It is absurd to expect a company to enter a market without any prior market research. Nowadays, with competition constantly on the rise, it is vital that some form of data mining must be employed in order to properly appeal to consumers. A business venture without any market research is like a ferrari with no gas; sure, you will look promising. But once you start moving, you won’t get very far.
Recently, Japanese clothing store Uniqlo caught wind of Bangladesh’s transition into a major global economic force and decided this would be a perfect opportunity to expand their company. They spent six months researching the market, and asking Bangladeshi women whether they found the clothes attractive or not. With only positive feedback, they moved in immediately and began selling their clothes.
Sales were going quite well at first. However, soon after opening, the company took a huge hit in sales. This came from the fact that Uniqlo provides Americanized clothing styles, yet when you take a look at Bangladeshi women, they all wear saris and traditional clothes.
How could Uniqlo have prevented this embarrassment and saved themselves a great deal of time and resources refurbishing their store to fit the needs of the Bangladeshi lifestyle? Simple: by asking the right questions. Uniqlo blundered because they did not fully equip themselves to sell in Bangladesh.
This shows the importance of making sure that the culture of the company matches the area it is selling in.