SummaryCompaniesWalmart imports more from India, reducing reliance on China60% of shipments came from China in Jan-Aug 2023 vs 80% in 2018India is key component of Walmart’s supply chain, Walmart saysLONDON/NEW YORK, Nov 29 (Reuters) – Walmart (WMT.N) is importing more goods to the United States from India and reducing its reliance upon China as it looks to cut costs and diversify its supply chain, data seen by Reuters shows.The world’s largest retailer shipped one quarter of its U.S. imports from India between January and August this year, according to bill of lading figures shared with Reuters by data firm Import Yeti. That compared with just 2% in 2018.The data shows that only 60% of its shipments came from China during the same period, down from 80% in 2018. To be sure, China is still Walmart’s biggest country for importing goods.The shift illustrates how the rising cost of importing from China and escalating political tensions between Washington and Beijing are encouraging large U.S. companies to import more from countries including India, Thailand and Vietnam.In the U.S., shoppers face higher interest rates and high food prices, eroding household savings and prompting Walmart and other retailers to become cautious in their outlook for consumer spending.”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 DRAWSWalmart 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…
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