How does Wal-Mart go on the road of unsteady electricity business

The traditional retail industry has flocked to Net's case, in the United States, the traditional retail giant Wal-Mart was formally launched in 1996, is currently ranked third in the United States E-commerce. However, Wal-Mart's electric business path is not smooth.

If Wal-Mart is to be considered as the world's largest retail giant, its electric-business path has not been surprisingly successful, far behind the big Amazon, which is only half its market capitalisation. According to comscore, Walmart.com sold $6 billion in 2010, accounting for less than 2% of Wal-Mart's total sales, while Amazon is up to $34.2 billion trillion.

It was not until 2011 that Wal-Mart first upgraded global E-commerce to strategic goals and launched the @walmartlabs project, while also starting to acquire outstanding people in social networking sites and mobile technology, through data mining of social network depth, To integrate Walmart.com with physical retail stores and mobile applications, which constitutes synergy.

This paper mainly studies the Wal-Mart's strategy to enter the electric business, from the results of the study, Wal-Mart intends to expand the Chinese market and investment in emerging areas to win the next wave of retail business opportunities, which is the same as the thinking of many internet companies in the country.

Bumps the electric trade route

Wal-Mart founded in 1950, Walton opened the first special shop in the town. Wal-Mart entered a massive expansion phase and developed rapidly in 1962, when the first discount store named "WalMart" was officially open. Wal-Mart was listed on the NYSE in 1972.

As of 2012, Wal-Mart had a market capitalisation of more than $200.5 billion and 13 times times earnings. In the same year, its net sales amounted to $443.9 billion trillion, about 9 times times as much as Amazon, creating a net profit of 15.8 billion dollars.

In practice, Wal-Mart has undergone a period of common development, from grocery stores to discounted retail stores to shopping malls, storage clubs, community stores, convenience stores and E-commerce.

In Wal-Mart's earnings, we found that it divided the retail business into Wal-Mart US stores, international business and Sam's Club, where Wal-Mart's US stores include Wal-Mart discount stores, shopping malls, community stores and Walmart.com. Online, Wal-Mart is arguably the king of Global Retailing, but its online retailing business is a bit bumpy.

A McKinsey report shows that one-eighth of U.S. productivity growth between 1999 and 1995 can be attributed to Wal-Mart. However, when it comes to electronic commerce, the situation is completely different. As early as 1996, Wal-Mart launched its own online shopping website Www.walmart.com, and its online business was headquartered in Benton. At that time, the company's president and CEO David Glass had the ambition to say: "In the next two years, the company's E-commerce Web site to become the most complete range of products and services on the Internet, the category of the richest online sales site, and further integrate the advantages of Wal-Mart's traditional retail business operations, Enable the company's online business to be in the e-commerce market can be compared with Wal-Mart in the traditional retail field of the great success. ”

However, the results of this attempt are far from being expected. Wal-Mart suffered a Christmas "disaster" in 1999, and on the eve of the holiday, Wal-Mart had to announce the cancellation of all orders on Christmas Eve due to its inability to withstand massive distribution tasks.

After that, Wal-Mart rallied, launched its online business in January 2000, and announced a partnership with Accel Partner, a venture capital firm, to operate the company's online retailing as an independent emerging internet start-up, with its headquarters in Silicon Valley, to better attract network and technical talent.

Just net that year, Wal-Mart online sale of the number of goods is very limited, mainly bulky products. After the revision of the company's website in 2000, online goods were divided into 24 categories, including appliances, pets, toys, tourism and other more than 500,000 commodities, but has been criticized. At that time, retail giant Amazon is also vigorously expanding the product and service categories, new kitchen furniture, photographic photography and health care category, while the introduction of Third-party platform business.

2000, is the U.S. electric industry reshuffle of the year, the electric business experienced the impact of the internet boom, rearrange the position. Wal-Mart, by virtue of its offline retail advantage, achieved better results online, with a net income of $1.596 billion in the second quarter, compared with Amazon's $577 million trillion.

2003, Wal-Mart online can only provide some of the goods (do not sell goods below 5 dollars), but the type of commodity is increasing, and contains some goods (such as mattresses, etc.) which do not have in the entity store, the service also starts the omni-directional consummation, may provide the on-line shopping, the order inquiry and the tracking return replacement, the preferential information and so on omni-directional service. In 2004, Wal-Mart began selling music online at 88 cents/first price, competing with Apple's itunes. In the four-day sale of thanksgiving in 2004, in order to attract high income shoppers, some new and valuable products are also starting to provide online special, such as cashmere sweater, massage chair. The promotional campaign brought effective feedback, and before that, Wal-Mart's online weekly visit was 8 million, and by November 2004 the weekly visit was 11% higher than the peak of the 2003 festival.

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