This is the second entry in a series of posts looking at China as it relates to Wal-Mart in the aftermath of the Olympic games.
Today, we'll take a look at product safety.
Wal-Mart's business model is based on low prices. That means both how much they pay for a product, and how much they sell a product for. In the first post in this series, we looked at how this frenzied urge to reduce labor costs drove manufacturing to China. Today, we look at how Wal-Mart, based on the same desire for cheap goods, is responsible for a myriad of dangerous products.
When Wal-Mart goes looking for the cheapest products, or forces their vendors to do so, they don't consider things like safety, treatment of workers, or labor violations. They are looking for the lowest price, period. And as they pit factories against other factories to get the cheapest price, factories start to cut corners in order to keep their prices down and make an acceptable profit.
This has resulted in an astounding list of unsafe products reaching consumers, often with terrible consequence. Pet food sold at Wal-Mart, for instance, sickened or killed what could be thousands of pets. Wal-Mart had Aqua Dots on their top toys for Christmas list, but it turns out that when kids ate the little plastic pieces they went into a coma. Wal-Mart sold lead laced Christmas lights and Christmas trees and Key Chains. Wal-Mart was also selling salmonella tainted snack food that was made in China. This is just a small sample of the dangerous products sold at Wal-Mart. You can see a full list of recalled products here.
The problem got so bad that it was announced just a few days ago that the United States would be posting product safety inspectors in three Chinese cities.
This is great news in terms of products coming from China. In the future, products coming from that country will likely be less dangerous. Unfortunately, as mentioned in the last post of this series, China is swiftly becoming a more expensive option for manufacturing, and this will only serve to make it more expensive. That means major companies like Wal-Mart will simply move to other countries with lax guidelines and cheap labor. It means Wal-Mart will continue to put its consumers at risk by manufacturing and selling dangerous goods.
Posted by Taylor - August 28, 2008 03:49 PM - In The News
I BEG TO DIFFER I COULD NOT AFFORD TO FEED 15 CATS IF IT WERE NOT FOR WALMART ($1.08 AT STORE) (.$70 AT WALMART) NOT ONLY WALMART BUT ALL THE STORES GET THEIR MERCHADISE FROM CHINA. I DONT THINK YOUR EMPLOYER OR THE GOV.SHOULD HAVE TO SUPPLY HEALTH CARE I HAVE TO BUY MINE! STOP GIVING IT TO ALL THE ILLIGALS
Posted by PAT - September 13, 2008 02:22 PM