Why did Walmart fail in China and Germany and why did it not enter Colombia?

Today the market is characterized by various commercial companies such as Walmart that try to meet the needs of consumers. Its objective is to have discount stores , low prices, quality of the product and that are easily accessible to the public.

Walmart commercial retail company is one of them and has managed to position itself in the first places of the international market. This company provides services and satisfies the needs through its 11,000 physical stores where it offers many products and 2 million workers, being a great generator of jobs.

There are many reasons that have made Walmart a giant in the product merchandising industry. Among the main reasons we have their commitment to the communities where their stores are located, where they carry out large social projects , they also promote new entrepreneurs and support them.

Walmart offers its regular customers great possibilities to acquire discounts, and even makes available a line of credit . This is how Walmart customers want, they can request a credit card to make their purchases with the support of the same company. All this has allowed Walmart to expand around the planet, positioning itself in the most competitive markets.

Walmart was established in Chile, Argentina, Costa Rica, Canada, Mexico, Great Britain, Brazil, Puerto Rico, Guatemala, Honduras, Nicaragua, China and Germany. These last two countries being an acquisition failure, rumors of possible entry into the Colombian market were also found.

Reasons for Walmart’s failure in Germany

With its purchasing power and its fame as a large retail company worldwide, it managed to obtain supermarket chains. Unfortunately, the locations of the stores are difficult to access to the German clientele, generating large million-dollar losses for Walmart.

The successful sales strategies in the United States did not work for consumers in Germany. The main reason is the fact that German consumers are used to the sales style of their country.

Another reason for its failure was the reaction of the workers to the labor system imposed by the American company. Starting with a bad translation of the informative text of the requirements for workers, and an ill-advised code of conduct. All these things were reasons for discontent and what brought legal problems to the company with the workers.

These are controversial events that have never happened to Walmart before in other countries. For these reasons we can say that Walmart had a hard failure in the German market, due to these important factors.

But also, this global sales giant is not doing very well in the China market. Join us to learn a little more about the reasons that have generated this situation for the Walmart company in China.

 Reasons for Walmart’s failure in China

Arriving in the Chinese market with high expectations in the 1990s, Walmart acknowledges that it has not been successful in this country. Among the reasons that accompany this failure of Walmart in China  are various cultural, legal and internal factors.

The main factor behind the declines in sales in this country stems from the same reason as in Germany. The marketing methods implemented by the various Walmart stores are not to the liking of the Asian consumer . Chinese consumers are used to its commercial style, leaving aside what the Walmart supermarkets offer.

The company made the same mistake as in Germany by not adapting to the sales culture of its consumers. Which brought as a consequence a very low level in the sales of its supermarkets throughout the country. On the other hand, she was also involved in various legal problems with the foreign country and with the United States. He also had to take action due to internal problems that occurred, even firing a good number of managers.

These factors have undoubtedly significantly affected Walmart’s success in China, as well as in Germany. Regarding the issue of its arrival in the Colombian market, it seems they were only speculations, from some news media. Well, the company has not disclosed if it has real intentions to enter this market for now.

 

by Abdullah Sam
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