Wal-Mart struggled to succeed in the Japanese market for several reasons. It failed to understand Japanese consumer preferences and traditions. In particular, Wal-Mart did not adopt the "chirashi" system of marketing partnerships between wholesalers and retailers that is common in Japan. Wal-Mart also faced strong competition from discount stores and faced criticism for its practices around employee treatment and product quality. While Wal-Mart saw potential in the large Japanese retail market, it did not properly tailor its approach to the local context.