Managing distribution networks in emerging markets. Evidence from the furniture sector

Abstract

Purpose – This paper aims to examine how three firms set up distribution networks in China and India. The authors highlight the criticalities in this process and the modifications necessary to adapt the firms’ distribution networks to the local conditions of both markets. Firms entering emerging markets (EMs) must deal with specific business and environmental conditions that can jeopardise their ability to succeed. The establishment of a proper distribution network is among the most pressing priorities for entering firms. Design/methodology/approach – The case study approach was used to analyse three European firms in the furniture sector. Findings – The results show that several adaptations of already-tested solutions were necessary to cope with the specificities of both markets. Such adaptations differently involved the three layers that form the firms’ distribution network: actors, activities and resources. Theoretical and managerial implications are derived from the results. Research limitations/implications – This paper considers only three firms, which belong to the same sector and target a similar market segment (the high-end market). Therefore, the conclusions can be generalised only under certain conditions. Originality/value – This paper contributes to the development of international marketing literature by specifically studying distribution networks in EM contexts.