Why Walmart Fails In Japan

Wal-Mart : Not Turning Japanese Anytime Soon

Introduction

The current recession in the United States means that low-priced retail outlets such as Wal-Mart are flourishing while specialty stores like Circuit City are going under . In the United States , families on a budget seek out quality merchandise sold at bargain prices in to get by , and Wal-Mart is a large part of how families stretch their ever-shrinking budgets . Wal-Mart 's official beginning took place in 1962 when Sam Walton and his wife put up 95 percent of the capital needed to open the

first store in Rogers , Arkansas . Before long , Wal-Mart went public and became one of the most successful retailers in the world . Its success , however , has not fully translated to several other countries such as Germany and most recently , Japan . Wal-Mart was given the green light to partner with Seiyu , Ltd , a popular Japanese grocery store in to bring its own style of retailing to Japan . After six years , it is clear that this overseas venture has been an abject failure , though not necessarily a terminal one

It is reasonable to assume that consumers throughout the world seek quality merchandise at low prices . It is irresponsible , however , to enter a country without first understanding the nature of its consumers Wal-Mart 's failure to truly comprehend the nature of Japanese consumers is only one of the reasons for its monumental failure . While American youth are hung up on trends and tend to wear what their friends are wearing , the...