New Dada has a joint venture with JD.com, in which Wal-Mart has a stake. Wal-Mart has realized that in order to survive and thrive in the Chinese market, local partners are key.
In order to tap the world’s second largest economy, Wal-Mart Stores Inc. has disclosed it will be investing $50 million in New Dada, a Chinese online grocery store and delivery company.
The investment will help it get a foothold in the local Chinese market.
Earlier this year, Wal-Mart had shifted its China strategy when it sold its own online platform, Yihaodian, and instead exchanged it for a stake in JD.com. Incidentally, New Dada, is also partly owned by JD.com.
This investment is likely to help Wal-Mart target Chinese shoppers with its faster delivery times in the fiercely competitive online grocery market.
New Dada has more than 25 million registered customers and delivers across 300 Chinese cities.