The retail market in China is growing, and Walmart is looking to be a part of this growth in the future. The economy may be slowing down with several companies reporting that they are not seeing the sales that they had seen last year, but this is not stopping many companies who are looking to expand in China. So why are companies like Walmart, looking to expand in China despite slower returns being reported now? This is something that was discussed at the Asia-Pacific Economic Cooperation CEO Summit.
Walmart Growing in China
According to Walmart Asia CEO and President Scott Price, despite the economic slowdown that China is seeing, they believe that the retail market will continue to thrive in the upcoming years. Other areas in the economy may start to slow down. However, products and merchandise are still selling strong. This can be seen with the results of Singles Day in China. Alibaba and other online shopping platforms reported amazing earnings during Singles Day. And Yihoaodian, the online operation for Walmart, has also stated that they saw strong sales, however, have not released the specifics as of yet.
The idea of growing in China for Walmart is related to the online-to-offline (O2O) business sector. They hope to utilize Yihoaodian as a way to reach more consumers and increase their sales in this method.
The future of O2O Sales
O2O market is increasing in demand every day. Several consumers are looking for ways to buy their products online and pick these up in store, as well as other methods of buying through O2O markets. Therefore, most companies believe that the O2O markets are going to see a huge increase in demand for what they have to offer. Thus, Walmart plans to be right there to ensure that they are taking on a huge chunk of the needs of Chinese consumers.
Walmart has seen success throughout several areas of the world. In fact, they are one of the dominating companies in the United States. However, as many companies learn, what works well in one country is not going to work well in another. Walmart has learned this lesson and adapted their approach, so it would not be surprising to see Walmart grow in China in the upcoming years.
Learn more about what foreign companies should know before entering into China here