India wants to sell more to Wal-Mart
Brian Carroll -- Furniture Today, June 28, 2004
High Point — India's government is courting Wal-Mart in hopes the retail giant will begin sourcing more products, including furniture, from India instead of China.
The Business Standard newspaper in India reported the Indian government is forming a committee to facilitate Wal-Mart's sourcing from India and that Wal-Mart is sending a team to India later this month to explore furniture and jewelry sourcing opportunities.
Wal-Mart sources about 90% of its imports from China, according to the retailer's Web site. It already sources a small amount of furniture from India, primarily out of New Delhi.
The Indian government committee will include officials from the textile and commerce ministries and representatives from export councils responsible for product categories such as handicrafts and furniture, according to the newspaper.
Among issues the committee is charged with examining is infrastructural bottlenecks, a problem the Business Standard reported international companies had complained about in the past. The committee also will aid Wal-Mart in identifying exporters capable of meeting the chain's needs.
India also is targeting Kmart, Target and JCPenney.
Wal-Mart has been criticized for its reliance on and possible exploitation of low-cost labor in China. In addition, U.S. government investigations into alleged dumping by Chinese manufacturers and duties that could result from these investigations have spurred companies to look at sourcing alternatives to China.
For Wal-Mart, India and Mexico top the list.
