Top Brand Failures due to Differences in Culture

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5. Home Depot

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Home depot was set up to serve the home improvement hobbyists and tinkerers of the America’s suburbs. Looking at the surface, it seems like things might be similar in China too. The country has a culture of ingenuity with a growing middle class and new owners.

When the company entered china in 2006 it thought it would do perfectly well here too. It waited for the money to cash in while it acquired a local firm and stocked 12 stores of materials and tools. After six years of struggling in the market the company quit by closing 7 stores and firing 850 employees.

Firstly was the nature of China’s housing market. Many people buy homes for investment and speculation, not to improve.

Secondly was the store format. Chinese business that operate usually do not invest in big large spaced warehouses.

Finally, and most fatally, Home Depot tried to bring American notions of DIY to a market where labour was so cheap that most people simply hired a handyman




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