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Why Walmart Is Failing In Japan

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Walmart made headlines in July 2018 when Nikkei Asian Review reported that the company was looking to sell its Japanese subsidiary, Seiyu. Walmart told CNBC it will continue doing business in Japan, but company filings show that it has closed more than 100 Seiyu stores in recent years. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC #CNBC #Walmart #Retail Why Walmart Is Failing In Japan | CNBC
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Text Comments (1055)
Matthew Smith (1 day ago)
At 2:28 mark, the reporter says "Japanese consumers like to buy fresh, locally sourced foods." Question- Does fresh in this context mean actually fresh, as in very recently picked vegetables in the case of produce, fresh, never frozen meats not from factory farms and fresh caught seafood, etc.? In the U.S., when people say "fresh produce", they often mean "not frozen", even if the vegetables came from another state or even another country, and arrived weeks after being picked! Wal-Marts in the U.S. have no truly fresh vegetables to my knowledge, just like most grocery stores here, and they often aren't local (as in vegetables picked within 100 miles of the store). I ask, because although it is only mentioned briefly, maybe this preference is one of the biggest drivers of the WM failure there. Also, this would further explain why the food in Japan is so good. For those who have the opportunity, please support local farmer's markets and see what a difference truly fresh vegetables can make!
MathGamer87 (2 days ago)
Good, I hope Walmart burns in Japan. That country is way too good for a snake like Walmart.
Joshua Han (2 days ago)
Walmart also failed in my home country of South Korea! I love it.
LIITEMIES (3 days ago)
too big. go home. shares not divided enough. its not then a share. bigger=divided=stable=people.
ExaKel (3 days ago)
Is this part of CNBC's series on how US companies fail internationally?
Molossus (5 days ago)
Interesting video. One of the thing retailer often misjudge is the how the geography of a country shapes its citizens along with their consume behavior. Large retailers like Walmart and Costco yield the most where there's the need for people to stock on supplies because of their distance from any store, that's why US and Canada work well for these brands but Japanese have a different approach on size and bulk. So Japanese appreciate small quantities of items to understand the quality and price bargain, also because grocery shopping is an enjoyable ritual that prompts people to walk leaving their home to engage with their neighbors and others. Moreover Japan's life style is made of smaller spaces which don't allow for the Walmart model to work as intended because its incipient is the North American continent.
Shreyas Rajanna (6 days ago)
Why CNBC is making company failing video
sum body (7 days ago)
Yesterday saw that McDonald's was failing in Vietnam, and today that Walmart failing in Japan... Been a good couple days.
Bilal Musakhan (7 days ago)
Walmart in the uk .oh no! More like Tesco in America from the uk
Michael Aceti (8 days ago)
Walmart fresh produce quality is poor, as is their meat, so that is a big no no in Asia, especially in Japan.
Pyroman / (9 days ago)
Cuz they don't spend cash like America does
Anthony Unabia (10 days ago)
Why Walmart is failing in japan? Martwal (ripoff)😂😂😂
Yen Cho (10 days ago)
Congratulations to WALMART..
Pearl of the Dark Age (10 days ago)
Good. Walmart sucks. Keep that disease out of other countries!
Ellaiza Maputi (13 days ago)
Woah I grew up in Japan but I didn't know there was a Walmart all I know was Costo
Ramy (14 days ago)
Japanese does not like circuses 🤣
荒井康彦 (16 days ago)
Walmart SEIYU is by my house in Japan.SEIYU almost bunkrupted,Walmart bought SEIYU.After Walmart bought SEIYU,I expected something change,but they do not change anything.Only name changed.Price,number of commodities,service・・・almost nothing.I think Walmart do not want to improve siriously,I disappointed.May be many Japanese think,too.
Applecycles (17 days ago)
Well... Me as an Indonesian is waiting for a Walmart store to be made in here.. But still don't know about that since theres already a popular store like Walmart but with less item categories, but hey.
xmngr (17 days ago)
Walmart bought Líder supermarkets here in Chile, they kept everything untouched and they've been doing well.
SailorWolfFang (17 days ago)
Normally I get sad when I hear that a business is failing, but for some reason... I don't care.
Sailesh Jayachandran (19 days ago)
Walmart is full of cheap chinese products.. No wonder it failed in Japan.
62 Dub (20 days ago)
Why would anyone shop at Walmart when there are local markets on every corner? :P
Abu Feras Abdullah (20 days ago)
Love this series 👍🏼👍🏼
Hmmm (20 days ago)
If Seiyu is owning 12% of the market and isn’t making a loss (yes, if) there is absolutely no reason to exit the market unless Walmart has liquidity issues to solve for.
astari djatmiko (21 days ago)
doesn't work in Indonesia too
Lavelle Andrae (21 days ago)
Japanese people love the experience!! Exactly!! SEIYU should have came with the Walmart name too.
caamir zaki (21 days ago)
Japanese don’t eat fake food and GMO FOODS that is why they could not sell anything so they had to leave
Grenherb (22 days ago)
because japan doesn't need american garbage.
Danielito9320 (22 days ago)
Same thing happening in Chile! Walmart is having a hard time building a Wal-Mart with its brand. I'm Chilean and we love buying fresh fruits and vegetables from flea markets in the streets.
Out of The Hat (22 days ago)
I'm American and I avoid Walmart like the plague, Walmart is based on the majority of America where things are really spread out and people mainly shop at Walmart because it is the closest store to them. In densely populated areas in America, Walmart does really poorly because it isn't set up to compete for what urban consumers want. Why is anyone surprised that in densely populated Japan, it also fails, if it can't even compete in a similar situation in its home country? Urban consumers want convenience and quality and variety, and Walmart doesn't offer any of that. It has a huge selection, but it's always the same huge selection, so it's boring too. Plus Japanese consumers tend to have a lot of stay at home moms still, so they are using shopping methods that works in America where almost everyone is a dual income family instead of the retail methods that were mainstays in America two or so generations ago when there were a lot of stay at home moms. Though if they really wanted to differentiate themselves they could find a way to get top quality dairy products to Japan for less than $8 for a lousy block of cheese.
John Contos (23 days ago)
walmart in japan chicken chow mein in shanghi bejing taiwanda
zzyzzyton (23 days ago)
I liked seiyu because it was open 24 hours a day.. too bad trial was open 24 hours a day as well and way cheaper
Legendary FARREL (24 days ago)
Is there Walmart in Indonesia
Sveva (24 days ago)
I’m sorry but the intense background music is driving me insane, I could not watch for more than a minute
Damin Mance (24 days ago)
Fake news Japanese love Walmart!
Damin Mance (24 days ago)
3:36 he was about to steal and saw he being watched and hurried to put it back lol
Jaime Hernandez (24 days ago)
But KFC is doing well in japan
Esteban Fuentes (24 days ago)
Easy! Japan doesn't support American companies.
Rohit kumar (24 days ago)
why Walmart is in hurry? Didn't they realize that there is something known as market survey. Why big companies are making such silly mistakes?
AZ (25 days ago)
They failed in Brazil as well. It had nothing to do with the market but with their terrible management, changing frequently CEO, besides the everyday low prices flunked strategy.
Flutemonster Kpop Lover (25 days ago)
i think that walmart is also failing in Mexico because of the expensive prices.
Aryunani Herminawati (26 days ago)
Same. Wallmart is falling in indonesia. Too fast.
Jae Park (26 days ago)
I mean, this was expected. Japanese conbini (7/11, family mart, pretty much American "gas" stations) offer you a lot of stuff at a decent price.
Hexiryy (26 days ago)
Good news that there will be no walmart store here in the Philippines. Recently, a fake news was released in 2014 stating that the very first walmart branch in the Philippines will be opened in Bonifacio Global City in Taguig but when you go there today there isnt any walmart held there. Also if it really entered Philippines, there is a chance that they can compete with other market chains like Robinsons, Puregold, and SM. They can even have the chance to destroy small businesses here. Also most Filipinos are health concious so they often choose wisley when buying foods unlike Walmart that are plain selfish that they only sell things that are good for themselves but not for their buyers.
v8Truckerchannelv8 (26 days ago)
Come to the Netherlands Walmart
Michael McNamara (26 days ago)
Michelle Grant is pretty
Dustin Ducote (26 days ago)
they also got run out of Korea. Walmart. Save Money. Rip-off American shoppers!
Ars 1 (27 days ago)
Japan is decades ahead of the world they don’t want our red neck crap!
Ten Minute Tokyo 2 (27 days ago)
Because they don’t want all their local businesses obliterated. Smart countries boycott the corporate giants into oblivion.
Aaliyah White (27 days ago)
I love watching these fail videos because it shows other countries are smarter than us
David Flynn (28 days ago)
The put the stock too high up on the shelves
Luna Assassin (29 days ago)
Aeon is everywhere in Malaysia
wenaldy (1 month ago)
Japanese doesnt simply shart in their mall.
Chandelle Loop (1 month ago)
Seiyu = See You, bye bye Walmart, hope you fail.
Frisbieinstein (1 month ago)
There are little supermarkets everywhere. Why go miles to a Walmart when you can walk?
MrTSK27 (1 month ago)
Fewer units NOT less...
Insane Proton (1 month ago)
Coz one Japanese citizen saw nuke in walmart
J LOCK MVK 25 (1 month ago)
because walmart not go to online
Mixberreh (1 month ago)
Well there's no any WALMART in SOUTHEST ASIA country (asean)
Glotch (1 month ago)
This video makes me want to fly to Japan to just to go shopping at Walmart.
reviewer that doesn't even review (1 month ago)
Because Jake Paul shouted it and you knew that his brother is banned from Japan
Dave Jasper (1 month ago)
can someone make a playlist of this series tho
Elasta Kristya (1 month ago)
starsweeper11 (1 month ago)
Walmart already failed in Germany about 15-20 years ago for not doing any research about cultural differences. You think they would have learned their lesson. They 1) underestimated the power of German unions & 2) stocked their cheap stuff made for the US market. The sheets they sold didn't fit German beds for example.
Christine Lee (1 month ago)
If anyone’s been to Seiyu, you can see that their prices aren’t even (that much) cheaper than other grocery stores.
THEBRIDGE1283 (1 month ago)
Wait since when Walmart was in Japan....??
THEBRIDGE1283 (1 month ago)
I was born and raised in Japan and didn't even know lol
joseph jr. (1 month ago)
they have famiri marto!
Jaden Hurtado (1 month ago)
Walmart is full of gmo and chemical foods, Asian countries care about there diets unlike westerners
BARBATUS 89 (1 month ago)
I loved seeing the "Made in China" tags on things I bought at a Miami WalMart while I was saving to move to China. I ended up in Cambodia instead, but I'm fine with that. I plan to visit Japan in some years God-willing.
bobocharchar (1 month ago)
The reason why western retailers fail in Asian markets is because, as what videos like this show, their “insights” are almost exclusively drawn from western “experts” who comment on local markets from their western-centric standpoint.
MK Uis (1 month ago)
I never shop in walmart... i don't want cheap stuffs. I only shop in wholefood or Mitsuwa
ian4serena (1 month ago)
if walmart is run like it is here in canada with poor stock and poor service no wonder it was failing
Jabari James (1 month ago)
dylan real flesch
Azmi Yudista (1 month ago)
The Maniac 90876 (1 month ago)
I live in Indonesia and hav an Aeon nearby. Just cant stop buying pokemon cards there. Its the same Aeon as the Japanese one shown in these video. Aeon is just greeat.
the real PewDiPie (1 month ago)
Because walmart hate anime
They have rakuten too
Joe Briggs Jr (1 month ago)
Get out Walmart! Bic camera and DonQ
Zack 691 (1 month ago)
Walmart is fail in Japan, 7 Eleven is fail in Indonesia, And Starbucks is fail in Australia
Mr. HeavyDebater (1 month ago)
It's a foreign company that competes with them on prices on nearly everything that comes from China. Unlike Costco where many shoppers sometimes buy in bulk to sell again (because their local supermarkets don't stock everything), they can't make much money off a foreign budget company. If the economy nosedives a few percentages more then it would make sense because it means abandoning "made in Japan" mentality and going for far more affordable options. Secondly, there are several local companies that sell international goods like Kaldi Coffee and of course Costco as well as miscellaneous stuff like Donki Hote. If there was a walmart in my area I would definitely go there, it is cheaper and their own stuff are just as good as Aeon or Ito Yokado.
Love God (1 month ago)
1. Dunkin donuts failed in India 2. Starbucks failed in Australia 3. McDonald's failed in Vietnam etc etc Western outlets needs to understand Asian culture and preferences.
Naomi (1 month ago)
costco in japan also offers specific things that other local grocery stores dont: lots of international products (reese's cups, oreos, etc), and turkeys (arent carried elsewhere because theyre too big) being only a few examples. rotisserie chickens are a huge seller too, as ppl will wait in huge lines for them. blueberries are another item that the ppl treat almost like a delicacy. the appliances there are unique too, because you can get american sized fridges and freezers instead of the tiny ones most ppl would normally have, to enable ppl to actually store all of the bulk items they are also buying at costco. so they are not only providing the food, but the items needed to store the food, which benefits them both ways.
BlazeMasterGaming (1 month ago)
LOL that cringy pronunciation of the Nikkei 😂😂😂
Emak Gaming (1 month ago)
Request : Why Walmart isnt avaible in Indonesia?
Naughtysauce (1 month ago)
I hope Walmart & especially Amazon don't get their grubby hands on Japan. It would just transform them into overweight, highly awkward, anti social, mass murderers if they ever did, just like Americans.
Kyle Lopez-Vito (1 month ago)
Walmart is pretty meh once you've been to a Don Quijote. You can literally buy a $20,000 Rolex and a $1 bag of chips in the same store. And besides, there's always a convenience store nearby and most of them stock essentials like cooking ingredients, and not just booze and junk food.
Nantz Stein (1 month ago)
This co fails everywhere
Flash (1 month ago)
It's because Japan doesn't have over-weight women with tattoos shopping there.
martin W (1 month ago)
But isn't Walmart just a U.S.A only thing. Cause I never have seen one in Europe and when I was in Asia I also never came across one.
Marlon Mariano (1 month ago)
Hello CNBC can you please do research why WeChat is not is popular or failed in the Philippines.
Andrew Tung (1 month ago)
You guys will never understand how good is Asian 7-11, etc type of business. It's so convenient, every block you will find one. 24/7
Mark AD (1 month ago)
Walmart is not cheap enough, survival of the cheapest.
HigesoriHanzo (1 month ago)
It’s bad enough you pronounced Nikkei wrong but Aeon? Come on! It’s an English word.
h30202 (1 month ago)
Isn't Walmart not doing so well in US?
HD93 (1 month ago)
Pretty sure has to due with spending habit. Walmart may look cheap but if you do the math it probably comes out the same. Thus, they go to the local store instead.
Click ThumbsUp (1 month ago)
CNBC doesn't know the difference between less and fewer lol Interesting video though.
Sela Lewis (1 month ago)
5:42 for a quick second, I thought this was produced by Draymond Green.
Goemon Ishikawa (1 month ago)
McDonald failing in Vietnam, Starbuck failing in in, Walmart failing in Japan, Dunkin Donut failing in India What else?
YUKI JINJUJI (1 month ago)
Walmart owns asada and couple others in japan
M D (1 month ago)
Another factor is Japan's income distribution is more even, in the US a large part of the middle-class is getting squeezed to the bottom because of stagnant wages and corporate greed that reaps huge profits and doesn't reinvest into society. Therefore most people shopping in the US are looking for cheap bulk because the future is more grim, the attitude is like hoarding for the winter. In Japan income is more even, the middle-class feels more stable so they enjoy things like seasonal foods and don't feel a need to buy cheap bulk for a lean future, they get to enjoy the present and have a higher stable income to afford it.