Drudge is highlighting this China Business Weekly piece:
Wal-Mart's China inventory to hit US$18b this year
By Jiang Jingjing (China Business Weekly)
Updated: 2004-11-29 15:21The world's largest retailer, Wal-Mart Stores Inc, says its inventory of stock produced in China is expected to hit US$18 billion this year, keeping the annual growth rate of over 20 per cent consistent over two years.
The trend is expected to continue, company officials revealed.
"We expect our procurement stock from China to continue to grow at a similar rate in line with Wal-Mart's growth worldwide, if not faster," said Lee Scott, the president and CEO (chief executive officer) of Wal-Mart....
So far, more than 70 per cent of the commodities sold in Wal-Mart are made in China.
Experts say Wal-Mart's plan of increasing its procurement from China has granted the firm a positive corporate reputation in the country.
"Buying more products in China means more job opportunities, which helps the firm win not only the government's hearts, but also the customers' appreciations," said Wang Yao, director of information department under the China General Chamber of Commerce.
In the United States, poor people find it possible to afford cheap "Made In China" products for their daily necessities, Wang said.
Wal-Mart, headquartered in Bentonville, Arkansas, entered China in 1996. It has opened 39 stores, including supercenters, "Sam's Clubs" and neighborhood markets in 15 cities around China, including Beijing, Harbin and Dalian.
Quite a while ago, WM stopped its pro-American campaign when they realized what a foolish strategy that really is for a discount retailer. So they buy most of their manufactures from Chinese suppliers at far lower cost. Please note that this has NOT, on net, transferred manufacturing jobs to China from the US, since the number of manufactuing jobs is decreasing in both China and the US!
Posted by Kevin on November, 30 2004 at 10:38 AM
