I wrote earlier about Walmart’s announcement that it had agreed to a strategic alliance (don’t you just love the geopoliticalness of that phrase?) with Hong Kong based Li & Fung. More information is coming out as analysts consider the ramifications of the deal.

From Andrew White:

The intent is that Wal-Mart is moving closer to taking more direct control of its supplier relationships, and ultimately, the manufacturing supply resources that feeds its humongous business.

Given Wal-Mart’s size and reach this announcement has significant ramifications; short term impacts relate to those suppliers working, right now, to keep Wal-Mart shelves full; and long term, this move will put further stresses and strains on the relationship between Wal-Mart and its large suppliers. Consumer Goods suppliers and retailers share a tortuous relationship.

Even more tortuous may be the relationship between Walmart and the people who hold their noses while shopping there in a trashed economy.

Jeff Hess: Have Coffee Will Write.

This entry was posted on Wednesday, February 3rd, 2010 at 0756 by Jeff Hess and is filed under China, Customer Satisfaction, Economics, International. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.