Data from Import Yeti reveals a significant change in Walmart’s import strategy, with a notable shift from China to India.
Increased Imports from India
- Walmart, the world’s largest retailer, shipped one quarter of its U.S. imports from India between January and August this year.
- This marks a substantial increase from just 2% in 2018, showcasing a strategic move to diversify its sourcing.
Reduced Dependence on China
- Only 60% of Walmart’s shipments came from China during the same period, down from 80% in 2018.
- The data reflects efforts to cut costs and navigate escalating political tensions between the U.S. and China.
Walmart’s Resilient Supply Chains
- Andrea Albright, Walmart’s executive vice president of sourcing, emphasizes the need for resilient supply chains.
- The goal is to avoid reliance on any single supplier or geography, considering various challenges like natural disasters and raw material shortages.
India’s Role in Walmart’s Growth
- Walmart has been accelerating growth in India since 2018, following its acquisition of a stake in Indian e-commerce firm Flipkart.
- Commitment to import $10 billion worth of goods from India annually by 2027, with current imports at around $3 billion per year.
Factors Driving the Shift
- Rising costs of shipping from China contribute to the move to source more from India.
- India’s advantages include a growing workforce, technological advancement, and its potential to outperform China in low-cost manufacturing.
Walmart’s Continued Support for India’s Growth
- Walmart CEO Doug McMillon’s meeting with Indian Prime Minister Narendra Modi signals ongoing support for India’s manufacturing growth.
- Walmart aims to create opportunities and contribute to India’s economic development.
Impact on Suppliers and Industry
- Walmart’s sourcing shift positively impacts suppliers in India, such as Freewill Sports, and contributes to the growth of the manufacturing industry.
- Other countries like Pakistan and Bangladesh also benefit as suppliers of home and apparel products.