Walmart turns to India for cost-effective imports
OAN’s James Meyers
10:03 AM – Wednesday, November 29, 2023
In a bold move to cut costs, Walmart is shifting its focus from China to India for importing goods to the United States.
According to data discovered by Reuters, Walmart has significantly increased its imports from India, accounting for one quarter of its U.S. imports between January and August this year, compared to just 2% in 2018.
During the same period, only 60% of Walmart’s shipments came from China, down from 80% in 2018. These figures were shared by data firm Import Yeti with Reuters.
“We want the best prices,” emphasized Andrea Albright, Walmart’s executive vice president of sourcing in an interview. “That means I need resiliency in our supply chains. I can’t be reliant on any one supplier or geography for my product because we’re constantly managing things from hurricanes and earthquakes to shortages in raw materials.”
Walmart commented on their reduced reliance on China for imported goods, stating, “We’re a growth business and are working to source more manufacturing capacity.”
India’s stock market has been thriving this year, making it a more attractive option for large-scale, low-cost manufacturing compared to China.
Furthermore, Walmart’s CEO, Doug McMillon, had a positive meeting with India’s Prime Minister Narendra Modi earlier this year, as expressed by Modi on X, formerly known as Twitter, on May 14. McMillon stated that Walmart would “continue to support the country’s manufacturing growth and create opportunity.”
Walmart has been expanding its presence in India since 2018 when it acquired a 77% stake in Indian e-commerce firm Flipkart. In 2020, the company committed to importing $10 billion worth of goods from India annually by 2027.
Currently, Walmart imports close to $3 billion worth of goods from India each year, solidifying its position as the world’s largest retailer.
Notably, Walmart’s competitor Amazon is also increasing its involvement with India, aiming to export merchandise worth $20 billion from the country by 2025.
According to supply chain experts, the rising cost of shipping goods from China has prompted major supply companies to shift their focus to India.
“Sourcing from mainland China has become less competitive because of rising labor costs versus other manufacturing centers,” explained Chris Rogers, research analyst at S&P Global Market Intelligence’s supply chain analysis group Panjiva.
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What factors have influenced Walmart’s decision to reduce its reliance on China for imported goods
Walmart Shifts Focus from China to India for Importing Goods
By [Your Name]
In a significant move aimed at reducing costs, retail giant Walmart has decided to shift its focus from China to India for importing goods to the United States. According to data discovered by Reuters, Walmart has significantly increased its imports from India, accounting for one-quarter of its U.S. imports between January and August this year, compared to just 2% in 2018.
During the same period, only 60% of Walmart’s shipments came from China, down from 80% in 2018. These figures were shared by data firm Import Yeti with Reuters. This shift in sourcing highlights Walmart’s efforts to diversify its supply chains and reduce reliance on any single supplier or geography.
“We want the best prices,” emphasized Andrea Albright, Walmart’s executive vice president of sourcing in an interview. “That means I need resiliency in our supply chains. I can’t be reliant on any one supplier or geography for my product because we’re constantly managing things from hurricanes and earthquakes to shortages in raw materials.”
Walmart commented on their reduced reliance on China for imported goods, stating, “We’re a growth business and are working to source more manufacturing capacity.” This move aligns with Walmart’s commitment to supporting India’s manufacturing growth and creating opportunities.
India’s stock market has been thriving this year, making it a more attractive option for large-scale, low-cost manufacturing compared to China. Walmart’s CEO, Doug McMillon, had a positive meeting with India’s Prime Minister Narendra Modi earlier this year, expressing a commitment to support India’s manufacturing growth and create further opportunities.
Walmart has been expanding its presence in India since 2018 when it acquired a 77% stake in Indian e-commerce firm Flipkart. In 2020, the company committed to importing $10 billion worth of goods from India annually by 2027. Currently, Walmart imports close to $3 billion worth of goods from India each year, solidifying its position as the world’s largest retailer.
It’s noteworthy that Walmart’s competitor Amazon is also increasing its involvement with India, aiming to export merchandise worth $20 billion from the country by 2025. The rising cost of shipping goods from China has prompted major supply companies to shift their focus to India, according to supply chain experts.
“Sourcing from mainland China has become less competitive because of rising labor costs versus other manufacturing centers,” explained Chris Rogers, a research analyst at S&P Global Market Intelligence’s supply chain analysis group Panjiva.
As cost-efficiency and diversification become crucial considerations for retailers, Walmart’s move to shift its focus to India for importing goods demonstrates the changing dynamics of global trade and the increasing importance of India as a manufacturing hub.
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