Walmart’s China operations are running into internal resistance as the chain tries to embrace very Web- and mobile-friendly shoppers in China.
“As E-commerce spreads in China, Wal-Mart faces mounting pressure to adjust its business approach as well as update attitudes. So far, though, the company appears more committed to the physical store business than cyber shopping in China,” reports Caixin Online. “Big stores and payrolls are pillars of the old-fashioned retail business model that some experts say are starting to teeter for companies such as Wal-Mart, which has more than 400 outlets in China.”
Wal-Mart sales in China rose 3.6 percent in 2012 and 24.5 percent last year. E-commerce provider JD, meanwhile, saw revenues jump 67.6 percent in 2013 to 69.3 billion yuan.
“To adapt, Wal-Mart is directing more resources toward after-sale deliveries, particularly door-to-door free delivery services for customers within two kilometers of a store. It also plans to team up with product suppliers to sponsor promotions and price items according to what e-commerce retailers offer,” the story noted.