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“Walmart’s India Takeover: Cheaper Imports for Bigger Gains

Changin global dynamics in the global economy have recently impacted Walmart Inc., one of the world’s biggest retailers, as it shifts imports from China to India to get better price than what was previously available. Walmart, which is the world’s largest retailer, has been giving preference to Indian goods over Chinese products for a while now. The company has been in search of cheaper suppliers of products in order to reduce the costs incurred in imports from China. Although Indian producers are able to offer cheaper prices than China due to the low labor costs, the quality of products coming out from Indian factories has been a concern for the large corporation. Therefore, Walmart has made sure to conduct strict quality tests before finalizing any deal with Indian manufacturers. So far, Walmart has imported items such as apparel, houseware, and kitchen supplies from India. They plan to further expand their sourcing operations in India by directly contracting with Indian manufacturers, as opposed to relying on global procurement nodes. This shift in strategic sourcing could have a significant impact on the Indian economy. In the short-term, it could lead to higher exports and create more employment opportunities for local workers. In the long-term, the effects of Walmart’s operations in India will depend upon how effectively the company is able to manage quality control. If the company fails to ensure a certain level of quality in its sourced products, it could harm Walmart’s brand equity in the long-run. Overall, Walmart’s shift from China to India will result in direct economic benefits to India as well as economic opportunities to be explored by local companies. However, it remains to be seen as to how this shift will impact the long-term prospects of the company and its suppliers.