International Retailing

Presenter-
Deepanshu
Aniket
Ashok
Abhishek
International Retailing Definition
 “ All the activities involved in selling products and
services to final international consumers for their
personal consumption.”
 “Retail internationalization is the management of
retaill market which are different from other in their
regulation, economic development, social conditions,
cultural environment and retail structures.”
 Transferring retail operations, concept, management
expertise & b ig function across national
borders.

 Global retailing is now valued at $ 7 Trillion

(Source:2011 Global R etail Report, Deloitte Touché
Tohmatsu).
Factors Affecting
International Retailing

Expansion of Retail Transfer Of Retail

OperationsTo Concepts.
ForeignMarket.

Internationalization
Of Management EmployingAdvance
Expertise Technology.
Issues In International
Retailing
Legislation
&
Regulation

Variations In
Retail Practices International Taxation & Cross
(Sales people
And Border Shopping
Management) Retailing

Variations In
Retail Practices
(Consumers
Perspective)
Indian Vs. Global
Retailing
Indian Retailing Global Retailing
 Retailing Ismostly unorganized. Mostly Organized Retailing.

 It is concentrated around few formats. Large number of retail formats .

 Lag behind in use of technology. Advanced technology

applications.

 Infrastructural Bottlenecks. Minimum infrastructural problems.

 Low competition market. Cut-throat competition exists.

 Lack oftrained Manpower. Trained manpower aids retail boom

Types of retailers
Independent Chains:
Retailers:
 Own and operate A retail chain owns
only one retail and operates multiple
outlet. retail outlets.
Types of retailers
 Franchising
Retail franchising is a form of chain
ownership in which a franchisee pays the
franchisor (parent company) fees or
royalties and agrees to run the franchise by
prescribed norms, in exchange for use of the
franchisor’s name.
Types of retailers
 Leased Departments:
Leased departments are sections in a retail store
that the owner rents to a second party.

 Cooperatives

 Retail Cooperatives:
Independent retailers banding together to counter
chain store competition.
Top 10 International Retail
Franchises
 McDonald’s
 Great Wraps
 Subway
 Kentucky Fried Chicken
 Kumon Math and Reading Centers
 Meineke Discount Muffler Shops
 TCBY Treats
 Thrifty Car Rental
 Blimpie Subs & Salads
 Mail Boxes Etc.
Retail Formats: Variations
in Different Markets
 Specialty Stores
Retailers offering a narrow product line and wide
assortment
- Virgin Records (music products)
- Mango (youth fashion)
 Specialized Markets
Markets that house stores specializing in a particular
product category
Jade market (Hong Kong)
Spice market (Istanbul)
Retail Formats: Variations
in Different Markets
 General Merchandise Discount Stores
 Sell high volumes of merchandise
 Offer limited service
 Charge lower prices
 Types:
 All-purpose: offer wide variety of merchandise and
limited depth
 Category specialists (category killers):Carry a narrow
variety of merchandise and offer a wide assortment
Retail Formats: Variations
in Different Markets
 Off-Price Retailers
 Sell brand name and designer merchandise at below
regular retail prices
 Overruns, irregular products, previous seasons’
products
 Examples:
 Factory outlet stores
 Close-out retailers (broad, inconsistent assortments)
 Single-price retailers (all products for the same price)
Retail Formats: Variations
in Different Markets
 Catalog Showrooms
 Offer high-turnover, brand name goods at discount
prices
 Internationally, however, goods sold through this venue
tend not to be brand name, but, rather, goods that have
not sold the last season through the catalog
 Department Stores
 Offer a broad variety of goods and wide assortments
 U.S. and Canada: recent substantial losses
 Europe: expansion of national chains throughout the
European Union
 Asia: on the decline
International Food
Retailers
 Conventional Supermarkets
 Self-service retailers with annual sales higher than $2
million and less than 20,000 square feet of store space
 Superstores
 Combination stores (food and drug)
 Hypermarkets – combine supermarket, discount, and
warehouse retailing
Food Retailers
 Warehouse Clubs (Wholesale Clubs)
 Require members to pay an annual fee
 Operate in low-overhead, warehouse-type facilities
 Offer limited lines of brand-name and dealer-brand
merchandise at a substantial discount
 Convenience Store
 Small residential retailers or retail chains consisting of
small neighbourhood stores
 Open long hours
 Carry limited lines of higher-turnover necessities
Non store Retailing
 Internet Retailing
 Also known as interactive home shopping or electronic
retailing
 Includes both new dot-com companies and traditional
retailers attempting additional market penetration
 Increase company diversification
 Vending Machines
 Increasingly popular
 Extent of use varies from country to country
Non store Retailing
 CatLog Retailing and Direct Mail Retailing
 Venues for selling merchandise to consumers using
catalogues and other types of direct mail
 It allows for the international expansion of retailers
Must be adapted to local market needs and practices
 Obstacles in developing countries:
 deficient telephone service
 unreliable mail service
 low income
 unavailability of credit cards
Non store Retailing
 Direct Selling
 A retailing venue whereby a salesperson, typically an
independent distributor, contacts a consumer,
demonstrates product use and benefits, takes orders and
delivers the merchandise
 Direct selling firms are most active in the growth
markets (in emerging markets, in particular)
 Television Home Shopping
 A venue for selling merchandise to consumers in their
homes using cable channels
 Examples: infomercials and direct response advertising
 Popular in North America and Europe, and becoming
increasingly popular in Asian markets
Chain of Decisions in
international expansion
Domestic/Export
Market Expansion ?

Which Markets?

Which Market
Entry Strategy?

Operationalizing the
Market Strategy?