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Sosuke Sugisaka (Chris). Tan Ming Jiang (MJ ). 11340696040 11340696018

Explore Walmart's journey, success in China, understanding the market & consumers, and the need for e-commerce, localization, and quality to thrive. Discover the challenges faced and strategies for growth in the evolving retail landscape.

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Sosuke Sugisaka (Chris). Tan Ming Jiang (MJ ). 11340696040 11340696018

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  1. SosukeSugisaka (Chris). Tan Ming Jiang (MJ). 11340696040 11340696018

  2. Content • What’s the next step for Walmart?

  3. Company overview and main business in the world

  4. Founded in 1962 1972

  5. Regional to National Giant (1980 – 1990) • Most Profitable & Largest Retailer in US by 1989 • Largest Grocery Retailer in US • Generated 51% of US$258B Sales in Grocery Business in US • 2009

  6. 27 Countries • E-commerce in 10 Countries • 2.2M Associates around World • Unsuccessful in Germany, Russia, South Korea 10,900

  7. Walmart business model analysis Osterwalder’s 9 point decomposition of a Business Model (Chesbrough, 2010)

  8. Walmart in China • Supercenter • Sam’s Club 1996

  9. 2002: Opening of Walmart’s global sourcing office • 2007: Purchased 35% of shares from Trust-Mart • 2011: Walmart’s China eCommerce headquarters in Shanghai established • 2012: Completed buying all the shares • 2012: 51% ownership of Yihaodian – fastest growing e-commerce business in china

  10. Contributions to China • 90,841 Associates • 20,000 Supplier Partnerships • 99.9% Chinese Employees

  11. Corporate Social Responsibility Walmart donated over RMB 20M to the Sichuan earthquake-stricken areas (2008) • Walmartheld nearly 400 community activities at 150 stores in over 80 cities across China (2009) • “Earth Month” green campaign launched across China – turning off 1/3 of the lighting in the stores during off-peak hours in line with WWF’s Earth Hour program. (2010 Mar – Apr)

  12. How Walmart understand Chinese market & consumers?

  13. Diverse population Too many players Local protectionism Regulatory restrictions Understanding the Chinese Market Employees – relatively unsatisfied

  14. Reason for shopping Like on-site promotions Impulse Driven Analyzing the Behaviour of Chinese Consumers

  15. Frequent shoppers of small amounts Appreciate freshness for food Brand conscious but not loyal Trend of Chinese Lifestyle

  16. Situation and competitors anaylsis (local and international) 2011年

  17. CONCEPT “Everyday Low Price” “A High and Low pricing”

  18. LOCATION ・Suburban areas ・lower incomes areas ・Urban residential areas ・Higher incomes areas

  19. “Central distribution” SUPPLY CHAIN “Local distribution”

  20. Major problems facing Walmart E-commerce Localization Quality

  21. Bitter competition for Market Share

  22. Not traditional shopping Inconvenient for going on Foot? Too large store

  23. Low quality Too cheap Poor in diversity

  24. What’s the next step for Walmart?

  25. E-commerce Fascination Delivery Point System

  26. Localization＆Quality Enrich diversity Community- based store Focus on the Mid and High class Others

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