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.
When it comes to the international expansion, Arabic world is probably one of the toughest markets. It is no secret that it is very conservative and what is often widely accepted in the West, is oftentimes a taboo in the middle East. Due to cultural differences communication with target audience becomes a cornerstone question. Especially, in such industries as apparel. Fashion has always been a frivolous matter. Therefore you need to be extremely cautious when marketing your fashion-related products in Arabic countries. This is exactly what puma learned the hard way in United Arab Emirates.
The map shows national preferences when it comes to choosing particular brand of car. Surely, French people will opt for the French cars and Germans will drive their own. But what about the rest of the Europe? The 1st place is held by Volkswagen which is #1 choice in 10 countries. Then goes SKODA with 6 countries. 3rd place share Dacia, Renault and Fiat; each of them holds the major share in 4 respective markets. But what one can learn from this situation?