CHAPTER 4 THE INTERNATIONALISATION OF RETAIL

TMH

Swapna Pradhan

Retailing Management 3ed.

Learning Objectives
2

The concept of internationalisation The internationalisation of retail The motives for retailers to internationlise The causes of failure in internationalisation

TMH

Swapna Pradhan

Retailing Management 3ed.

The Concept Of Internationalisation

3

Retail Internationalisation-the process of a retailer transferring its retail operations, concept, management expertise, technology and/ or buying function across national borders Multinational Retailers-those firms that are in some way, responsive to the headquarters located outside the country, or colony, in which retail sales are made International Retail Operations-the operation, by a single firm, of shops, or other forms of retail distribution, in more than one country

TMH

Swapna Pradhan

Retailing Management 3ed.

Treadgolds Typology Of International Retailers

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Cautious Internationalists Emboldened Internationalists Aggressive Internationalists World Powers

TMH

Swapna Pradhan

Retailing Management 3ed.

Parameters of International retailing & kinds of International retailers

5

International Geographic scope One continent

Global Two or more continents Two or more cultural zones Mixed Minimal adaptation Homogeneous Markets

Transnational One or more continents Two or more cultural zones Geocentric Medium adaptation Heterogeneous Markets Integrated network

Multinational One or more continents Two or more cultural zones Polycentric Major adaptation or diverse formats Heterogeneous markets Independent units

Cultural spread

One cultural zone

Cultural orientation Marketing

Ethnocentric Expansion of home format or international alliances Domestic HQ

Management

Centralised control

TMH

Swapna Pradhan

Retailing Management 3ed.

Determining The Market Of Entry

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Proximity to the domestic market Similarity in culture The size of the market The laws and the regulations of the land Trade relations between the countries Strength of the local players in the market

TMH

Swapna Pradhan

Retailing Management 3ed.

Which Market To Enter- Retail Decisions?

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Domestic/ Export Market Expansion?

Which Markets?

Which Market Entry Strategy?

Operationalising the Market Strategy?

TMH

Swapna Pradhan

Retailing Management 3ed.

Different Modes To Enter A Foreign Market For Retail

Supply of goods Franchising Joint Ventures Acquisition of stake (major/minor) in existing retailers Organic Growth

TMH

Swapna Pradhan

Retailing Management 3ed.

Retail In Asia
9

Singapore Hong Kong Japan China Malaysia Australia Middle East All characterized by a well developed retail infrastructure

TMH

Swapna Pradhan

Retailing Management 3ed.

Reasons for failure in International Retail

10

Incomplete understanding of

the consumers constraints of local environment cultural distinctions

TMH

Swapna Pradhan

Retailing Management 3ed.