How Walmart is Winning in China

Good morning, Nerders. It’s Tuesday, August 27th. In today’s newsletter, we cover:

• Walmart — How Walmart is winning in China

• Stocks — Returns before and after a stock enters the top 10 by market cap

• AI Bubble — Where is all the AI revenue

TODAY’S STORY

Apple, Tesla, and Starbucks are all losing momentum in China.

Meanwhile, Walmart has bucked the trend, posting revenue growth of 17.7% in China for the second quarter despite a sluggish Chinese economy and increased domestic competition.

Walmart’s winning strategy in China includes:

• A strategic partner in JD.com who helped them learn how to operate in the competitive Chinese e-commerce market

• A cash cow in Sam’s Club that is driving growth and revenue as Chinese consumers are falling in love with membership club warehouses

• A robust supply chain with multi-temperature cold chain distribution centers, empowering Walmart to outperform competitors in delivering fast and fresh products

Most importantly, Walmart adapted its business model to cultural differences and committed to sourcing locally. For example, Walmart partners with beloved local restaurants to appeal to Chinese customers and foster a sense of community.

Walmart’s strategy is helping them thrive while others are flopping.

OUR PICKS

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DATA BYTES

• The performance that got a company into the top 10 of the S&P 500 Index hasn’t tended to last

Disclaimer: This is not investment advice. Past performance does not guarantee future results.

#SHORTS

Where is all the AI revenue?

@boringbusinesskieran

Where is all the AI revenue? // Make sure to follow me to keep up with the latest business stories and trends #business #ai #amazon

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To read the web version of previous stories, click here

If you have any comments or feedback, just respond to this email.

Thanks for reading,
Kieran & Justin Ryan