Why Home Depot Failed In China A Look Inside China’s Social 5 months ago   05:54

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Home Depot bought Home Way, a Chinese home improvement company, in 2006. The acquisition marked the first time Home Depot had expanded beyond North America. With a booming economy and strong real estate market, China seemed like an easy win for Home Depot. Within six years, the company had closed all its stores in China.

In the 1990s, the Chinese government loosened regulations on the housing market, allowing its 1.2 billion citizens to own private homes for the first time since the Communist revolution in 1949. Home improvement and furniture companies like Sweden's IKEA and the U.K.'s B&Q rushed to meet the need.

In 2006, Home Depot bought the Chinese home improvement company Home Way, giving them 12 stores in the country. With its booming economy and strong real estate market, China seemed like it would be an easy win for America's home improvement giant.

But by 2012, Home Depot closed the last seven of its 12 original stores. The company doesn't break out sales data by country, but data from Euromonitor shows that China only accounted for about .3% of Home Depot's annual net sales. Analysts say that Home Depot failed to do its homework on the Chinese market, missing the mark on consumer needs and culture.

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Why Home Depot Failed In China

Comments 685 Comments

life sucks
Why Popeyes Failed In Africa
Kashmira Brahmane
What's home depot's brand appeal?
nothing human
I mean "duh" I'm no CEO but even I know there were going to be major cultural and behavioral differences, the world isn't America lol
King Tut
The better question is how Home Depot was successful in America? Their stuff is crap.
Lanijiro
This should be basic common sense stuff you learn in Business or Marketing classes. Unreal that they are millionaires getting paid to make these AWFUL decisions. How do they not understand- or even study the culture before planting themselves there?! What an embarrassment- it makes me realize that so many citizens are far overpaid for the work they claim to be capable of.
springer 11724
Homedepot is a paradise for DIYers. But homedepot never had any chance in China, becuase there are virtually no DIYers in China.
joneswood36006 Voysbroveahin
LOL my girl May Hongmei Gao is absolutely roasting Home Depot right now hahaha
Americans doing DIY not because they find it fun, it's because it's too expensive to hire someone.
houchi69
Let's be honest, rich Americans don't go to Home Depot either.
Chaotic Storm
Who did u interview very unprofessional she sounds like she has basis knowledge at best herself.
Dirty Guy
chinese people 🤮
Robert Cleary
Bhahahaha omg "negotiation"
Huy Vu
Somehow, I misread the title "Home deport".
宋JINGZHI
Apple mobile phone is a luxury
jds hempfarm
I got it. Complete makeover done by a professional, who knows where the wholesaler is. No retail market at all.
Linda Easley
Because people in China aren't used to doing things for themselves
Varfee Kanneh
They can robed American but they can not robed Chinese
Windsong1 wong
The video is sooo good , why didn’t Home Depot ceo watch this. Home Depot is clueless about the chinese consumers.
U Haul
Agenda 21
Social engineering

So da geographic caste system is population center based,
Not acreage & affordability.
Tim Jefferson
Wait they have Home Depot in china
QinZhang Wong
TAIWAN is a part of china, stupid map ,and old picture
Add Reply

A Look Inside China’s Social Why Home Depot Failed In China 5 months ago   08:07

NBC’s Janis Mackey Frayer goes inside the factories making facial recognition scanners that track the movements and communities experimenting with China’s social credit system.
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