Wal-Mart's German Faux-Pas
Opening corporate outposts in overseas markets is by no means a new phenomenon but, judging from Wal-Mart's recent missteps, one might assume that the learning curve is still a
steep one. In the wake of pulling out of South Korea two months ago, the retail behemoth took a $1 billion hit and admitted defeat in Germany, selling its 85 stores to local
rival Metro. Wal-Mart's most glaring error: misunderstanding regional consumer habits, as often happens when businesses expand internationally. Though the corporation stayed
afloat for nearly a decade, it hardly stood a chance from the beginning, overlooking the majority of Germans' shopping preferences - for example, frequenting small, local stores
instead of one-stop shops. It's a lesson for all corporate communicators and PR professionals, as they bear the responsibility of exploring - and translating - consumer and
business cultures before setting up shop overseas.