Dive Brief:
-
On Tuesday, Wal-Mart Stores hosted an “Open Call” event, where American businesses that make their products in the U.S. could present their goods to Wal-Mart buyers. The company has pledged to spend $250 billion by 2040 on American-made products. Many businesses received trial distribution deals via the event.
-
Wal-Mart US CEO Bill Simon has said the economics of producing in the United States are changing, considering that production costs in Asia are going up.
-
Plus, American-made products increasingly appeal to consumers in the U.S.
Dive Insight:
While businesses making American-made goods are enjoying a recent surge of appeal as more consumers value the “Made in the USA” tag, the truth is that they must work hard to compete with the low wages and large-production efficiencies of Asian factories. Many of those businesses are encountering all kinds of production challenges.
Getting a distribution deal with Wal-Mart Stores would be quite a boon to such businesses, with great potential to increase their profile as well as their sales. It’s quite an experiment for a retailer that has kept its prices excruciatingly low, in large part thanks to low manufacturing costs overseas.