<p>Walmart’s Asia chief executive Scott Price said that the company has no interest in entering into the competitive Hong Kong market, noting that the city’s mature market makes it an unattractive location to the company. Instead, the retail giant is focusing on expanding its stores and streamlining supply chains on the mainland and in India.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> “We enter a market because we believe that we’re able to add value to the customer and make a difference through scale,” said Price, adding that “given the maturity and the duopoly that exists in Hong Kong,” opening stores in the city did not interest the US-based firm.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Greg Foran, Walmart China Chief Executive, says he sees more room to grow Sam’s Clubs in China as well, according to Wall Street Journal. He noted that expanding Sam’s Club’s footprint could help offset a traffic decline in Walmart’s China stores in the past several years. Foran’s plan for the company’s future in China is to cut prices online and increase the number of imported and private-label goods to get an edge on the already competitive market.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Walmart had previously announced plans to open 110 new facilities in China from 2014 to 2016 in addition to the 30 it already opened this year. Its focus will be on western China and second- and third-tier cities where the company sees opportunities to leverage its global sourcing and distribution network to compete against less resourceful regional players, according to South China Morning Post. With scale like this, the company could deliver like-for-like product savings of 10 to 40% in Walmart’s mainland stores, said Price.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> In other areas for potential savings, Walmart is planning to supply all its stores by the end of next year through a chain of distribution centers, each responsible for keeping shelves stocked and screening products for deficiencies.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> As the competition heats up in China, how will Walmart’s cost-effective strategy and plans for expansion on the mainland work out in the long run?<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Stay tuned to AndNowUKnow as we follow Walmart’s expansion into China.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://www.scmp.com/business/companies/article/1385419/walmart-keeps-expansion-path-china" target="_new"> South China Morning Post </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://online.wsj.com/news/articles/SB10001424052702304173704579265352720654732" target="_new"> Wall Street Journal </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">
