| Reliance Retail, which is planning to do a Wal-Mart in India, is set to start sourcing operations in China mainly to import large quantities of electronics and footwear products, reports HT. It will open an office in Shanghai in the next few days.
"Right now, Reliance Retail is in the process of hiring people to manage the Chinese operations. The location for the sourcing office has already been identified," said a retail industry source. Its Chinese sourcing team will have more local people as knowledge of language is essential in negotiations.
Wal-Mart's Indian sourcing office in Bangalore largely has Indian employees. Reliance is also forming a sourcing team for India, which will work closely with the Chinese office.
The company is also starting a sourcing office in Hong Kong which has emerged as a hub for many international retailers. Sources said that employees from international buying houses are joining Reliance Retail's sourcing operations in India.
Retail industry sources said that Reliance is planning to outsource goods from China for its private label business. The company is planning to market a lot of consumer durable products under the private label category.
Reliance's move to source from China is in tune with the strategy of global retailers like Wal-Mart, Tesco, Carrefour and Target, adds the report. Wal-Mart buys 30% of its total products from China, according to global retail industry estimates. In fact, Wal-Mart's founder Sam Walton started the Chinese connection in the mid-80"s by importing sun glasses at cheaper prices.
This should be Chinese music to the ears of visiting Chinese President Hu Jintao who is focusing on improving business relations with India.
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