Retail giant Walmart shifts to India from China for cheaper imports

“We want the best prices,” Andrea Albright, Walmart’s executive vice president of sourcing said 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.”

In a statement, Walmart said the bill of lading data painted a partial picture of what it sourced and that creating redundancy “does not necessarily mean” it was reducing reliance on any of its sourcing markets. “We’re a growth business and are working to source more manufacturing capacity,” Walmart said.

India has emerged as a key component of Walmart’s efforts to build that manufacturing capacity, Albright said.

Walmart has been accelerating growth in India since 2018, when it bought a 77% stake in Indian e-commerce firm Flipkart. Two years later, it committed to import $10 billion of goods from India each year by 2027. That is a target it remains on track to hit, Albright said. It is currently importing around $3 billion worth of goods from India each year.

Workforce, technology are key draws

Walmart is importing goods ranging from toys and electronics to bicycles and pharmaceuticals from India to the U.S., Albright said. Packaged food, dry grains and pasta are also popular imports from India, she added.

India, whose stock market has risen to record highs this year, is viewed as the country best equipped to outperform China in low-cost, large-scale manufacturing.

Its rapidly growing workforce and technological advancement were a draw for Walmart, Albright said. China on the other hand reported its first decline in population in six decades last year.

Walmart started its sourcing operations in Bangalore in 2002. Now, the company employs more than 100,000 people, including temporary workers, in the country spread across several offices under its Walmart Global Tech India unit, Flipkart Group, PhonePe and sourcing operations.

Walmart CEO Doug McMillon met Indian Prime Minister Narendra Modi in May this year, a meeting that Modi termed “a fruitful one.”

“Happy to see India emerge as an attractive destination for investment,” Modi wrote on X, formerly known as Twitter, on May 14. McMillon said Walmart would “continue to support the country’s manufacturing growth and create opportunity.”

Go to Source