Wal-Mart Stores has revealed that it is increasing its investment in the holding company of Yihaodian, a growing eCommerce website in China.
The deal will take Wal-Mart’s total ownership stake in Yihaodian to about 51%, as Wal-Mart seeks new sources of revenue to take on rising competition in the world’s fastest-growing major economy, according to Reuters.
Wal-Mart Global eCommerce president and CEO Neil Ashe said their further investment in Yihaodian demonstrates that Wal-Mart is committed to investing in China in a key growth industry and developing all that goes with it: logistics, infrastructure, innovative talent and new technologies.
Yihaodian, launched in July 2008, offers more than 180,000 products and has achieved a significant standing in online grocery sales and in categories such as baby/mom, consumer electronics and apparel, the company said.
With 5,400 employees and its logistics centres in Shanghai, Beijing, Guangzhou, Wuhan, and Chengdu, along with delivery stations in 34 cities across China, Yihaodian is said to be serving a growing customer base with same-day and next-day delivery of essential daily items at competitive prices.
Wal-Mart has not disclosed any financial details of the deal and its existing stake in the Chinese firm.
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