WAL-MART’S ADVENTURE IN JAPAN:

You Cant Please All Of The People All Of The Time

Presented By:
Gaurav Mittal
Varun Shanker
Ravi Bhakt
DoMS NIT TRICHY
 Wal-Mart Philosophy
• Rule # 1: The customer is always right
• Rule # 2:If the customer happens to be
wrong, refer to Rule # 1
 Wal-Mart… a snapshot
• Wal-Mart is the largest private employer and
the largest grocery retailer in the United
States
• The world's largest public corporation by
revenue, according to the 2008 Fortune Global
500
• Revenue > US$ 404.16 Billion (2009)
• Operates in 18 countries
 Japanese Culture
• Companies supported society by providing good jobs with lifetime
guarantees of employment.
• Japanese companies tended to be viewed as job-creating machines
• Jobs cuts are viewed as detrimental to Japanese society
• Japanese media is more emotional than its American counterparts
• Shopping is spread throug-oht the week, and is often done by
bicycle or on foot
• Consumers wanted to see the details in print to compare (Chirasi)
• “yasukarou, warukarou” – if it’s cheap, it’s bad
• Great Taste for “Shashimi”
• Food in Japan changes with the seasons
 Abstract
• Wal-Mart expansion plan in Japan
• Its struggle with the retail corporation Seiyu
• The mistakes committed by Wal-Mart in
understanding the Japanese Market
• The steps taken by the retailer to please the
Japanese customers
 Mistakes
• Failed to understand Japanese Corporate
Culture
• Shattered company’s image by Japanese Media
• Lack of understanding of Japanese consumers
buying pattern
• Failed to understand Japanese consumer’s
quality perception
• Failed to communicate benefits to the
customers
 Mistakes (cont…)

• Standardization of product
• Lack of financial consolidation with Seiyu
• Failed to introduce fashionable products
• Not preferred retailer by the suppliers
• Japanese consumers are very nationalist
regarding the products they purchase,
especially for American companies
 Solutions
• To make shopping memorable experience
• Focus on the cost cutting measure
– Through the technological involvement
– Change people’s perception that it creates more
jobs in-directly s compared to jobs cuts at store
• Better communication strategy
– Low price vs. quality
– Re-branding exercise
• New store format
– Smaller store size with multiple
location
– Better visual merchandising
– Increase in product range, especially
the foreign goods
• New pricing strategy
– Differentiating between Luxurious
goods and food products
• Supply Chain Re-engineering
– More emphasis on seasonal products
– Decentralize strategy for local and seasonal goods
• Backward supplier integration
– Becoming the preferred retailer
– Removing the multiple layer
• CSR initiative
– Helped for visually impaired
persons
– Earthquake relief funds and
activities
– Investment in renewable energy
– Social environmental
awareness(Go-Green) programs
to build image
THANK YOU