Wal-Mart in India to focus on local goods

Wal-Mart in India to focus on local goods

Raj Jain, president, emerging markets, Wal-Mart International has said in a statement that the retailing store when it launches operations in India would focus on local goods.

He said that around 90% of all products sold in Wal-Mart stores here will be made in India. Jain further claimed that this would be among the highest levels of local sourcing by Wal-Mart.

The US based retailing giant already sources merchandise worth over $600 million from India. They are now aiming to collaborate with local manufacturers to introduce new product lines and help local vendors develop them.

Jain however added about the increased costs of operating in the Indian market: “In India, skilled manpower costs as a percentage of sales are beginning to get very high from an emerging markets point of view.”

They are considering hiring unskilled workers and give them training on job. This concept worked well for them in their home market United States.