WALMART Stores Inc., the world s largest retailer, has invested in China s top online seller of consumer electronics and communication products, in a push to extend its reach to more Chinese buyers.
Chinese online business-to-consumer company 360buy Jingdong Mall secured US$500 million in funding from six strategic partners, including Walmart, a 360buy spokeswoman said Friday.
Walmart s investment amount was not disclosed but the company has been eager to tap into the wallets of China s burgeoning middle class, and earlier this year launched in China an e-commerce site for its Sam s Club warehouse stores.
It s a smart move for them, because 360buy, in my opinion, is one of the best B2C online companies in China today, said Michael Clendenin, managing director of RedTechAdvisors, a technology research firm.
360buy chief executive Liu Qiangdong told a press conference Thursday that the funds would be used to build logistics centers in China, local media reported.
China s massive e-commerce market is highly fragmented and competitive, where 360buy battles Taobao, a unit of Alibaba Group and E-Commerce China Dangdang Inc. for dominance. 360buy had 14.1 percent of China s B2C market in the third quarter while Dangdang had 3.7 percent, according to data from Analysys International.
(SD-Agencies)
