International is at i On

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By Group 4

Internationalisation of Retail


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Concept of Internationalisation

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y Difference in political boundaries of trade

y Difference in currency of trade

y Different regulatory, political and economic scenario

y Difference in culture and structure in retail


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Tread golds typology


y This group is distinguished by the retention of high control in the

international market and a limited international market presence

y The companies in this cluster operate in the markets which are

either culturally or geographically proximatey Emboldened Internationalists

y Aggressive Internationalists

y World Powers


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The electric Paradigm


y To invest abroad a retailer must be possess some specific

advantage (at different cost than comparing firm)

y It either derived from the specific privileged possession of

specific intangible assetsy Or from the common governance of interrelated activities


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DeterminingThe Market of Entry


y Classical approach to the analysis of international expansion

in retiling.

yPush factor:Domestic market limited

y Pull factor: Particular foreign country attractive

y GRDI 2008


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Factors Affecting Retailer's Choice of

Market


y Proximity to the Domestic Market

y Similarity in Culture

y The Size of the Market

y The Laws and the Regulations of the Landy Trade Relations between the Countries

y Strength of the Local players in the Market


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Decision Making Process


Domestic / ExportMarket Expansion

Which Markets?

Which Market EntryStrategy?

Operationalizing theMarket Strategy


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Models to enter Foreign Market


y Supply of goods

y Franchising

y Joint Ventures

y Acquisition of stake in existing retailersy Organic Growth


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FRESH AND EASY


y It is a company ofTesco, UKs largest retailer

y They had spent time in homes of American consumers,

learning their cooking and shopping habits

yThe stores are smaller than typical supermarkets, with easyto shop aisles to offer a faster, easier shopping experience


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y They are offering selected range of national brand products at

affordable price

y Private label Fresh and Easy products contain no artificial

colours or flavoursy Produce is packed, date coded and delivered daily

y US has been a graveyard of other British retailers


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Retail in Asia

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y Singapore

y Hong Kong

y Japan


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Singapore

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y Considered to be shoppers haven.

y It has a mature retail market rents are stable- infrstructure

attracts many foreign retailers.

yThe URS- urban renewal authority- instrumental in retaildevelopment.

y Also-development of planned shopping centres.

y Well developed infrastructure- key role.

y Example- NTUC Fair co-operative , cold storage Robinson,Robinson Group &Takshimaya Singapore are key retailers.


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Hong Kong

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y Over years Hong Kong has evolved from the street side

stores and wet markets and a handful of traditional

department stores, to a retail destination.

y Since 70s continuous expansion of the transport

infrastructure across the island and the development of new

towns by both the public and private sectors, has led to the

growth of retail in the country.


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Japan

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y Asias richest market.

y Highly fragmented- majoritysmall businesses.

y 700 million stores per million in Japany As compared to 3 storesIndia.


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y Convenience store format in vogue.

y Out of 93K service stores, 50% are of convenience store

format.

y

Among Japanese retailers, convenience stores are theforerunners in trying to integrate e-commerce into their

business strategies.

y Japan36K convenience storesy Seven eleven has 8K


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y Convenience store first- introduced POINT OF SCALE

system to analyse sales trends and encourage manufacturers

to develop new products, stimulating consumer demand.

y

Slow moving merchandise taken off the shelves-as little as 1week.

y Also offer services as the collection of public utility payments

y Also provide, ticket reservation services.

y They have become important community centres.


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Laws

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y Large-scale Retail store law

y Anti monopoly law


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Thank You

Documents

International is at i On