Internationalisation of Retail

By Group 4
 Concept of Internationalisation
Difference in political boundaries of trade
Difference in currency of trade
Different regulatory, political and economic scenario
Difference in culture and structure in retail

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 Tread gold’s typology
This group is distinguished by the retention of high
control in the international market and a limited
international market presence
The companies in this cluster operate in the markets
which are either culturally or geographically proximate
Emboldened Internationalists
Aggressive Internationalists
World Powers

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 The electric Paradigm
To invest abroad a retailer must be possess some
specific advantage (at different cost than comparing
firm)
It either derived from the specific privileged
possession of specific intangible assets
Or from the common governance of interrelated
activities

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 Determining The Market of Entry
Classical approach to the analysis of international
expansion in retiling.
Push factor: Domestic market limited
Pull factor: Particular foreign country attractive
GRDI 2008

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 Factors Affecting Retailer's Choice of Market
Proximity to the Domestic Market
Similarity in Culture
The Size of the Market
The Laws and the Regulations of the Land
Trade Relations between the Countries
Strength of the Local players in the Market

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 Decision Making Process
Domestic / Export
Market Expansion

Which Markets?

Which Market Entry

Strategy?

Operationalizing the
Market Strategy

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 Models to enter Foreign Market
Supply of goods
Franchising
Joint Ventures
Acquisition of stake in existing retailers
Organic Growth

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 FRESH AND EASY
It is a company of Tesco, UK’s largest retailer
They had spent time in homes of American consumers,
learning their cooking and shopping habits
 The stores are smaller than typical supermarkets, with
easy to shop aisles to offer a faster, easier shopping
experience

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 They are offering selected range of national brand
products at affordable price
Private label Fresh and Easy products contain no
artificial colours or flavours
Produce is packed, date coded and delivered daily
US has been a graveyard of other British retailers

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 Retail in Asia
Singapore
Hong Kong
Japan

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 Singapore
Considered to be shopper’s haven.
It has a mature retail market – rents are stable-
infrstructure attracts many foreign retailers.
The URS- urban renewal authority- instrumental in
retail development.
Also-development of planned shopping centres.
Well developed infrastructure- key role.
Example- NTUC Fair co-operative , cold storage
Robinson, Robinson Group & Takshimaya Singapore
are key retailers.

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 Hong Kong
Over years Hong Kong has evolved from the street
side stores and wet markets and a handful of traditional
department stores, to a retail destination.

Since 70s – continuous expansion of the transport

infrastructure across the island and the development of
new towns by both the public and private sectors, has
led to the growth of retail in the country.

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 Japan
Asia’s richest market.
Highly fragmented- majority—small businesses.

700 million stores per million in Japan

As compared to 3 stores—India.

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 Convenience store format in vogue.
Out of 93K service stores, 50% are of convenience
store format.
Among Japanese retailers, convenience stores are the
forerunners in trying to integrate e-commerce into their
business strategies.

Japan—36K convenience stores

Seven eleven has 8K

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 Convenience store – first- introduced point of scale
system to analyse sales trends and encourage
manufacturers to develop new products, stimulating
consumer demand.
Slow moving merchandise taken off the shelves-as
little as 1 week.
Also offer services as the collection of public utility
payments
Also provide, ticket reservation services.
They have become important community centres.

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 Laws
Large-scale Retail store law
Anti monopoly law

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 Thank You…

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