(WLM) Products - Discount , Supermarkets, Hypermarkets Turnover -
$ 351.1 billion (2007)
Net Income -
Officials - 1,900,000 (2007)
W al-Mart. Always the lowest prices. Always. (USA)
- Save more. smile more. (USA) WE SELL FOR LESS Every Day!
- (Canada) Street
- But I point out something that has escaped the most (among the more you put the undersigned, of course). First, what is the strength of Wal-Mart? Wal-Mart arrives, what happens? In the U.S. more or less the case that Wal-Mart sells at a lower price than that at which the small shop or small local supermarket buys the goods he sells to consumers. By its nature, the child is forced to close, and this in USA. The American business model does not fit, however, to Italy or Europe (except England, which has a mentality similar to the U.S.). The cultural differences are too marked and corporate culture of Wal-Mart is not compatible with that of Europe, thereby preventing the development of a business in the old world. But not all.
Speaking of Italy, for example, we see that no "clashes" only the company's corporate culture with the Italian lifestyle, but there are issues which may be difficult for Wal-with the habits Mart develops its business strategy. to conquer the market, a large-scale distribution would act in this way: opening Point Of Sale ( PDV), advertising hammering
loss lasting for 1-2 years. In the short term we have no revenues or may even be losses, but the Market Share ( QDM) is increased to make the POV of a GDO monopoly (or quasi-monopoly) local.
At that point raises the price and recover the losses with future profits guaranteed by the absence of competition.
In Italy there is a loss Act, promulgated in the early '90s (if not '92 iron), which establishes rules for the use of this business tool. For example you can not make a loss more than 3 per year for a maximum of 10 days caduno, not less than 20 days apart, on no more than 50 references / product codes (ie products for sale). This measure will prevent Wal-Mart to penetrate the Italian market (which is also saturated and difficult growth) with its classic business model, which is based on proposing the lowest price, not including promotions and clearance sales throughout the year. Thinking about the description of the law above, and we well understand why Wal-Mart is not a "high" threat to European supermarket chains (always excludes the UK in which WM is present with about 350 PDV).
Mobility in Italy is generated by promotions and loss. say that the promotion in general is used to generate traffic to your own POV and to seek long-term customer. This "species" of customer (sustained type) is that the directors of Marketing Research for your business: the loyal customer. And it is a very common animal in the U.S.. In Italy, however, there is a widespread phenomenon, whose players are called Cherry Pickers:
That of 'cherry pickers'
fighting their personal battle against high prices, is , a category that the marketing people hate the retail amiably. Why hypermarkets and discount stores, supermarkets and mini markets, are spending like never before in promotional activities, designed to capture the buyer in the long term. The price of the truffle dogs how, unfaithful to the nth degree, is a loose cannon. Street isinsardegna.it
It 'difficult to maintain a very loyal clientele, that does not react to promotions and offers in a country like ours, where they are on the agenda.
The Italian, in short, is a price that (joke: when he does not buy clothes or shoes), looks at us.
What is your impression?
Another question: do you think the qualitative component of the service is still important with regard to certain areas of retail? (Eg consumer electronics)
And finally, Wal-Mart can change our culture with its (almost ) huge economic resources?
Tiziano Technorati Tags: Wal-Mart
, GDO, Distribution , POV , Price, Marketing
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