‘My boss is the Chinese customer’: Walmart China CEO Christina Zhu on how the Fortune 500 company is thriving in a tough retail market

In 1996, Walmart set up its first Chinese store in Shenzhen, years before China joined the World Trade Organization. The Chinese retail scene was vastly different back then, with no large-scale hypermarts; shoppers would start their day early to buy the freshest produce at local markets. Over the past three decades, a larger middle class and strong manufacturing skills have made China a highly competitive, dynamic consumer market.

This rapid change has been a double-edged sword for retailers; those unable to adapt quickly face closure, while successful firms become very efficient, agile, and globally competitive. Walmart's China business saw a 20.7% growth in the last quarter, outperforming other global divisions like Walmart U.S. (which only saw a 2.6% increase).

Christina Zhu, CEO of Walmart China, comments on this success by saying, "Customers everywhere want similar things—they want assortment, value, convenience, and emotional experiences." However, in China, convenience means something different. For instance, while it might take three days to receive an online order elsewhere, here customers expect it within a 30-minute window.

To adapt, Walmart China has shifted from brick-and-mortar stores to an omnichannel strategy. Over 50% of their sales now come from online purchases. Zhu admits that this transformation was challenging, but they've managed to become a fully-fledged omnichannel company. Despite the shift, Walmart still maintains a strong physical presence with nearly 300 Supercenters across 100 cities.

Walmart has also been expanding its premium, members-only chain, Sam's Club, in China. Last week, the company opened its sixth Sam's Club in Beijing. Zhu emphasizes that their focus remains on serving their customers, saying, "I only have one boss, and my boss is the Chinese customer." This story was originally published on Fortune.com.