“We bring, clearly, the online traffic to Wal-Mart,” said Cheng. Furthermore, Wal-Mart is “offering space in their stores for our inventory … so we have expanded our fulfillment capabilities as a result of that as well,” he said, adding that the company also looks forward to selling “a tremendous number of quality imported products not previously widely available in China through Walmart and Sam’s Club.”
According to Cheng, JD.com’s success in reaching consumers can be attributed in part to China’s highly-developed e-commerce market.
Wal-Mart is not JD.com’s only big-name collaborator. China tech firm Tencent also formed a deal with the e-commerce giant at the end of 2014, giving JD.com a headline slot on Tencent’s highly-popular WeChat mobile app.
“With the Tencent partnership, we bring a lot of the mobile traffic also to our customers,” Cheng said. “And with the Wal-Mart partnership, it’s a fully-integrated online traffic to online e-commerce to offline retail strategy,” he added.
By leveraging its online customers, and integrating the offline inventory management for both companies, JD.com is able to deliver items much faster to consumers, Cheng said, adding that the delivery time is now “about 30 minutes.”
Amazon is currently expanding Prime Now, its one- and two-hour express delivery service that is currently available in over 30 U.S. cities. The American tech giant launched Prime Now in Singapore at the end of July in its first foray into the Southeast Asian market.