Page 79 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Retail Business Environment

Notes  Retailers need to understand their shopping habits and cater for the needs of this cohort.
In general, consumers are increasingly brand aware and want to have access to luxury
products.
 Some factors which become motivation for international expansion can be seen as –
Saturation of the home market or strong competition, National economic recession or
limited growth in consumer spending, Inability to find any further competitive advantages
in the home market Strong economic growth or rising standards of living, Population
growth or rising standards of living, A geographical spread of trading risks, The
opportunity to innovate, in new market conditions.

3.10 Keywords

Acquisition: It is also known as a takeover and is the buying of one company (the ‘target’) by
another.
Culture: It is the sum total of learned beliefs, values and customs that serve to direct the consumer
behavior of members of a particular society.”
Demerger, Spin-off and Spin-out: These are sometimes used to indicate a situation where one
company splits into two, generating a second company separately listed on a stock exchange
Event franchising: It is the duplication of public events in other geographical areas, while
retaining the original brand (logo), mission, concept and format of the event.
Franchising: It refers to the method of practicing and using another person’s philosophy of
business.

Joint venture: Often abbreviated JV it is an entity formed between two or more parties to
undertake economic activity together.

3.11 Review Questions

1. What is international retailing? What are the factors responsible for internationalisation
of retailing?
2. What is global retail structure? How is the present structure different from the banging
structure?

3. What are the retail globalization strategies? Explain with the suitable examples.
4. What is the need of measuring retail structures? How do you measure global retail
structure?

5. What are the points to understand for International Retailing? What are the issues and
challenges concerned with it?
6. What are the critical success factors for the growth of advanced retailing formats?

7. What is International Expansion? What are the motivational factors behind international
expansion?
8. What do you mean by evolution of international retailing? Which countries have witnessed
maximum growth in retail sector and why?
9. What is culture? How does it impact on international retailing?

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