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Walmart China partners with Meituan to expand real-time retail capabilities

By WANG ZHUOQIONG | chinadaily.com.cn | Updated: 2024-12-17 14:21

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A deliveryman for Meituan, the country's on-demand service platform, delivers food in Beijing. [Photo provided to chinadaily.com.cn]

Walmart China and Meituan -- an online service platform -- announced a strategic partnership on Tuesday to enhance real-time retail operations.

The collaboration will focus on improving merchandise diversity, operational efficiency, digital customer engagement, and marketing capabilities.

Walmart stores across China are now fully integrated with Meituan's distribution platform.

Zhu Jun, chief procurement officer of Walmart China, said the company has built an omni-channel retail matrix that combines online and offline services, catering to diverse shopping scenarios and delivery needs.

"We aim to provide consumers with high-quality, diversified retail options through a seamless integration of platforms and channels," Zhu said.

Xiao Kun, vice-president of Meituan, said the company's flash purchase business is designed to deliver "everything home in 30 minutes, anytime, anywhere."

He said the platform has expanded from offering food delivery to meeting broader consumer demands, supported by its extensive merchant ecosystem and product range.

E-commerce now accounts for half of Walmart China's business, reflecting the growing importance of online platforms. "The addition of more distribution platforms provides consumers with greater choice and convenience," said Jason Yu, general manager of CTR Market Research. He said that real-time retail competition is intensifying in China, with platforms such as Meituan, JD.com, and Ele.me offering subsidies to attract market share.

According to the 2023 China Real-time Retail Industry Market Research Report, the sector has maintained an average annual growth rate of over 50 percent. The market size reached 504.3 billion yuan in 2022 and is expected to triple that of 2022 by 2025.

The partnership comes amid Walmart China's strategic realignment. In September, Walmart sold its stake in delivery platform Dada to JD.com, following its exit from JD.com entirely a month earlier, ending their eight-year partnership.

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