The Home Depot failed in its expansion into China between 2006-2012. It opened 12 stores but closed them all after misreading the Chinese market as more "do-it-for-me" rather than "do-it-yourself". Chinese consumers preferred stores like Ikea that provided complete project solutions. Similarly, Coca-Cola's Dasani water brand failed in Europe from inappropriate taglines like "Bottled Spunk" and questions around the source of its purified water, leading Coke to abandon the European launch. The document recommends more cultural research before expanding into new markets.

1. Home Depot Fails in China
By, Ashley Harer

2. What is The Home Depot?
• The Home Depot is an American retailer of
home improvement and construction
products and services.

3. When did stores open in China?
• Entered the Chinese market in 2006
• 12 stores in total
• All stores were closed by 2012

4. Why did it not work?
• Home Depot conceded that it misread the
coutry’s appetite for do-it-yourself products.
“The market trend says this is more of a do-itfor-me culture,” a Home Depot spokeswoman
said of China. –according to the Wall Street
Journal
• People connected more with stores like Ikea
where everything you need for a project is all
together

5. My Recommendation
•
•
•
•
•
More research
Interview locals
Understand the culture
Change layout of stores to be more helpful
In-store examples of easy ways to accomplish
projects

6. Dasani Fails in Europe

7. What is Dasani
• Coca Cola’s bottled
water brand

8. Why did it not work?
• Taglines like
“Bottled Spunk”
and “Can’t live
without spunk”
• Meant to symbolize
youth in US, totally
different meaning
in UK

9. What else?
• UK consumers had problem
with Dasani coming from
‘pure’ sources and not from
natural mineral or spring
sources
• The Food Standards Agency
began investigation
• Coca-Cola pulled all 500,000
bottles off shelf and
abandoned European launch

10. My Recommendation
• Take into account what similar successful
products are doing
• Research more for a more appropriate tagline
• Get your water from natural mineral or spring
sources