Walmart China and Xiao Hu Duck reached an in-depth cooperation agreement last year. With fresh taste, trendy design and convenient packaging, the new customized product developed by the two companies quickly won the favors of customers on Walmart's omni-channel platforms, helping Xiao Hu Duck unlock new sales landscape in the post-COVID period. Since its launch six months ago, the item archived a maximum 8-fold monthly sales growth year-on-year.

Collaborating with brands to innovate and find new growth 

This new consumer era witnessed an eruption of new brands. Mature brands have also ridden the tide to explore innovation and transformation and thus maintain their edge in competition. Leveraging insights into core consumer needs, Walmart teamed up with manufacturers in collaborative innovation to develop new products that fit into emerging consumer trends. These products generate new growth opportunities for the brands while attracting traffic to the retailer, a win-win between partners.

Xiao Hu Duck makes for a great case study. Based on analysis of the niche category and consumer groups, Walmart requested the development of a spicy and sour lemon chicken feet flavor, further customized with deboning treatment and trendy packaging design. The uniqueness as a result creates a differentiated experience. It taps into growth potential in new customers and help Xiao Hu Duck incubate hit products that meet market demand with a shorter trial-error process.

Another example is WangBaoBao, a healthy cereal brand now trending online. The Fruit Duoduo Baked Oatmeal has landed the heart and palates of customers soon after its omnichannel launch with Walmart. As snack-inspired healthy food becomes a thing lately, Walmart has worked with the brand to customize a new item - Baked Oatmeal in Red Bean Milk Tea Flavor. The innovative taste and small, portable packaging help the product sell into more life scenarios.

Embracing iteration of local brands to deliver refreshing shopping experiences

Under the new consumer trends, emerging brands continue to win over the attention of consumers. Walmart has been introducing new brands as well as with collaborating with mature ones, all in efforts to maintain a refreshing shopping experience for customers and propel long-term business growth. In the first quarter of 2021, Walmart introduced hundreds of new item in the snacking category alone. Walmart and the brands invest in offline omnichannel marketing, where data is connected and traffic is shared and boosted together. Walmart provides quality endorsement for the brands besides expanding their customer reach. In return, these brands keep engaging Walmart’s customers in fresh shopping experiences, offering special appeal to the new generation of shoppers.

China’s local chic brands are taking the center stage. "Wenheyou", "WangXiaolu" and other local chic brands have won over a new generation of customers. Their sense of added cultural values has generated more emotional connectivity and resonance with consumers. Walmart has been working with brands like Wenheyou to sell their snack foods. At the same time, it has also expanded cooperation to cover more categories with brands like Three Squirrels and Baicaowei and introduced WHIKO, YOULINGYOUSHI and other trendy brands. In the household category, Walmart has introduced new-generation packaged rice and cereal brand SHIYUEDAOTIAN, including Wuchang Daohuaxiang Rice, Tricolor Coarse Rice and other items. The brand has made Walmart the first stop for its nationwide omni-channel sales expansion. 

Capturing trends to help brands blaze new trails

While snacks are often associated with impulsive shopping, consumers put much more consideration into them over the recent years. While still easily tempted to purchase, consumers now pay increasing attention to the nutrition and health factors in snacks. Capturing this shift, Walmart has placed stronger emphasis on quality, health and portability when planning the category.

Targeting consumer’s surging demand for healthy and high-quality convenient foods in the post-COVID era, Walmart and Ramen Talk reached in-depth cooperation at the end of 2020. During the Spring Festival season, Ramen Talk products were promoted as "Premium Items for the Chinese New Year" in store and online. The two companies make joint online and offline efforts to attract traffic for each other, with sales soon reaching 10 million RMB. Ramen Talk has now made Walmart one of its most valued retailer to launch new products every quarter.

Walmart has continuously developed high-quality snacks like the "Original Pork Cut" and the low water content beef jerky. At the same time, it also pays high attention to eye-catching IP elements or chic packaging design, while introducing “additives-free”, “low-calorie” and other healthy foods, presented in portable packs. Upholding the quality first rule, Walmart also double down on omnichannel marketing and precision digital marketing, which has helped new items become hit right upon launch and those "limited edition items as seen in livestreaming" break open new growth at Walmart to reach wider customers.