#Wal-Mart announced that the company’s #e-commerce store in China, #Yihaodian.com, is now looking for new leaders as Chief Executive, Junling Liu, and Chairman, Gang Yu, have announced they are leaving the company to pursue their next venture in the world. Wal-Mart has stated that they are looking for someone to fill the roles of these two leaders, as they still have hope in turning Yihaodian into a stronger force on the market. Walmart released a statement, saying:
[We] will work to accelerate (Yihaodian’s) growth…and Walmart continues to be committed to investing in China and in e-commerce.
The Plan for Success in China
Wal-Mart, despite being the leading retailer throughout the globe, has not seen as much success as they would have hoped in the Chinese market. In order to help the retail giant get the type of popularity they wish to have in the Chinese market, they are first closing some under-performing stores in China. No word yet as to what stores these are.
In addition, they plan on growing their online grocery market, as this is a huge segment that is taking off in China. They plan to do this with the Yihaodian.com platform. The head of Wal-Mart Asia, Scott Price, stated:
What we’re finding is that the Chinese customer is going online and they’re going online outside of China pretty aggressively.
The Success of Wal-Mart in China
So far, Wal-Mart has not seen the success that they had hoped for. According to a Kantar Worldpanel consumer analytic report, Wal-Mart has seen their sales slip over the last five years, falling to those companies who are local. In fact, the company has been struggling to gain a consumer base due to Alibaba Group Holding Ltd and JD.com, who are dominating the e-commerce market.
Find out how Alibaba and JD.com are stacking up against one another: here.
In addition, Wal-Mart is also finding that they are losing out to Amazon.com Inc, who is performing fairly well for a foreign company in the e-commerce market within China. Through downsizing and refocusing their efforts, Wal-Mart hopes Yihaodian will start performing at the level they believe it is capable of performing.
Learn more about Yihaodian here.