BUSINESS NEWS: WALMART ACQUIRES THE REMAINDER OF YIHAODIAN
U.S retail giant, Walmart, has acquired the remaining 49% of Chinese e-commerce group, Yihaodian. After years of fighting into online retail and competing with notable names like Alibaba, Walmart has its foot in the door with its recent rise of 12% in its internet sales numbers. Already containing 51% stake in Yihaodian prior to its Thursday buy, Walmart has struggled with foreign markets while Jack Ma, Alibaba’s chairman, predicts that Alibaba will overtake U.S. retail chains.
Walmart already brings in $482 billion in offline sales but its online sales have dwindled in $12 billion: a comparatively large difference. The brick-and-mortar approach to shopping will always contain its pleasure of touching products before buying but the modern shopper peruses the web to find the cheapest deal before swiping their cards. In response to that Walmart has focused on online marketing.
The Yihaodian acquisition comes shortly after the Chinese Ministry of Industry and Information Technology announces that last month that it would allow full foreign ownership of data and transaction processing online businesses, which includes some e-commerce.