Page 90 - DMGT550_RETAIL_MANAGEMENT

Unit 5: Retailing Strategy

Notes
Did u know? Luxury goods retailers are among some of the earliest globalists, seeking to
serve a similar consumer niche in a number of cosmopolitan cities around the world. This
is exemplified by Harrods, which operated a store in Argentina in the early twentieth
century in order to meet the needs of colonial expatriates.
This is not to say that we have witnessed significant global expansion by many retailers. Even
today, it is noteworthy that many retailers remain essentially domestic operations. In addition,
many of those retailers we might perceive to be developed globalists, or indeed global operations,
receive only a minority of their turnover and profit from their operations outside the home
market.
Steps in International Retailing

1. Financial Investment/Cross Border Shopping
2. Transfer of Know-how
3. Internationalisation of Sourcing
4. Internationalisation of Retail Operations
There are a range of methods that can be adopted in order to facilitate international sourcing,
and these include indirect sourcing from foreign markets through visits to international trade
shows, wholesalers and agents, and through direct means, achieved by setting up international
buying offices within the key-sourcing countries. These international buying offices are
established in order to recruit suppliers, oversee production and manage product supply and
availability. In addition, international sourcing can be achieved through the establishment of
international buying groups and networks, which function to link manufacturers, wholesalers,
agents and retailers across national boundaries.
Issues to be considered while going international in retail business:

1. Logistics and supply chain management
2. Service quality across international boundaries
3. Electronic Commerce and E-Retailing/E-tailing
4. Design
5. Ethical aspects of retail business

6. Luxury brands
7. Young potential consumers
8. Global trends

Retailing is predominantly a domestic market activity. The total business of the vast majority of
retailers is done within one particular country and in many cases, within one specific region or
district. Consequently, when compared to other sectors, the proportion of foreign assets to total
assets within retailing is low as such it has been noted that international retailing is still a
minority activity for the majority of retailers.

Task Name a few Indian retailers that have expanded to foreign shores.

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