Analysis of retail marketing

Analysis of retail marketing Retailing involves the selling of goods, services or merchandise from a fixed location (like departmental store, boutique), by mail or through the internet, in smaller lots for direct consumption by the customers. Subordinate services like delivery may be included. (Wikipedia) After studying the nature and role of retail and the global environment in which it operates, following is my research in this area: 1) Retail Internationalisation is much more than the opening of stores abroad: Retailing had always been a domestic market activity. However, an increasing number of retailers are no more confining their trading activities to the home-market (Moore and Fernie, International Retail Marketing). Fashion retailers like The Gap, H&M, Zara, Gucci, etc recognised the benefits of crossing boundaries and thus, have sought to exploit international opportunities. Retail internationalisation is an essential ingredient for the global economy. Consumers are increasingly becoming international in their outlook due to business/pleasure travelling, access to internet, television, magazines, etc and are always seeking new experiences and a global appeal while shopping. International retailing satisfies the increasingly complex and demanding needs of global consumers. As retailers are cost-driven, consideration of key activities and procedures is necessary to achieve the tag of an international retailing business that is profitable. Internationalising retailers also gain sustainable competitive advantage. Wal-Mart and Tesco enjoy cost leadership & the benefits of operational efficiency. Brand strength is well known with Starbucks. Zara and H&M achieved fashion leadership whereas category dominance is prominent with IKEA. The motivations for international expansion: According to Williams, 1991, it is important to note those factors that motivate retailers to consider international markets as a strategy for growth. Amongst the various theoretical frameworks, the â€Å"push and pull† factors proposed by Alexander (1997) have emerged as key in interpreting retailer’s motives behind expansion into foreign markets. It focuses on why retailers are ‘pulled’ towards a foreign market and/or why they are ‘pushed’ to move out of their home market. According to Alexander (1997), retail internationalisation was a reaction to the bad internal market conditions, or the desire to further exploit trade competencies and opportunities abroad due to home-market saturation. The 21st century has given rise to an elite group of trans-national grocery retailers (like Wal-Mart, Tesco, Carrefour) for whom internationalisation is a defining element of their corporate philosophy. E.g. Tesco, with 15% turnover from outside the UK & 65,000 overseas staff, declares internationalisation as one of the four defining elements of its corporate strategy. Likewise, rigorous international strategy is being pursued by the Spanish footwear brand Camper, b y recognising their brand appeal, product range and limited sector-competition. (Moore and Fernie, International Retail Marketing) To conclude, retail internationalisation is not just about opening of stores abroad. It also involves: Synchronising cultural diversity Transferring knowledge and experience Sustainability and ethical aspects of retailing Young consumers and global trends Cross-boundary service quality The need to develop & manage stores in new markets The transfer of ‘invisible’ dimensions of retail such as know-how and expertise from one market to another Cost-saving reasons Achieving market differentiation 2) Provide a critique of the various methods of market entry that are available to the international retailer: