(Yicai Global) April 11 -- US retail warehouse chain Sam’s West Inc., better known as Sam’s Club, has opened an online store on JD.Com Inc.’s home delivery grocery platform, becoming the first member-only service to establish a presence on the Chinese e-commerce giant’s site.
JD now handles deliveries covering more than 1,000 of the Walmart Inc.-owned firm’s products through its Daojia service in Shenzhen in China’s southern Guangdong province following a successful week-long trial, the Beijing-based firm said in a statement.
Premium e-commerce platform JD Daojia provides one-hour delivery of groceries to consumers in first- and second-tier cities such as Shanghai, Beijing, Nanjing and Tianjin.
The two parties aim to build on their cooperation through exploring synergies between Sam’s Club’s upscale brand and JD’s efficient e-commerce and logistics services.
“The partnership between Sam’s Club and JD Daojia has great strategic significance, as it allows both companies to tap into their branding, supply chain and logistics capabilities,” said Chen Zhiyu, vice president of e-commerce, membership and marketing at Sam’s Club China, adding that the cooperation can help establish the firm as a “pacesetter” in the high-end grocery sector.
The launch builds on long-standing cooperation between JD and Walmart, with all of its three brands -- Walmart hypermarket, Walmart Express and Sam’s Club -- now present on the platform. There are also plans to extend Sam’s Club deliveries to other cities in an effort to reach more customers.
Sam’s Club chose products most popular among Chinese e-commerce users for inclusion on its JD shop including fresh and dried food, maternal and baby and personal care products. JD will provide the firm with big data analysis to ensure that Sam’s Club maintains an optimal product mix on its platform, thereby further boosting online sales.
The service proved popular among Shenzhen’s online shoppers during the week-long trial. Sam’s Club’s daily sales in China soared by more than 40 percent on average during the period, compared to when it relied purely on its own local website and mobile app. Average sales per customer during the trial were quadruple those of similar businesses, the statement said, while the average delivery time was only around 40 minutes.
Sam’s Club’s e-store allows non-members to sign up for a free-trial of its service, thereby maximizing its reach among JD’s 20 million active monthly users. The firm aims to leverage the e-commerce firm’s extensive userbase as a key means of acquiring new customers in the country.
Founded in 1983, Sam’s Club is one of the largest membership-only warehouse supermarket chains in the world with over 800 stores and more than 50 million personal and corporate members. The firm operates 19 stores in China and has acquired close to two million members in the country since its market entry in 1996.
JD Daojia offers its services from over 100,000 online stores to its 50 million registered users spanning 30 of China’s major cities. The platform boasts some 20 million active users each month.