Retailers Switch From China to India
Big U.S. retailers like Wal-Mart and Gap are bracing for rising costs when China revalues its currency by increasing imports from India. Wal-Mart, which runs an 86-employee purchasing office in Bangalore, is bumping purchases from India up by 30% this year. Retailers are switching focus to India because the revaluation of the Chinese yuan could increase costs by 10% over two years. India’s costs for producing clothing is about 1% less than China’s, although the quality is reportedly comparable to the best in the world.