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Standing at the top of Fortune 500 for successive 3 years, Wal-mart catches the world's eye on its fast growth. Just before its global annual board meeting the first time in China, Mr. John Menzer, Chief Executive of Wal-mart International division, received an interview by People's Daily.
The interview took place at a conference room in the head office of Wal-mart which was rebuilt on an old warehouse in Arkansas in US. Mr. Menzer said the core of his company's culture is to respect individuals, to serve customers and to pursue excellence. He thinks the three principles are cornerstones of Wal-mart's success and link his company with China.
Excited at talking about Wal-mart's story in China, Mr. Menzer described the incredible way Wal-mart has gone through in China since it entered the country in 1996. Starting with a shopping mall and a membership store in Shenzhen, the giant retailer has extended its business into 18 cities in China with 39 stores employing more than 20, 000 people. The great Chinese culture and the Chinese people full of enthusiasm for development have created Wal-mart's best chain stores.
The company spent 15 billion USD in China in direct and indirect purchasing in 2003. As to the question about whether it would keep on its policy of local procurement, Mr. Menzer answered that they buy goods in bulks locally in all countries, including China. As the biggest overseas sourcing company for Chinese goods, it will place even bigger order in China. This is what their customers are expecting, as they are looking for quality services at low prices, Mr. Menzer believes.
Mr. Menzer thinks Wal-mart's purchasing chain and product standard will help to improve the popularity of more Chinese goods among customers around the world and Chinese manufacturing industry will benefit from it. When asked about whether Americans would lose their jobs due to Wal-mart's procurement activity in China, Mr. Menzer replied that given the fact that every country and every business were involved in a fierce competition amid economic globalization, Wal-mart implemented local sourcing policy to guarantee the best prices. He said they were servants of customers who need Chinese goods, saw the value and increasing improved quality of Chinese goods. That's why Wal-mart is buying more in China.
Mr. Menzer spoke highly of the management team and staffs of Wal-mart China. He also gave some suggestions on the development of China's retailing sector. In his view, China's retailing sector is facing challenges like the lack of interests sharing structure and difficulty in goods procurement. Wal-mart has told Chinese enterprises how supply chain can be improved and costs be brought down. He wishes Wal-mart can contribute to the growth of China's retailing industry which is on its way of development. His company welcomes competition and competition makes it stronger, Mr. Menzer believes.
According to Mr. Menzer, Wal-mart International, the division he is in charge of now, has opened more than 1000 chain stores in 11 countries as a result of 13 years' operation. The turnover has reached US$47 billion. The secret of their success is their excellent staffs, quality goods and systematic operation. Wal-mart is strongly aware of the importance of satisfying various needs of different areas and adjusts their corporate culture, goods and products to cater for the customers in different countries. It also brings its global experience to staffs in local stores.
Wal-mart's expansion poses threat to local small retailers and has resulted in some negative impacts on local labor market and environment. So it has encountered some resistance. It lost a referendum on its new stores plan in Inglewood, California. Mr. Menzer said despite of the setback in Inglewood, Walmart had opened stores in many areas in California at a faster pace than expected. Wal-mart puts customers first and California promises good prospect. The company will carry on its commitment to the area.
When asked about whether Walmart had new plan of acquisition, Mr. Menzer answered that as a global business with only 13 years of development, Wal-mart was still very young and would learn a lot form world's big pals. Wal-mart keeps on studying and seeking for new opportunities of expansion.
(People's Daily June 8, 2004)
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