Wal-Mart reached an agreement with the Chinese e-commerce retail website Yihaodian.com to increase its stake in the website to nearly 51%.
The transaction is still subject to the approval of related government departments in China.
Founded in July 2008, Yihaodian.com sells over 180,000 kinds of products via the Internet, including food, beverages, daily commodities, baby products, consumer electronics, and apparel. The company currently has 5,400 employees and has established storage and logistics system in Shanghai, Beijing, Guangzhou, Wuhan and Chengdu.
Neil Ashe, president and CEO for Wal-Mart's global e-commerce business, said that the Chinese consumers have closely connected to the world with smartphones and social media and this new investment will enhance Wal-Mart's ability to provide outstanding shopping experience to them. Wal-Mart is establishing the new-generation e-commerce, which will bring unique shopping experience to customers with online innovations.
Ashe said they are optimistic about the powerful leadership and competitive supply chain management system of Yihaodian.com. The additional investment shows Wal-Mart's commitment to investing in the main growing industries in China. They will also develop related sectors, including logistics, infrastructure, innovative talents, and emerging technologies.
Yu Gang, co-founder and chairman of Yihaodian.com, said that Wal-Mart will not only bring its 50 years of global retail experience, but also will offer innovative technologies and e-commerce solutions, which will help Yihaodian.com better meet the demands of consumers. Meanwhile, Wal-Mart's outstanding supply chain management will help Yihaodian.com further improve customer experience and operating efficiency.
Liu Junling, co-founder and CEO of Yihaodian.com, said that apart from capital investment, Wal-Mart will share knowledge, technologies, and retail practice experience with Yihaodian.com. Combining Wal-Mart's advantages with Yihaodian.com's local marketing experience, they are able to offer better quality product portfolio, lower prices, and better shopping experience to customers.