International Retail Research Articles

Financial Analysis of China Duty-Free Group under the Framework of Harvard Analysis

Due to the COVID-19 in 2019-2022, global resident home quarantine, the economic downturn has led to lower household consumption levels than those before the epidemic, but with the economic and political policy and regulation and the availability of vaccines. Global COVID-19 is essentially over, at this time, the tourism retail industry is the main driver of economic recovery. In the tourism retail industry, China's duty-free industry is also a giant in the international retail industry. China Duty-Free Group has industry advantages, this article is based on the financial situation of China Duty-Free Group under the framework of Harvard analysis. Through the Oriental Fortune network, The National Bureau of Statistics of China, The China Immigration Bureau, statistic Data analysis on the China Duty-Free Group's environment and financial situation to analyze the development status and prospects of China Duty-Free Group, Conclusion for China Duty-Free Group after COVID-19 and acquisitions this year, the financial indicators in the capital increase have decreased. But this does not affect the dominant position of China Duty-Free Group in the future development, suggestions that China Duty-Free Group should hold the first position in China's duty-free industry in China's future development, from the Asian market to the international market in the global duty-free industry, make the full use of assets to expand their market share in the global tax-free industry.

Price transparency in international retailing on digital platforms

PurposeIn the digital era, price transparency—the practice of disclosing cost breakdowns in product manufacturing—has become present on digital platforms. Although its benefits are well-documented and consumers should theoretically desire costless and relevant information for informed decision-making, this paper proposes that consumers may resist overly transparent pricing, particularly when it pertains to premium-priced (vs regular-priced) products from countries with high equity.Design/methodology/approachOur research comprises three experimental studies utilizing both student and representative online Prolific samples, covering various products and countries with different equity levels. Initially, a pilot study identifies an interpersonal should-want conflict induced by price transparency when purchasing premium-priced products, leading to information avoidance. Subsequent studies further explore this phenomenon by examining the moderating role of country equity and the mediating role of price unfairness perceptions.FindingsPrice transparency can backfire when purchasing premium-priced products due to the want-should conflict among consumers—the desire to receive disclosure of cost breakdowns versus the inclination not to view it. This conflict results in increased resistance to receiving transparent price information and decreased brand attitudes and purchase intentions, especially for products originating from high-equity countries. Heightened perceptions of price unfairness explain these dynamics.Research limitations/implicationsThe study primarily relies on experimental designs with limited sample sizes. To enhance the generalizability of the findings, incorporating large-scale real market data across diverse domains and countries would be beneficial.Originality/valueGrounded in the should-want conflict and information avoidance theories, this paper uniquely explores the adverse effects of price transparency on digital platforms. We extend this by demonstrating that this conflict is influenced by country equity, where the perceived value added by the association of a product with a given country name affects whether consumers experience the conflict. Our investigation of perceived price unfairness further deepens our understanding of the nuanced effects of price transparency.

Spatio-temporal Spread of Disruptions in Interconnected Supply Networks

Abstract. The article investigates the spatio-temporal propagation of disruption effects in supply networks using shipment data from an international retailer during the year of 2021, marked by various disruptions in the global shipping industry. Events such as the COVID-19 pandemic and the blockage of the Suez Canal caused significant disruptions, including congestion and temporary shutdowns of ports. The network effect of such disruptions is measured as network connectivity using node strength in a weighted graph. Analysis of the data reveals a decrease in mean traveling speed and an unexpected decrease in speed variation following the Suez Canal blockage. The impact of the typhoon in China, while notable, was less significant than that of port closures due to COVID-19, likely due to its shorter duration. Evaluation of the spatio-temporal spread indicates, that port shutdowns due to COVID affected some routes from Asia to Europe and Australia, while others remained unaffected, potentially due to company-specific factors or differing supply patterns in various destinations. Future research aims to extend the analysis to include hinterland transportation to distribution centers and stores, where clearer spatio-temporal patterns may emerge, potentially confirmed through tests for spatio-temporal autocorrelation.

How e-commerce can boost China’s high-quality agricultural exports

IntroductionExport quality improvement is a crucial path for a country or region to climb up the advanced division of labor in the global value chain. For developing countries that have long been at the lower end of the global value chain division of labor, the dominance of agricultural trade is often controlled by international retailers, leading to higher costs of agricultural trade and hindering the upgrading of the quality of agricultural exports. As a traditional agricultural exporting country, China still needs a competitive advantage despite the large scale of its agricultural exports. Currently, e-commerce can provide buyers and sellers with comprehensive transaction information and technical support, allowing them to realize rational allocation of resources and export upgrading. Therefore, studying how e-commerce can promote the quality upgrade of agricultural exports is crucial for China to build a trade power.MethodsThis paper clarifies the mechanism of e-commerce’s theoretical impact on the quality of agricultural exports and then empirically tests it using a high-dimensional fixed-effects model with Chinese customs data from 2000 to 2020 as a sample.ResultsThe results show that e-commerce significantly promotes the quality of agricultural exports in all regions of China, and this conclusion still holds after various robustness tests; the heterogeneity test shows that e-commerce fosters the quality of agricultural exports in eastern China, densely populated regions, and economically underdeveloped regions, especially in the case of heterogeneous products; the mechanism analysis confirms that e-commerce promotes the quality of agricultural exports mainly through the optimization of the agricultural industry chain and supply chain, and the enhancement of the level of servicing. Mechanism analysis confirms that e-commerce improves agricultural export quality mainly through optimizing the agricultural industry chain and supply chain, improving the level of servitization, and docking the demand information of the consumer market, etc. Expanded analysis shows that constructing cross-border e-commerce platforms also significantly improves the quality of micro enterprises’ agricultural exports. This paper enriches the research on e-commerce and agricultural trade.DiscussionThis paper provides an essential reference for constructing a robust agricultural trade country and developing high-quality agriculture. Despite encompassing data up to 2020, in the context of today’s global economic volatility directly affecting agricultural trade, future investigations will broaden the scope to delve deeper into how e-commerce can help countries cope with global economic uncertainty.

The Interrelationship between Culture and Capital Structure: Evidence from International Retailers

The present study investigates the influence of cultural factors in 2022 on the capital structure of global retailers. There are sixteen retailers from eight countries in the sample. In recent times, numerous academicians have taken an interest in examining the capital structure and business model of retailers, owing to their swift and consistent growth. However, the fact that the majority of research originates from the retailers’ host country gives rise to debate regarding the applicability of the capital structure of said retailers to countries with distinct cultural environments. Consequently, academics have begun to investigate whether the capital structure of multinational retailers is impacted by the diversity of national cultures.

Navigating New Markets: Uniqlo's Strategic Success in Canada

In a market characterized by fierce competition and diverse consumer preferences, the Japanese fast-fashion giant Uniqlo's strategic foray into the Canadian market is a significant move. Uniqlo's approach provides a compelling case study in international retail strategy. In this paper, the author scrutinizes various aspects of Uniqlos market entry from strategic marketing and consumer experience to business ethics. This study aims to uncover the intricacies of adapting a global brand to a local context, focusing on how Uniqlo navigated the Canadian retail environment's unique challenges. This involves analysis of consumer behavior patterns, market trends, and competitive dynamics to understand the factors behind Uniqlos performance in the Canadian market. Drawing from a range of sources, including industry reports, academic articles, and market analyses, the purpose of this research is to offer valuable insights into the complexities of global expansion and the nuanced strategies that drive success in new, diverse markets like Canada.

Localised multiple channel distribution strategies of luxury fashion retailers – evidence from China

PurposeThis empirical study aims to examine luxury fashion retailers' localised multiple channel distribution strategies in China.Design/methodology/approachThrough case studies of 15 participating retailers, qualitative data were collected from 33 semi-structured interviews.FindingsStrong impacts of internationalisation strategies, distribution strategies and channel length towards multiple channel retailing are revealed. Multi-channel retailing is widely employed by firms who have entered China and further developed their businesses through local partnerships and adopted a selective distribution strategy via relatively longer channels. Omni-channel retailing is only suitable for the few retailers using an exclusive distribution strategy through direct marketing and wholly owned customer relationship management. As a dynamic transformation from multi- to omni-channel retailing, cross-channel retailing is adopted by those who are withdrawing from local partnerships and shifting to wholly owned expansions and operations in host markets.Research limitations/implicationsThe results are potentially challenged by relatively small sample size.Practical implicationsPractitioners are suggested to adapt multiple channel retailing to their international expansion strategies, distribution strategies and channel length in the host markets.Originality/valueThis paper contributes to the literature in both multiple channel retailing and international retailing by offering insights into the motives, development patterns and suitability of multiple channel retailing in the international retail marketing context.

EXPLORATORY ANALYSIS WITH ASSOCIATION RULE MINING ALGORITHMS IN THE RETAIL INDUSTRY

Every year the retail sector expands quickly. These industries are becoming more competitive and difficult to operate in due to their expansion. Changing consumer buying habits, a decline in people's spending capacity and an increase in international retailers are a few of the difficulties that must be overcome. In the context of mining frequent item sets, many methods have been proposed to push various kinds of limitations inside the most well-known algorithms. This study presents an exploratory analysis for retail stores that uses market basket analysis as one of the data mining techniques to identify frequent patterns in customer purchases. The proposed method is based on comparing two algorithms: Apriori and Frequent Pattern Growth (FP- Growth). The study used a retail store dataset consisting of 522,064 rows and 7 variables. Data pre-processing was performed to clean and encode the data to be used in the model. The dataset limitation involves 25% null values in the ID column. To address this, missing customer IDs are filled with the last valid ID, assuming repeated purchases. The FP-Growth algorithm was found to be faster and more effective than the Apriori algorithm in extracting frequent item sets and generating association rules. The retail industry based on these frequent item sets is expected to increase sales by recommending highly associated items to customers.

International retail buying groups and consumer prices

The aim of the research described in this paper is to investigate the effect of international retail buying groups on consumer prices. The study focuses on EDEKA, the leading grocery retailer in Germany, and its membership in AgeCore, the largest European international retail buying group. The empirical analysis is based on an extensive EDEKA scanner dataset, including over 6 million observations of monthly consumer prices for 138,000 stock-keeping units (SKUs) across 20 food categories, over a six-year period. The analysis shows that EDEKA’s membership in AgeCore led to reduced prices for its customers. These findings are consistent with recent studies on the influence of retail buying groups on consumer prices and contribute to an increasing body of evidence that international retail buying groups reduce consumer prices. The paper shows that international buying groups are a force for the good, as they contribute to reduce consumer prices while simultaneously offering a cost-efficient mechanism for retailers to create scale to obtain competitive buying conditions.

Antecedents and consequences of physical environment design in international retail stores

PurposeThe purpose of this paper is to examine the effects of physical environment design (PED) and its antecedents on consumers’ emotional well-being (EWB). Drawing on place identity and emotional theories, the study aims to provide a new perspective to retail store experiences.Design/methodology/approachA survey of 800 respondents was conducted in London, out of which 764 responses were constructively used. The data was collected from international retail outlets, and structural equation modelling was used to analyse the data.FindingsThe empirical results show that PED has a positive effect on consumers’ EWB. Among the antecedents, visual identity does not have any significant effect on PED and EWB. In contrast, communication had a significant effect on PED but did not have any effect on EWB, and further, cultural heritage had a positive effect on both PED and EWB. Further, moderator analysis identifies the boundary conditions under which specific theories hold.Practical implicationsThe value of this paper lies in its potential to be used for creating the perfect design planning in retail stores. Significant implications for managers and researchers are highlighted.Originality/valueThis paper presents an innovative approach to develop the principles of retail store’s PED to support the EWB of consumers.

The Effect of Foreign Divestment on Subsequent Firm Performance: The Moderating Role of Spatial and Temporal Dispersion of Prior Divestment Experience

AbstractPrevious research has stressed the importance of the relationship between foreign divestment and subsequent firm performance. Yet, controversy remains, as some authors suggest that foreign divestment has a positive effect on firm performance, and others propose that foreign divestment has negative performance effects. To help reconcile this controversy, we first explicate existing arguments and argue that in the context of retail (de‐)internationalisation, foreign divestment will have a predominantly negative effect on retailers’ financial performance. We then draw on organisational learning theory to argue that this negative performance effect of foreign divestment is contingent on (a) the spatial dispersion of previously divested foreign operations (i.e. the extent of geographical diversity of the foreign divestments the multinational enterprise [MNE] has conducted over a specified period of time), and (b) the temporal dispersion of previously divested foreign operations (i.e. the time between prior divestment episodes). Drawing on a panel of some of the largest retail MNEs over the 20‐year period 1997–2016, we find that foreign divestment has a negative effect on retailers’ subsequent performance. Our results also indicate that the negative performance effect of foreign divestment is effectively mitigated by retailers’ prior divestment experience in spatially diverse and temporally dispersed settings.

Walmart Hanabi: Igniting Sparks in the Japanese Retail Sky

This research paper explores a hypothetical scenario wherein Walmart, the global retail giant, embarks on a strategic entry into the Japanese retail market. Building on Walmart's history of international expansion, this study examines the potential challenges and opportunities the company would encounter as it endeavors to establish a significant presence in Japan. Walmart's journey into the Japanese retail landscape is contextualized within the company's overarching global expansion strategy. From its roots in Bentonville, Arkansas, Walmart has evolved into a symbol of American retail prowess, expanding its footprint into various international markets. This paper imagines the next frontier for Walmart—Japan—a market renowned for its unique blend of traditional and modern retail experiences. The Japanese retail sector, dominated by local giants such as Aeon and Seven & I Holdings, is characterized by a discerning consumer base with a penchant for high-quality products and exceptional service. Walmart's potential entry into this market necessitates a careful examination of cultural nuances, consumer preferences, and regulatory intricacies. The research methodology employs a comprehensive approach, combining primary and secondary research methods, including case studies, industry reports, and interviews. This robust methodology aims to provide a thorough understanding of the multifaceted challenges and opportunities that Walmart would face in this hypothetical scenario. Key areas of exploration include Walmart's adaptation to Japanese consumer culture, strategic partnerships and alliances with local businesses, integration of e-commerce and technology, and compliance with Japanese regulations. The paper delves into the potential impact on Walmart's global strategy and the implications for the broader retail landscape. While this scenario is speculative, it offers a valuable lens through which to analyze the strategic decisions and adaptations required for successful international expansion. The research findings contribute insights that can be applied to the broader discourse on global retail strategies, providing a foundation for future discussions on the dynamic interplay between international retail giants and diverse markets.

Domestic retailing, supply chain management, and the rise of fresh food supermarkets in China

This study investigates the emergence of fresh food supermarkets and explores domestic retailers’ fresh food supply chain management in China. The study explores two aspects of supply chain management: procurement and logistics. In line with prior research, the results suggest that domestic retailers’ continuous dominance over international retailers stems from their development of supply chain management. This study demonstrates that endogenous creativity fostered the emergence of fresh food supermarkets. Additionally, it underscores the importance of focusing beyond the transplantation route and Western impact when studying supermarkets in less developed countries.

Sustainable supply chain practices and blockchain technology in garment industry: an empirical study on sustainability aspect

PurposeThe desire of international retail brands to implement sustainable supply chain practices in the fashion value chain and improve suppliers' sustainability efforts; this research paper elucidates the relationship between blockchain technology and sustainability to impact apparel firms' triple bottom line.Design/methodology/approachFor studying the impact of sustainable supply chain practices on the triple bottom line, a survey questionnaire was chosen and sent out to 500 garment companies simultaneously, of which 371 responded. The data collected is cross-sectional. The questionnaire survey was developed keeping in mind a few demographic elements such as experience, age and qualification to generalize the findings. For analysis, SmartPLS is used to run model structuring and regression analysis.FindingsTest runs on model structure confirm the instrument's validity and reliability. Bootstrapping on the theoretical model to test developed hypotheses suggests that supply chain sustainability practices positively affect social, environmental and economic performance in a direct relationship. Further, indirect relation testing conducted to test blockchain technology's moderation influences only the constructs' relations.Research limitations/implicationsThe clubbing of sustainable supply chain practices and blockchain technology is a novel idea in the apparel industry; however, there are more constructs in the context of practice-based theory and supply chain which impact firm performance. Also, the research limits itself from discussing IT infrastructure and smart contract types that impact the technology's performance.Practical implicationsThe study provides a framework for interpreting the synergetic influence of SSCP on firm social, environmental and economic performances, which is demanded both by consumers and regulators in an industry. The results suggest that managers sustainably design the production ecosystem, thus eliminating any discrepancy or slackness in the complete chain. Usually, suppliers are ignored, which are precursors in implementing SSCP.Originality/valueThe paper studies sustainability problems through ecological modernization theory and practical-based theory giving a unique perspective on the issue faced by the apparel industry and combining sustainable supply chain practices and blockchain.

Budgetary impact of new label indications after initial drug registration in Brazil: A case study of pembrolizumab and trastuzumab deruxtecan

The pharmaceutical landscape has undergone a transformative shift due to emerging technologies, leading to a projected value of USD 405.52 billion for the global pharmaceutical manufacturing market in 2020. Brazil, representing 2% of the global pharmaceutical market, boasts a comprehensive public health system called Sistema Único de Saúde (SUS), ensuring universal health coverage. However, the public and private health sectors in Brazil operate independently, with 23% of Brazilians possessing private health insurance plans. Regulated by the Brazilian Drug Market Regulation Chamber (CMED), which controls drug prices based on international retail prices and other factors, the pharmaceutical market in Brazil faces significant challenges in maintaining the sustainability of the Brazilian health-care system, particularly due to the high costs of cancer medications, such as pembrolizumab and trastuzumab deruxtecan. This study aims to assess the budgetary impact of expanding indications for pembrolizumab and trastuzumab deruxtecan in Brazil after their initial registration by the Brazilian Health Regulatory Agency. Utilizing epidemiological data from the National Cancer Institute (INCA) and clinical trial data, we estimated the eligible patient populations and associated costs for these medications. Trastuzumab deruxtecan’s eligible patient population increased from 383 to 23,000 across various indications, resulting in a total cost increase from USD 90.6 million to USD 5.0 billion. Similarly, pembrolizumab’s eligible patient population expanded from 1796 to 99,544 for multiple indications, causing the total cost increase from USD 121.1 million to USD 6.7 billion. The study highlights the substantial expansions in indications and patient eligibility for trastuzumab deruxtecan and pembrolizumab in Brazil, with significant budgetary implications potentially jeopardizing the health-care system’s sustainability. To ensure the long-term sustainability of health-care systems and to provide equitable access to optimal treatments, it is crucial for policymakers to monitor and adjust drug prices following their initial registration. Policymakers must be aware of these challenges and consider them in health-care policy development and decision-making processes.

Internationalization and digitalization: Their differing role on grocer and non-grocer retailer performance

This study investigates the interplay between two critical phenomena in retailing, i.e., internationalization and digitalization, while accounting for retail sector differences. On one hand, internationalization allows retailers to access a wider range of markets, and on the other, digital channel expansion enhances customer reach and convenience within international markets. More specifically, we examine the relationship between retailer internationalization and performance (I-P relationship), and how this relationship is contingent upon the idiosyncrasies of retail sectors (i.e., grocery vs. non-grocery), digitalization, and their combined effects. Building on the liability of foreignness perspective, we first argue that the I-P relationship is U-shaped, because internationalizing retailers initially incur greater costs in their international expansion owing to their unfamiliarity with foreign markets, but as their foreign presence increases, they benefit from greater market power, experience, and scale economies. Then, we contend that as grocers suffer from higher levels of liability of foreignness due to increased requirements for host country embeddedness, non-grocers benefit more from internationalization with any gains and losses further amplified by digitalization. Hypotheses are tested against a panel of the 234 largest international retailers in the world over a 21-year period (1997–2017) and findings support the conjectures.

A model of international economic integration in commercial real estate markets

Subject. This article discusses the changes in the global retail market, economic models of interaction, and integration tools in international retail real estate markets. Objectives. The article aims to analyze the development of the global retail market, trends in real estate investment, identify the main patterns of integration mechanisms of international real estate markets, as well as develop an economic model. Methods. For the study, we used the methods of scientific knowledge, induction, analysis, synthesis, and comparison. Results. The article identifies the main trends in the development of the global retail and real estate investment market, formulates the patterns of functioning of investment models of international cooperation in the construction of commercial retail real estate. The article also presents an author-developed model of integration incentives in the retail real estate and retail markets of friendly countries. Relevance. The proposed model for stimulating the retail real estate and retail markets can be applied by representatives of countries experiencing external sanctions pressure on the economy, as well as partner States to launch new ways of international economic integration, improve the investment attractiveness of retail real estate, enhance the retail development, and attract new foreign players.

Analysis of legal framework solutions to protect retail consumers

PurposeThis article analyses the existing retail and distribution legal framework in which Internet companies operate, focusing on data breaches and other issues of relevance to these companies. In order to identify who should be responsible for the largest share of improving people's quality of life, this study takes into account the perspectives of both consumers and businesses (or service provider). The author states that where there is a high probability of a security or privacy breach and the customer suffers moderate to severe damage, the burden of proof may shift to the corporation. However, the customer's obligation is conditioned by factors such as the customer's risk tolerance, the customer's losses and the efficiency of the security investment.Design/methodology/approachThe author suggests that the decentralized nature of blockchain, information sharing, immutability and smart contracting capabilities have the potential to disrupt established business models and social norms. Challenges related to trust, customs oversight and payments are discussed, as well as the process of creating the framework for electronic commerce. As part of this research, the author has taken into consideration the increasing popularity of Internet shopping.FindingsThe author demonstrates that due to the worldwide reach of the internet and the fast advancement of computer technology, the economies of the globe have grown increasingly linked. Even though e-commerce has been growing rapidly in recent years due to innovations in both technology and international retail and distribution forms, it still confronts a number of challenges.Research limitations/implicationsIn e-commerce that makes use of blockchain technology, there are significant costs associated with transferring data formats, a lack of consensus and limited emissivity in the flow of law and information. Reduced costs and associated negative externalities would be tremendously beneficial for both private enterprise and forward-thinking public policy.Practical implicationsThis paper examines the potential liability concerns that may arise in the context of electronic transactions should a breach of security or privacy occur, as the author shows from a practical standpoint. Computers, mobile devices, tablets, sensors, smart meters and even autos are just some of the many channels via which data may be sent. It is conceivable for data flows in e-commerce, cloud and the Internet of Things to follow a regular pattern. This may endanger the confidentiality or security of the data. These have evolved into a significant barrier that web stores must overcome.Originality/valueThe author argues that resolving disputes related to the processing of electronic transactions is crucial to the growth of e-commerce businesses since customer happiness is directly correlated with business success.

Retail Internationalization and the Presence in the Home Market

Retail Internationalization and the Presence in the Home Market

A STUDY ON CONSUMER BEHAVIOUR TOWARDS SHOPPING MALLS IN ANDHRA PRADESH (WITH SPECIAL REFERENCE TO VISAKHAPATNAM CITY)

Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10% of the countrys gross domestic product (GDP) and around 8% of the employment. India is the worlds fifth-largest global destination in the retail space. The sizeable middle class and nearly unexplored retail market in India are the main attractive factors for international retail behemoths seeking to move into newer markets, which will help the Indian Retail Industry, grow more quickly. The urban Indian consumers purchasing power is increasing, and branded goods in categories like apparel, cosmetics, footwear, watches, beverages, food, and even jewellery are gradually evolving into business and leisure that are well-liked by the urban Indian consumer. India has the third-highest number of e-retail shoppers (only behind China, the US). The phenomenon called shopping centre or shopping mall is rocking India - metros and now even the smaller towns are buzzing with the mall mania. Modern retail format i.e. shopping malls are characterized by professionally managed large format stores, providing goods and services that appeal to consumers, in an ambience that is conducive for shopping. The recent surge in the growth of shopping malls is changing the way people shop. Mall culture in India and especially in Andhra Pradesh has been growing with an incredible pace. Just a few years back, people had to make a choice among shopping, movies or hanging out on a holiday but thanks to our malls, all these jobs can be performed at the same time, under the same roof and that too with a wonderful experience. The possibility of shopping for clothes, shoes and grocery, while simultaneously having provision for eating and entertainment in the form of movies or video game parlors, has been a convenient experience for the consumers. This paper aims to study the key factors that influence consumer behaviour towards shopping malls. The specific objective of this paper is to study consumers buying tactic, shopping priority during shopping at mall in Chennai city. The main aim of this study is to analyze different attributes of layouts, accessibility and availability of services in malls in Visakhapatnam City and to examine the attributes offered by the shopping malls which influence the customers in Visakhapatnam.