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

When U.S. supercenter chain Walmart opened its first Chinese outlet in Shenzhen in 1996—five years before China joined the World Trade Organization—the retail landscape in the country looked vastly different.

With no large-scale hypermarkets, shoppers rose at dawn to snag the freshest produce at local wet markets.

Yet in the past 30 years, China’s rising middle class and deep manufacturing capabilities have given rise to one of the world’s most dynamic, and competitive, consumer markets.

And the relentless domestic competition has proved to be a double-edged sword for retail companies: Those that can’t adapt quickly are stamped out, while the most successful firms become hyperefficient, agile, and globally competitive.

Walmart, for one, saw its China business grow by 20.7% last quarter.

That’s faster than Walmart’s other global businesses (Walmart U.S. saw sales grow by 2.6% ), and bucks a broader trend of sluggish retail sales within China.

“Customers everywhere want similar things—they want assortment, value, convenience, and emotional experiences,” Christina Zhu, president and CEO of Walmart China, said at the Fortune Leaders Forum in Macau on Sept.

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“But in China, there’s a whole different degree of intensity: Convenience might be defined elsewhere as receiving an online purchase in three days.

Here, it’s [more like] 30 minutes.” Walmart’s Chinese outfit has also been forced to shift its strategy over the years.

With the rise of domestic e-commerce giants like Taobao and Pinduoduo, Zhu’s team has moved from solely operating brick-and-mortar stores, to building a strong omnichannel network. (Today, 55% of Walmart China’s sales revenue comes from online purchases.) “Coming from a traditional business, it took a lot of effort to try to transform the organization,” Zhu admitted.

“I think we’ve passed that [hurdle] and are today a fully-fledged omnichannel company.” (Walmart still has a significant physical presence in China, operating nearly 300 Walmart stores across more than 100 cities.) Doubling down Although many Western brands, including Starbucks and Lululemon , have struggled in China, Walmart continues to deepen its footprint, opening over 10 stores and clubs across China in the past year.

Zhu attributes the brand’s success not to any particular localization strategy, but rather, her team’s dedication to meeting their customers’ shopping needs.

“I only have one boss, and my boss is the Chinese customer,” Zhu said.