How Walmart is Winning in China

‍

Apple, Tesla, and Starbucks are all losing momentum in China.

‍

Meanwhile, Walmart has bucked the trend, posting revenue growth of 17.7% in China for the second quarter despite a sluggish Chinese economy and increased domestic competition.

‍

Walmart’s winning strategy in China includes:

‍

• A strategic partner in JD.com who helped them learn how to operate in the competitive Chinese e-commerce market
• A cash cow in Sam’s Club that is driving growth and revenue as Chinese consumers are falling in love with membership club warehouses
• A robust supply chain with multi-temperature cold chain distribution centers, empowering Walmart to outperform competitors in delivering fast and fresh products

‍

Most importantly, Walmart adapted its business model to cultural differences and committed to sourcing locally. For example, Walmart partners with beloved local restaurants to appeal to Chinese customers and foster a sense of community.

‍

Walmart’s strategy is helping them thrive while others are flopping.