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By Group 4
Internationalisation of Retail
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Concept of Internationalisation
PROTONbusiness school2
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
PROTONbusiness school3
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
PROTONbusiness school4
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
PROTONbusiness school5
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
PROTONbusiness school6
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
PROTONbusiness school7
Domestic / ExportMarket Expansion
Which Markets?
Which Market EntryStrategy?
Operationalizing theMarket Strategy
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Models to enter Foreign Market
PROTONbusiness school8
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
PROTONbusiness school9
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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PROTON
business school10
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
PROTON
business school11
y Singapore
y Hong Kong
y Japan
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Singapore
PROTON
business school12
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
PROTON
business school13
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
PROTON
business school14
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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PROTON
business school15
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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PROTON
business school16
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
PROTON
business school17
y Large-scale Retail store law
y Anti monopoly law
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PROTON
business school18
Thank You