Dive Brief:
- Walmart’s Jet.com has teamed up with the country’s largest Asian grocer, H Mart, to expand its Asian food offerings with popular items like Pocky snacks, kimchi and instant noodles, according to Buzzfeed.
- With 65 stores nationwide and a comprehensive grocery offering online, H Mart specializes in Korean CPG products and staples.
- Jet.com’s recent rebranding focused on targeting shoppers in large city centers to offer a tailored assortment of products and a "city grocery experience" featuring local brands and curated selections with same-day and next-day delivery.
Dive Insight:
Walmart holds the title of consumers' online grocer of choice, and its Jet.com strategy is part of that success. Walmart gave Jet.com a refresh last year with the hopes of making it more appealing for city-dwellers, specifically targeting its young, ethnically diverse consumers.
There are a few reasons Walmart is expanding its Asian offerings through Jet. For one, diverse demographics are carrying more weight, as the U.S. Census Bureau estimates that the country’s multicultural population will add 98 million people by 2060 and the Brookings Institute reports that 44% of the 75 million millennials in the U.S are a minority.
Additionally, roughly half of multicultural shoppers say engaging with a brand that reflects their ethnic heritage is a priority but three-quarters of them want a convenient experience when it comes to finding their favorite products. Walmart’s decision to stock ethnic products online in addition to its standard fare is one way to build customer loyalty while also responding to shopper demands for convenience above all else.
Income levels among multicultural populations are also rising, giving them additional spending power to enjoy the convenience of online shopping, while about one-third of people across demographics report eating ethnic food at least once a week and are willing to pay more for it.
Although H Mart has a strong brick-and-mortar presence as a specialty grocer, especially in New York and New Jersey, the partnership with Jet.com expands its footprint exponentially and provides it with a much broader customer base. While the grocer does offer e-commerce, offering its products through Jet will offer a one-stop shop for customers who are only willing to make one total grocery haul.
On top of its Jet.com brand refresh, Walmart also opened a state-of-the-art warehouse facility in the Bronx to facilitate same-day delivery throughout metropolitan New York City for groceries and general merchandise. Jet.com also recently partnered with New York City’s Fulton Fish Market to sell seafood direct to shoppers in the region.
