The number of Vietnamese internet users has been rapidly increasing for the past decade, naturally, such an increase in internet users also brings with it an increase in e-commerce activities and digital marketing.
In our previous post we have discussed the fact that it can be sometimes challenging for Western companies to grasp Chinese cultural differences. These challenges are, however, not exclusive to China and can often arise even when you expand to a seemingly less mysterious country. This will be obvious after analyzing a story of an American electronics mega-store Best Buy and its failed attempt to enter the UK market.
Everyone likes a good deal, right? Nothing can compare to the when you buy a desired item with a 20% or more discount.If you are a company that helps people find the best deals available, it shouldn’t be a problem to attract users. This is how things looked on paper when Groupon decided to enter China, one of the up and coming and top ecommerce markets, in 2011.
Wal-Mart, the second largest retailer in the world, entered Japan in 2002. It used its common foreign strategy of creating a joint venture by purchasing large stakes in local retailers and taking control of ownership by gradually increasing the investment. However, its standard approach has backfired as WAL MART did not take into account the specifics of the Japanese retail market.