Page 62 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Unit 3: International Retailing: Internationalization and Globalization

3. …………………………… are increasingly brand aware and want to have access to luxury Notes
products.
4. Own brands, or private labels, have to offer premium quality and a sense of uniqueness to
attract and retain consumers’ ………………………..
5. Smaller players that have powerful brand and a strong retail concept also have the ability
to globalize successfully through using a ………………….. cost and risk strategy such as
that of franchise.

3.4 Going International: Issues to be Considered While Going

International in Retail Business

Logistics and supply chain management

Service quality across international boundaries
Electronic Commerce and E-Retailing/E-tailing
Design
Ethical aspects of retail business
Luxury brands

Young potential consumers
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.

Global Retail Structures

As indicated by Davis and Finny (1988), until the mid-1970s the level of global retailing was
limited and characterized by many failures. The early companies were mostly American:
Woolworth’s in 1909 – although now not American owned; British Home Stores (now BHS) was
incorporated in 1928 by two Americans and Safeway in 1963 prior to being acquired by Argyll
(now Safeway plc). European retailers were far less ambitious, with the exception of early
moves by C&A, Boots and Marks & Spencer.

While we may talk of a global retail environment there remain fundamental differences between
national retail markets. Despite the existence of truly global retails brands, which are found
throughout the world, retail structures remain traditional in many parts of the world. Informal
retailing, such as open trading markets, characterize developing regions. Even though modern
forms of retailing are emerging in such markets, traditional retail styles remain an inherent part
of the market structure and are inescapably bound to the local culture and lifestyle.
For example, even in Singapore with its sophisticated shopping malls and whole array of global
retailers, shopping for produce at markets remains a daily way of life for many people.

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