In the same period, only 60% of shipments originated from China, a decline from the 80% recorded in 2018. However, it’s important to note that China remains Walmart’s primary country for importing goods.
Walmart is shifting its imports from China to India to the United States in an effort to reduce costs and diversify its supply chain, as revealed by data from bill of lading figures shared by data firm Import Yeti.
Between January and August of this year, one-quarter of Walmart’s U.S. imports originated from India, compared to just 2% in 2018. During the same period, only 60% of shipments came from China, down from 80% in 2018.
The move reflects the rising costs of importing from China and growing political tensions between the U.S. and China, prompting large companies to explore alternative sourcing options in countries like India, Thailand, and Vietnam.
Walmart’s executive vice president of sourcing, Andrea Albright, emphasized the need for supply chain resilience. Walmart is actively importing a variety of goods from India, ranging from toys and electronics to bicycles and pharmaceuticals.
The company has accelerated its growth in India since acquiring a majority stake in Indian e-commerce firm Flipkart in 2018, committing to importing $10 billion of goods annually from India by 2027. The shift to India is driven by factors such as a growing workforce and technological advancements, making India an attractive manufacturing destination.
Walmart, which employs over 100,000 people in India, is strategically embracing the country’s manufacturing potential, aiming to create redundancy and reduce reliance on any single supplier or geography.
The rising cost of shipping goods from China, along with the COVID-19 pandemic exposing weaknesses in global supply chains, further contributes to the decision to diversify sourcing locations. Other countries, including Pakistan and Bangladesh, have also benefited from Walmart’s strategy to expand its supplier base for home and apparel products.
