WAL-MART 1 Shop Cooperation Rumored To Change Hands

In the sale of WAL-MART's own brand, shop No. 1 is expected to appear another "WAL-MART" element. According to the Beijing Business Daily reporter, WAL-MART's financial support for the "mother's business cycle" project products in the future is likely to appear in shop No. 1. This is also seen as WAL-MART's initiative, through product cooperation, breaking the repeated rumors that shop No. 1 was sold by WAL-MART.

WAL-MART said that in the past 2014-2016 years, it plans to invest 3 million yuan, 3 million 300 thousand yuan and 3 million 700 thousand yuan to support the project of "mother's business cycle". Bo Rui, senior vice president of WAL-MART China business, said he hoped to bring the products produced by the above projects to WAL-MART supply chain, or to try to open a female commodity channel in shop No. 1.

"If the product can reach the procurement standard of WAL-MART, it can enter WAL-MART's procurement system supply chain. We have considered docking sales, but at present it is only an idea. Perhaps Shop No. 1 will also try to do this in the future. Mr Bo said.

Compared with the project, it is more noteworthy that WAL-MART and No. 1 store finally let the industry see the cooperation at the product level. In May 2011, WAL-MART entered the No. 1 store, accounting for 17.7% of its shares. In August 2012, the Ministry of Commerce approved WAL-MART's holdings of 1 shop to 51.3%. However, shop No. 1 has sold rumors for two times in the second half of the year.

According to press reports, WAL-MART strategy After investing in shop No. 1, No. 1 is part of WAL-MART's global e-commerce. In addition to the sale of WAL-MART's own brand goods in shop No. 1, shop No. 1 also enjoys WAL-MART's global supply chain, sharing procurement and logistics, and establishes its barrier advantages in the field of imported food.

However, Shop 1 and Wal-Mart The "slow" cooperation has attracted much attention, which is why Shop No. 1 has been repeatedly sold out. Especially after Jingdong and Ali have been listed, the domestic electricity supplier ecology and pattern are gradually changing. Only 1 stores in TOP10 are non-listed company. There is a view that WAL-MART may have other considerations for shop No. 1, which still needs to burn money continuously.

WAL-MART's net profit in the 2014 fiscal year was $16 billion, down 5.7% compared with the same period last year. In September of this year, in response to the rumour of "selling Huarun", shop No. 1 responded directly, "No. 1 shop and strategic partner WAL-MART have never had contact with Huarun group on capital cooperation. The cooperation between Shop No. 1 and WAL-MART is progressing smoothly, and the two sides are very satisfied with the current business arrangement.