Is the tide beginning to turn? As a result of the strenghtening RMB, Walmart have just announced that they are reducing their orders from China by a massive 40%! Is this a one-off, or will other majors exports follow suit?

Where will Walmart (and others) turn to instead? India? Vietnam? Pakistan?

See this link for more info:

http://www.thechinaperspective.com/articles/rmbappreciationdampenswalmartschinasourcingplans2390/index.html

Replying to [ChurchillUK]:
No No No, i dont think Indian people want to be blue collars, they prefer to sit in the office and play their computers..

Hey, Did you realize a scene from the movie "Transformers" ?
Those US soldiers were making a international call to their defense HQ, and the the service person was an indian!!!!
It shows, nowdays, more and more western companies are moving their call centers to India.

All in all, Service center in India, Workshop in China. that is the trend!

Replying to [ChurchillUK]:

As I understand from one of the business programs on TV, telecast long back, an Indian top brand in textiles is one of the biggest vendors of GAP. There are also some middle level industries in various fields who are already in the vendors' list of the top chain stores of USA or UK.

As I feel, Walmart must have already been sourcing from India, may be at a lesser rate compared to China. For Walmart or any other US companies, diverting from China to India is possible but to what extent it will be fruitful for them is not known yet, as in recent times, Indian INR has also appreciated beyond expections just like RMB has got stonger.

All these big names in the field of trading (chain stores) work on the principles of "Comparitive Cost" theory. They keep analysing their profits on a regular basis by using comparitive costs factors / indicators involved in while sourcing from different alternate sources. This is their key to success.

However, the recent news that we have heard is that Walmart has been preparing to enter Indian consumer market and going to open its chain stores all over India in collaboration with one Indian big giant.

Replying to [vshanker]:


 Yes, Wallmart continues to expand internationally as its domestic market reaches saturation point.  However it has had mixed results, failures in Germany and South Korea and from losses to lower profits in Japan and Argentina.  It remains strong in Mexico, Britain and Canada.  With India's huge population and growing influence of Western consumer culture, it's no surprise that it is now going there.


macs2005

Replying to [kikichichi]:

I like your joke, but if the Chinese do not catch up with the quality and productivity soon the Indians will be the one laughing.

The emphasis is not so much on Walmart expanding in India (or elsewhere internationally), moreso that they are buying LESS from China. They need to buy these products somewhere; where will they find them?

Replying to [ChurchillUK]:
I think India may have more chances.

Quoting from [ChurchillUK]:

Dear comrades,

Churchill or others may give the information about a business trend and the news: It should not offend any fellow men of the other nations:

Somebody has pointed out Indians are white collar jobers: Some has pointed out China has no capasity:

 Deponds on the man-power, infrastructure available,skill, governments support, the demand -supply and price the business jaints are making their plans: Who tells that this plans will run perfectly?or will not! why should we worry if walmart,Kmart, and any mart come and go we will do our best: 

So we plan and do our business honestly and usfully. If walmart buys in china some other mart will come to India: Donot worry: Be happy and sleep well

Replying to [ChurchillUK]:

I think they will spread the butter evenly in the low cost country across the world. I've know a company in Malaysia making extension cord for Walmart have moved their operation from Malaysia to Indonesia.

Quoting from [ChurchillUK]:

Is the tide beginning to turn? As a result of the strenghtening RMB, Walmart have just announced that they are reducing their orders from China by a massive 40%! Is this a one-off, or will other majors exports follow suit?

Where will Walmart (and others) turn to instead? India? Vietnam? Pakistan?

See this link for more info:

http://www.thechinaperspective.com/articles/rmbappreciationdampenswalmartschinasourcingplans2390/index.html

40% is a massive reduction!


Walmart can source to many different countries beside China, China is not unique. Remember the "Can US survive without China?" This is another example how US can survive without China. If Walmart can reduce China's products by 40%, so can the rest of the American Companies.

Replying to [curdrice]:
Comrades?????

Did we all change political outlook overnight and no-one mentioned it to me?