Walmart is altering its import strategy in the United States by increasing imports from India while decreasing reliance on China, as per reports. This shift aims to reduce costs and diversify its supply chain.
Data from Import Yeti, a data firm, reveals that a quarter of Walmart’s US imports between January and August this year came from India, a stark rise from just 2 per cent in 2018. Conversely, shipments from China dropped to 60 per cent during the same period, down from 80 per cent in 2018. However, China remains Walmart’s primary source for imported goods.
This strategic adjustment highlights how escalating tensions between the US and China, coupled with increased costs in importing from China, are prompting major US corporations to explore sourcing from countries like India, Thailand, and Vietnam.
Andrea Albright, Walmart’s executive vice president of sourcing, emphasized the necessity for resilient supply chains, citing the need to manage various disruptions, from natural disasters to raw material shortages. “We want the best prices,” Albright mentioned in an interview, underlining the importance of diversification.
Walmart clarified that the bill of lading data provides a partial view of their sourcing and that redundancy in sourcing doesn’t necessarily indicate a reduction in reliance on specific markets. The company expressed its intent to grow and source more manufacturing capacity.
India has become a pivotal component of Walmart’s manufacturing endeavors, especially since its acquisition of a majority stake in Indian e-commerce firm Flipkart in 2018. Albright confirmed Walmart’s commitment to importing US $ 10 billion worth of goods from India annually by 2027, a goal they’re on track to achieve, currently importing around US $ 3 billion yearly.
Presently, Walmart employs over 100,000 people across various offices in India under units like Walmart Global Tech India, Flipkart Group, PhonePe, and sourcing operations.
