Wal-Mart's China inventory to hit US$18b this year

China Daily ^ | November 29, 2004 | Jiang Jingjing

[The Loan Arranger]

The 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.

An unnamed company official also stated the firm will extend its procurement base from South China's Pearl River Delta to the North and East China in the coming few years.

A market rumour says the retailer has its eyes on a 340,000-square metre warehouse at a logistics garden of the Shanghai Waigaoqiao Bonded Area.

[The Loan Arranger]

"Low prices--everyday", at what cost?

[cyborg]

ping

[investigateworld]

ping

[ETERNAL WARMING]

Have you checked out their quality lately? They're getting top dollar for bottom rung quality that even Woolworths would have turned down. People are catching on...hence, stagnant sales Black Monday.

[Socrates1]

keeping the annual growth rate of over 20 per cent consistent over two years.

Strange way of showing that they are catching on.

The market keeps telling them they are right. Adam Smith would approve.

[sevry]

for bottom rung quality that even Woolworths would have turned down

The counterexample would probably go to the brand names. Costco, by comparison, has a pretty good housebrand. It's difficult to be disappointed by - Kirkland brand. I remember the Price Club, which they purchased, was known for more name brands. I preferred them to Costco because of that. But the house brand is very solid.

Wal-mart - the tissues and cleaning goods are typically name brands. The vacuum cleaners, Eureka and Hoover, etc. The tools, Stanley, and of course assorted far east. But that's now true, anywhere. Even the majority of leased machine tools bear Asian names in the job and production shops worldwide. Tubs and cannisters are Rubbermaid. Kirkland may have better batteries, but Wal-Mart does carry Delco, I believe. They provide the five dollar DVDs. The all-in-one mini-system stereos at discount, often beating Costco on this one. Those are Asian or Phillips. But that's the way it is.

The problem with the made in China stuff is in more the commodity items, utensils, clothing, and so on. As for sales, I think that was predicted. The high end items, not sold at Wal-mart, were supposed to see some improvement, and the low-end was supposed to fall off a bit. That seems to be happening. Those 'prophets' appear to have got it right.

[philetus]

But, but,but, Walmart donated over a million to the repubs.

Walmart good.Crap from China good.
Wow. Cordless drill for $10.00. I paid $200.00 for my Milwaukee.
What a rube I am.

[wildcatf4f3]

I call it Chairman Mao's Outlet

[datura]

The Chinese stuff - like that cordless drill for $10 - are essentially disposable. Your Milwaukee will last for many years. I don't give a damn what anyone says, you still get what you pay for in most instances.

[Catmom]

What bothers me more is the fact that it isn't just the bottom end retailers that sell tons of "Made in China" merchandise. There's a new trend going on. The upscale stores, like Ann Taylor, Crate & Barrel, Legacy Hardware, etc., are selling increasing quantities of goods made in the PROC. And even worse, old American quality brands, like Coach handbags, are now made in China! I remember when Coach bags were handcrafted in New York City, a fact that was proudly stamped on the inside pocket of every bag. Then, in the 1990's, they started making them in Costa Rica. But China? I remember when total crap was made there. Now it's expensive Yuppie merchandise.
This bothers me even more than when the Japanese went from cranking out shlock to nearly eating our lunch. But this is a much more populous country and it's still run by Commies who only 15 years ago slaughtered about 5,000 of their own people for the audacity to want to be free. I'm not optimistic that huge amounts of trade with these people will necessarily create a freer, more open society for them.

[dennisw]

Keep outsourcing high paying hi tech jobs and they can only afford made in China stuff from WalMart!

[Moonman62]

The market keeps telling them they are right. Adam Smith would approve.

I think some of those who would like to stick a pitchfork in Walmart are acting out of guilt because they've secretly been buying Chinese goods there.

I'm also reminded of a famous line: Walmart is so busy nobody goes there anymore.

[Moonman62]

I don't give a damn what anyone says, you still get what you pay for in most instances.

In most instances people are perfectly happy with a $10 disposable drill.

[Bandaneira]

The $10 Disposable Drill has a market for many reasons. Not all of these reasons are healthy. When someone makes a decision to buy something they usually go through a lot of thought processes before actually parting with their hard-earned. Thoughts such as : "What could I use this product for ?" ; "Do I need this product right now ?" ; "How long will I need this product for ?" ; "How long will this product last ?" etc. etc.(I wont continue along this line. Writing a post on my theories of markets and consumer behaviour would take up many, many pages.)

The $10 Drill may suit someone just fine if they only need it for a minor job and don't need the best quality drill on the market. The world market for goods and services is so fluid and interesting at the moment because there is so much going on in the world.

We do live in very interesting times. I have a pretty good idea of how it is all going to work out. People may be happily shocked at the beauty of the design of the world's future economic system...

[Moonman62]

I have some of the real cheap tools, and never had a problem with them because I only use them occasionally. I use the saved money to buy the quality tools when and where I need them.

[Bandaneira]

Yes the Price : Value : Quality : Utility equation is different for each person.

[q_an_a]

all of the goods are not coming to America. WalMart has huge stores in China and Europe and Mexico. That means that poor people and thrifty middle class are getting LOW Prices.

WalMart is a funcition of the service failure of the World i.e. "If we live in a service economy how come you can't get any?"

[Callahan]

What would happen if China ever did become free? Talk about a capitalist juggernaut. My kids would probably end up moving their to find work.

[af_vet_rr]

The ultimate irony are people who consider themselves patriots and throw a $0.99 American flag (made in China) on their car.

Regardless, while I'd like to jump on a soapbox about American-made goods, the fact is many people can't afford anything more than Chinese goods from Wal-Mart. You can blame that on those people, on the economy, on outsourcing, whatever you want.