← Home
Risks
1. Reputation and Image: Walmart’s reputation and image in China has suffered due to its quality and safety scandals. This can lead to lower customer confidence and, in turn, decreased sales and income.
2. Labor Practices: Walmart has encountered criticism for its management and labor practices in China. In addition, it has encountered allegations of unfair hiring practices and of failing to adequately enforce safety standards which can come at a great cost to the company and its shareholders.
3. Cultural Challenges: Walmart has faced greater difficulty in winning over local customers in China due to cultural differences. Consumers may be less likely to purchase unfamiliar products, and could be mistrusting of Walmart’s corporate practices and store policies.
4. Competition: Walmart has faced increasing competition from other retailers such as Alibaba and JD.com, who offer a larger selection of products and better online experiences. This intensifying competition could put Walmart at a disadvantage in terms of market share.