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18-Apr-2017

Asda enters China ecommerce market

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Walmart is bringing its British products to China with the launch of an Asda store on JD Worldwide, the cross-border ecommerce platform of JD.com.

Targeting China’s growing middle-class shoppers

In the latest step of Walmart and JD.com's strategic alliance, Walmart's UK subsidary, Asda’s, has launched a store on JD Worldwide. Asda's primary offerings on JD.com are food and health products, including items such as biscuits, coffee, tea bags, nuts, energy bars, and baby food. All products will be sourced from the UK, from various Asda brands. Asda plans to expand the product range significantly in the coming months to take advantage of Chinese consumers growing appetite for imported products.

A popular online model for market entry

Online channels are increasingly seen as a critical part of the strategy of retailers and manufacturers selling in China. China’s growing middle-classes are younger, mobile, social and keen on new products, especially imported products they regard as safer and higher quality than domestic counterparts.

Many foreign retailers are partnering with the leading online marketplaces Alibaba and JD.com instead of establishing their own websites. Just a month ago, German discounter Aldi has opened its flagship store on Albiba's Tmall Global, joining Sainsbury's, Costco and Marks & Spencer, which closed its ten retail stores in China and is focusing solely on ecommerce in the market. This low-risk approach is cheaper, faster and enables the retailers to gain access to the massive customer base of these ecommerce giants.

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