Dive Brief:

• Wal-Mart Stores Inc has taken full ownership of Chinese e-commerce firm Yihaodian.com.

• Wal-Mart is looking to quickly grow its e-commerce business in order to capture a chunk of China's fast-growing online market.

• The purchase is also expected to boost coordination between Wal-Mart’s physical and online stores.

Dive Insight:

Wal-Mart said the purchase will help it tap the growing popularity of e-commerce in China.

"[Yihaodian's] local experience, combined with Walmart's global sourcing and our strong local retail presence and supply chain will allow us to deliver low prices on the products customers need in new and exciting ways," said Neil Ashe, head of Wal-Mart's e-commerce division.

A growing number of companies are betting on e-commerce in China, as that country finally opens its doors to foreign competition. Last month, China said it would allow full foreign ownership of some e-commerce businesses, and Wal-Mart was quick to jump on the opportunity. A McKinsey report predicts that by 2020, China's "e-tailing" market could generate up to $650 billion in sales.

Alibaba Group Holding Ltd and JD.com Inc. are the current e-commerce leaders in China.