International Herald Tribune [IHT] has a Great post by By Michael Barbaro on “The Wal-Mart brand”. The report says Wal-Mart, “was not built to inspire people while they shop, hold their hand while they make a high-risk decision or show them how to pull things together.”
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The document, prepared in October by the company’s former advertising agency and based on interviews with scores of consumers, offers a candid, wide-ranging explanation for why Wal-Mart, the No. 1 seller in the United States of everything from laundry detergent to underwear, has stumbled badly when it comes to higher-end merchandise like silk camisoles and shag accent rugs.
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The report contends, for example, that “our low prices actually suggest low quality” for products like high-definition televisions. And it says that Target, with its designer-inspired clothing and furniture, feels “like the ‘new and improved,’ while Wal-Mart often feels like the ‘old and outdated.’ “
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A copy of the 55-page report[PDF}, written by GSD&M Advertising, was provided by WakeUpWalMart.com, a union-financed group highly critical of the retailer. The group said a person outside Wal-Mart gave it the report.
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The report is prescient at times. As Wal-Mart's clothing and home furnishing business has struggled, sales at stores open for at least a year fell to the lowest levels in decades in 2007, well below those of Target. The figures are not expected to improve much over the next year, unsettling investors.
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[VIMP]: No specific explanation for the drop-off is provided, but Wal-Mart’s ad agency suggested a combination of factors, like stiff competition and public relations troubles. The latter have included a sex discrimination lawsuit filed on behalf of 1.6 million women who are current or former Wal-Mart employees and the firings of top executives, like Vice Chairman Thomas Coughlin, for stealing company funds.
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Chris Kofinis, director of communications at WakeUpWalMart.com, said, “Wal-Mart needs to realize that improving its public image and its business reputation demands they stop ignoring the fact that the American people care about values, not just value.”
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Do you think if Wal-Mart comes to India with Strategic Relationship with Bharthi will do Good Business ?, I think it will do so because indian people are obsessed with cheap products but not best sustainable product thats why Nokia Sold Millions of 1100 Handset within short period of time in india but soon indian mindset will change, i hope. I think its better to buy products from Vertical Shops rather than Horizontal[retail] Outlets.
