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Trading with Wal-Mart unprofitable, say suppliers
Mar '11
More than 80 percent Chinese suppliers supplying clothing in 2007, no longer exist in the suppliers list of US retailing giant; Wal-Mart. One by one, they stopped dealing with Wal-Mart after 2007. At present, there are more than 50 new suppliers in the list of Wal-Mart.

This fact was revealed in a survey conducted by the "Daily Economic News” recently. The survey was conducted covering Wal-Mart suppliers from Beijing, Shanghai, and Shenzhen.

As per the survey, most of the suppliers found dealing with the Wal-Mart unprofitable. Some suppliers were quoted saying that they thought; large scale trading with the Wal-Mart could help them earn handsome money, but it proved wrong.

After working with Wal-Mart, they found it really difficult even to sustain. So they discontinued working with Wal-Mart.

As per an industry source, it is a common practice for large supermarkets like Wal-Mart to change their suppliers frequently.

But it affects the traders badly, particularly when suppliers are dropped in such a manner and ratio. He emphasized on the need to understand the reasons for the same and recommended that measures should be taken to protect the legitimate interests of suppliers.

Fibre2fashion News Desk - China

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