing, while a new e-commerce joint venture between Alibaba and Suning doesn’t appear to offer anything new.

Wal-Mart opens Sam’s Club on JD.com

Leading Chinese e-commerce operators Alibaba (NYSE: BABA) and JD.com (Nasdaq: JD) are in a series of similar headlines, as each looks for growth opportunities by pairing with traditional brick-and-mortar retailers. Industry leader Alibaba has just announced a rather vague joint venture with leading electronics retailer Suning (Shenzhen: 002024), a year after the pair formed a major equity tie-up. Meantime, JD.com has announced that global retailing giant Wal-Mart (NYSE: WMT) will open 2 major stores on its e-commerce platform, as part of a growing alliance between the pair that also kicked off with a major equity tie-up 3 months ago.   Read Full Post…

China News Digest: October 21, 2016

The following press releases and news reports about China companies were carried on October 21. To view a full article or story, click on the link next to the headline.
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  • China Mobile (HKEx: 941) Announces Financial Results for First 3 Quarters (HKEx announcement)
  • Homestay Business of Ctrip (Nasdaq: CTRP) and Qunar Acquired by Tujia (PRNewswire)
  • China iOS App Store Passes US in Sales to Become World’s Largest – Report (Chinese article)
  • Walmart (NYSE: WMT) Opens Flagship Store on JD.com (Nasdaq: JD) (Chinese article)
  • Giant Interactive to Buy Online Game Maker Playtika for 30.5 Bln Yuan (Chinese article)
  • Latest calendar for Q2 earnings reports (Earnings calendar)

E-COMMERCE: Free of Walmart Restraint, China’s Yihaodian Gets Tough

Bottom line: Yihaodian could regain momentum in China’s online grocery market under an aggressive 1 billion yuan promotion by new owner JD.com and strong support from former owner Walmart.

Yihaodian launches 1 bln yuan promotion

One major obstacle for foreign companies in China is their reluctance to engage in the kind of cut-throat price wars that are all too common in many of the nation’s huge but extremely competitive emerging markets. Such reluctance was a big factor behind the disappointing progress for Walmart’s (NYSE: WMT) local e-commerce venture Yihaodian, and prompted the US retailer to sell the company in June in exchange for shares of local e-commerce powerhouse JD.com (Nasdaq: JD). Now we’re getting word that JD is preparing to position Yihaodian as its flagship online grocery store, and is getting set to launch a massive price war in its bid to achieve that target. Read Full Post…

E-COMMERCE: Alibaba Answers JD’s Grocery Promotion

Bottom line: A blossoming price war between Alibaba and JD.com in the online grocery space could stretch out for the next year, costing each hundreds of millions of dollars on promotions as they battle for market share. 

Alibaba to spend billions on Tmall Supermarket

Just days after e-commerce partners JD.com (Nasdaq: JD) and Walmart (NYSE: WMT) revealed a major promotion for their online grocery business, sector leader Alibaba (NYSE: BABA) is firing back that it will outspend its smaller rivals in the hotly contested space. This sudden price war in online groceries space looks remarkably similar to another battle that broke out nearly a year ago, when Alibaba launched another major promotion against online grocer Yihaodian, Walmart’s main China e-commerce site at the time. Walmart appeared to later concede defeat in that battle just two months ago when it sold Yihaodian in exchange for shares in JD.com, Alibaba’s chief rival. Read Full Post…

China News Digest: July 9-11, 2016

The following press releases and news reports about China companies were carried on July 9-11. To view a full article or story, click on the link next to the headline.
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  • Installment Plan E-tailer Qufenqi Raises 3 Bln Yuan in Pre-IPO Funding (English article)
  • Telefonica Raises $364 Mln from China Unicom (HKEx: 762) Share Sale: Sources (English article)
  • Striking Wal-Mart (NYSE: WMT) Workers in China Return to Work – For Now (English article)
  • China Logistics Said Poised to Price $433 Mln IPO at Top End (English article)
  • Coolpad (HKEx: 2369) Forecasts Sales Slump, HK$2.05 Bln H1 Loss (Chinese article)

E-COMMERCE: Walmart Quits China E-Commerce, Amazon Next?

Bottom line: JD.com will quietly close Yihaodian after acquiring the online store from Walmart, and Amazon is the most likely next large player to withdraw from China’s e-commerce market in the next few years.

JD.com takes over Walmart’s Yihaodian

In what can only be described as a major surrender, Walmart (NYSE: WMT) is selling its struggling online flagship Yihaodian in exchange for about $1.5 billion worth of shares in JD.com (Nasdaq: JD), China’s second largest e-commerce player. The development isn’t a complete surprise, since Yihaodian has struggled to compete with JD and industry titan Alibaba (NYSE: BABA) since Walmart purchased the company 4 years ago. The withdrawal also shines a spotlight on the very real fact that foreign companies often can’t compete on China’s Internet, and raises the question of whether Amazon (Nasdaq: AMZN) might be the next to abandon the complex market. Read Full Post…

RETAIL: Wal-Mart Talks Up China Commitment

Bottom line: Wal-Mart’s discussion of plans to open 115 new China stores and several new local initiatives look like mostly PR to show its commitment to the market, following its announcement of a major global overhaul earlier this month.

Wal-Mart discusses commitment to China

Just a week after announcing a major retrenchment for its global empire, retailing giant Wal-Mart (NYSE: WMT) is saying it will continue to open new stores at a brisk pace in China. The vast and somewhat unique China market also looks set to become a testing ground for new concepts, with Wal-Mart discussing plans to open its first shopping center format and also to expand its cross-border e-commerce business in the country.

The latest developments are discussed in a local media interview with a top Wal-Mart China executive, which is probably timed to quash any potential buzz that the company is planning a similar retrenchment in China to the global plan announced earlier this month. That plan saw Wal-Mart announce it will close 269 stores this year, representing just over 2 percent of its global count of 11,600. Read Full Post…