Page 55 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Retail Business Environment Pavitar Parkash Singh, Lovely Professional University

Notes Unit 3: International Retailing:
Internationalization and Globalization

CONTENTS
Objectives
Introduction
3.1 Internationalization and Globalization
3.2 The Motivations for International Expansion
3.3 Understanding International Retailing
3.4 Going International: Issues to be Considered While Going International in
Retail Business
3.5 Retail Globalisation
3.6 The Internationalization Process
3.7 Franchising
3.8 Culture
3.9 Summary
3.10 Keywords
3.11 Review Questions
3.12 Further Readings

Objectives

After studying this unit, you will be able to:
 Explain the concept of Internationalization and Globalization

 Discuss the motivation for international expansion
 Explain the concept of Going international
 Elucidate the internationalization process

Introduction

To satisfy the needs of global consumers, retailers have to meet these through the products they
offer, whether these are principally food, fashion or multiple retailers. Consumers experience
different cultures when they travel for work or pleasure and they have access to the Internet,
television magazines, etc. and they demand products, which reflect these tastes. Retailers are
sourcing globally for the fashion or cosmetic or electronic gadget that is new and exciting for
their challenging consumer base. Sustainability and fair trade are issues that are coming
uppermost for retailers and they have to ensure that they are trading and sourcing ethically.
Thus, they have to have in place optimum quality management to do so. One growing market
is that of young consumers who have their own finance, are strongly influenced by celebrities
and peer-group pressure. This market sector is fast moving, brand-led, difficult to satisfy and
fickle. Consumers are increasingly aware of luxury brands, which is particularly challenging
for private or own label retailers. Own label or private label products have to be of a premium
quality and at a competitive price to attract and retail consumers. International retailers are
under pressure to identify key trends in different regions and deliver the appropriate product
mix, at the expected level of service quality to satisfy their global consumers. This entails having

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