I’ve been in Germany this week studying the European business environment at the WHU. In studying Germany in particular, we discussed an interesting insight. While cultural differences in other parts of the world are expected, fundamental differences in how consumers consume is sometimes overlooked. Beyond just consumer preferences, the way people purchase products here is very different than in the US or other parts of Europe.
Walmart learned this the hard way and recently pulled out of Germany all together. Germans purchase food in smaller amounts than in the US (many don’t have a car and their kitchens and apartments are smaller), but more often. They don’t like too many choices. They bring their own bags and bag their purchases themselves. They don’t smile without reason and they treat their employees very well. There are already small discount chains here who can sell at prices lower than Walmart, but Germans require a certain level of quality at a price point. (These are all generalities, obviously, but do point out some of the differences that many companies don’t even bother to consider.)
Walmart pretty much ignored both cultural and consumer differences with its German operations. They tried to run German stores like they do in the US with corporate policies that don’t work here. And while they did change some policies, they were very slow to do so. After 10 years of trying, they recently closed all their stores in Germany.
Even companies who only operate in the US or in one country still need to be cognizant of differences in how people want to purchase from them. Customers in different industries or for different products may have different purchasing cycles or product preferences or contact preferences (among other differences). The Walmart case reminds us to learn about our customers before we try to sell to them. Luckily social media makes this easier than before.
Have you experienced differences in consumer preferences or purchasing?
(photo by Sarah Worsham)
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