International Retail Research Articles

Parenting advantages of emerging market multinationals (EMNCs) in luxury fashion retailing

PurposeThis empirical research, adopting an international retailing perspective, aims to examine the parenting advantages offered by emerging market multinationals (EMNCs) in luxury fashion retail sector.Design/methodology/approachThe researchers adopted a qualitative case study, and the qualitative data were collected through ten semi-structured interviews with senior managers.FindingsIt is a win–win situation for the EMNCs as parent groups of Western luxury fashion brands, as the EMNCs can access critical assets including advanced brand management expertise, retailing know-how, and the services skills needed for higher income consumers. Meanwhile, the subsidiary brands benefit from a high degree of autonomy, intra-group resource utilisation, a competitive brand portfolio and most importantly economies of scales in the value chain, particularly in production. The perceived risks of EMNCs ownership include potentially restricted autonomy and the uncertainty over corporate development activities in the future, as well as the risks of diluting brand image caused by the inconsistency between country of origin and country of ownership.Research limitations/implicationsVery few EMNCs have moved into luxury fashion retailing to date, which means that the sampling frame was small. The findings were generated from China, which is perceived to be of considerable psychic distance in terms of culture and policies compared to other emerging markets that have been heavily influenced by colonialism.Practical implicationsThis paper suggests that practitioners, particularly EMNCs, support their subsidiary luxury fashion brands through parenting advantages and develop their own high-end fashion brands through internationalisation.Originality/valueThis empirical study contributes to the current international retailing literature by offering in depth insights of parenting advantages offered by EMNCs in luxury fashion retailing. It also enriches the EMNC literature, which has mainly adopted an international business scope, by extending this understanding into luxury fashion retailing.

Linking Shrimp Farmers and Food Processors

Abstract This study explores the barriers faced by white shrimp farmers in Vietnam in linking directly with food processing companies. The shrimp sector in Vietnam is still characterised by highly informal structures, weak implementation of food safety regulations and a lack of expertise among farmers to comply with international standards. The Vietnamese government anticipates modernising shrimp production and enabling farmers to achieve the quality standards of international retailers. While international food processing companies have established locations in Vietnam to serve international markets, farmers often lack the resources and expertise to comply with their requirements. The main challenges are related to infrastructure for transport and payment transfers, risk management and overcoming established production routines which are mostly based on tacit knowledge and experience. Hence, efforts are needed to improve infrastructures, establish risk management tools for farmers and promote successful cases which can act as guiding examples for adapting white shrimp production.

Sales to centre stage! Determinants of the division in strategic sales decisions within the MNE

Extant international business (IB) literature on Headquarter (HQ)-subsidiary relationships has established that where decision-making occurs, it influences a firm’s performance. Existing studies propose that the degree of autonomy in decision-making at subsidiary level is not the same for all value chain activities, paying more attention to upstream activities. This paper contributes by exploring decision-making autonomy in downstream strategic sales activities. Sales has rarely been centre stage in IB investigations and we therefore lack thorough understanding of its role and importance within the MNE decision-making processes. Conducting a mixed methods exploratory study in the fast-moving consumer goods sector in Germany, we test for antecedents and outcomes of subsidiaries’ strategic sales decision-making autonomy. Results confirm external and internal embeddedness as antecedents, and the dominant role played by the local context, but provide insights into potential risks of internal embeddedness. Results challenge existing theory inasmuch as subsidiary importance is not a significant driver. A critical implication of this finding is that, compared to upstream activities, the HQ may not have the option of mandating a subsidiary to transfer sales strategy skills and knowledge across the network. Our results show that, in an era of globalisation of sales, and internationalisation of retailers, HQ managers must pay heed to directly interacting with subsidiaries and to sharing strategic sales decision-making across the network to consolidate the MNE’s global sales strategy.

The Dynamic Capabilities of International Retailers

Dynamic capabilities are relevant in management and internationalisation strategies of companies and retailers. This paper aims to analyse retailers' dynamic capabilities to understand whether divergences emerge in the cases of international companies versus retailers operating in their own domestic market. Through the application of an analysis model, which adapts the Teece framework to the specific features of retail companies, the study investigates three clusters of dynamic capabilities and measures 22 indicators for two different types of retailers. Results highlight significant differences in the capability of sensing the external and internal environment of the enterprise and in the capability of transforming the value proposition of the company.

“Testing the water” – prior-online market entry in China

PurposeThe paper aims to investigate the new market entry strategy of the international grocery retailers Aldi Süd and Costco in China; analyzing if and how their prior-online market entry reflects a strategic response to organizational challenges in the Chinese market, which is a pioneer in the use of digital technologies and the provision of digital services.Design/methodology/approachThe article identifies major challenges faced by international grocery retailers in China and discusses these with the help of the conceptual approach of embeddedness. The paper is based on expert interviews with senior executives of the two international retailers and other retail specialists and consultants.FindingsThe prior-online market entry by Aldi Süd and Costco represents a strategic response to organizational challenges that have to be faced in an increasingly challenging and highly digitalized Chinese market. Prior-online market entry allows the two retailers to experiment with the unique and heterogeneous Chinese market and build network and territorial embeddedness to facilitate the establishment of the physical store network. Both retailers utilize online stores to build relation and network with suppliers and customers and to understand Chinese consumer preferences. Yet, the localization strategy of Aldi Süd and Costco vary greatly.Originality/valueGrocery retailers' prior-online expansion strategy has not yet been the focus of academic research. In regard to global grocery retailers, such as Aldi Süd and Costco, previous research argued that they were prepared to accept a lower expansion speed in order to expand at minimum risk and cost and mainly in countries which are regarded as having higher cultural proximity. The paper reveals the potential of the prior-online market entry strategy to change the internationalization behavior of grocery retailers. In addition, it contributes to the understanding of the evolution of market entry strategy into advanced digital economies in the coming new decade.

The thrill of a smart purchase: Does country matter?

AbstractThe purpose of this article is to investigate the relationship of Schwartz's theory of basic individual values to smart shoppers' predisposition to purchase store brands, considering the mediating role of the smart shopper self‐concept and the moderating role of the country of origin. After an initial qualitative analysis, survey data were collected from a sample of 868 shoppers in four western countries (Spain, France, Germany and the United States). Then, a series of statistical estimations was developed through structural equation modelling. The results of these sequential models showed metric equivalence, providing a basis for generating valid comparisons among the four countries. The final findings corroborate the idea that the individual's value structure has a direct and positive effect on the smart shopper self‐concept and that this effect in turn influences the shopper's attitude towards store brands. The results also show that although the dimensions of the buyers' value structures are cross‐country invariant, the set of values that best define smart shoppers differs significantly by country. Mixed results are found when the relationship between the smart shopper self‐concept and the attitude towards store brands is analysed for each individual country. These outcomes offer international retail managers guidance on how to best stimulate smart shoppers' positive responses towards store brands.

Upstream, Downstream: Diffusion and Impacts of the Universal Product Code

We study the adoption, diffusion, and impacts of the Universal Product Code (UPC) between 1975 and 1992, during the initial years of the barcode system. We find evidence of network effects in the diffusion process. Matched-sample difference-in-difference estimates show that firm size and trademark registrations increase following UPC adoption by manufacturers. Industry-level import penetration also increases with domestic UPC adoption. Our findings suggest that barcodes, scanning, and related technologies helped stimulate variety-enhancing product innovation and encourage the growth of international retail supply chains.

The Identification of the Retail Internationalization Elements Effected Upon Consumers

The paper theoretically justified most important elements having direct effect upon consumer. Purpose of research is to develop theoretical model of retail internationalization elements effect upon consumers. by analyse retail internationalization process, retailers fails and success topics, consumer expectations was used general scientific methods of research – scientific literature, comparative and systematic logical analysis. The most important participant in the process of the internationalisation of retail trade is the consumer who actually determines the success or failure of a retail trade company. The analysis of the results of the survey of Lithuanian consumers allows seven principal elements of the process of the internationalisation of retail trade which potentially have a direct effect on the consumer to be identified: the format of the store, the range of the goods, the price, the country of origin of the product, advertising, communication and the image.

Key Determinants of International Retail Success: A Case of IKEA Retail

IKEA is an internationally well-known largest furniture retailer. The purpose of this study is to study key determinants of IKEA's success. To reach the purpose of this research, we focused on the international strategy IKEA used to approach their customers and IKEA’s SWOT analysis. Besides, we also focus on how IKEA store layout influences consumer behavior. The primary data collection method was interviews conducted with IKEA customers by Google forms. This study found that IKEA’s unique management planning and marketing strategy attract customers to revisit the retail store.

Valuation of brand equity and retailer growth strategies using real options

In marketing, significant attention has been devoted to the study of drivers and outcomes of strategic flexibility drawing on real options theory. However, research that quantifies the specific value of flexibility reflected in a bundle of strategic real options is lacking. To remedy this gap, we develop a real options-based framework that takes account of brand expansion and extension options to value brand equity and retailer growth strategies. We show how to value the bundle of strategic real options associated with a flexible marketing strategic vision and how to assess the growth strategies related to the corporate brand of an international retailer. We apply our method to estimating the brand equity of Starbucks both under growth and adversity conditions. The results reveal that our method can more reliably incorporate the growth potential of the brand under uncertainty conditions. Comparisons with other brand valuation approaches are discussed. Our study helps clarify the links among management’s strategic plans, brand-based marketing strategies and share price, and allows to better monitor the impact of retailer strategic choices on long-term brand equity value.

A Study of the Internationalization–Performance Relationship in Global Retailing: The Moderating Role of Brand Standardization and Cultural Diversity

While the internationalization–performance relationship has been extensively studied in the international business literature, it has only recently begun to be systematically and empirically explored in the retailing context, albeit with mixed findings. This study extends this emerging stream of research on retail internationalization by investigating the moderating role of brand standardization, or the extent to which retailers standardize their domestic store-as-a-brand across foreign markets, using longitudinal data from global retailers. The authors demonstrate that the internationalization–performance relationship is positive and curvilinear for retailers, and it is positively moderated by brand standardization. In particular, brand standardization offers benefits at low and high levels of internationalization, which suggests a learning curve with respect to global brand management as retailers internationalize. The study also finds that cultural diversity in retailers’ foreign markets acts as a boundary condition by weakening this moderating effect of brand standardization. This research contributes to firm internationalization, standardization–adaptation, and global brand management literature streams, with implications for global retailers.

Využití samoobslužných pokladen v maloobchodě: jejich vliv na zákaznickou spokojenost a vývoj těchto technologií na českém trhu

During the last few years consumer behavior has significantly changed. Implementation of self- service technologies (SSLs) has influenced interactions between consumer and retailer. Thanks to current situation, where social contacts are being restricted, the use of SSLs is growing. Due to this trend, there is a greater need to evaluate the impact of those technology on consumer behavior. Objective of this article is to review available research on consumer satisfaction at Self-service checkout and to asses situation at the Czech retail market. Result of literature review is not explicit and shows significant potential for further research. Analyses of Czech retail market were done in cooperation with Bizerba Czech & Slovakia organization by secondary research and telephone interviews with selected retailer organizations. Research results point out that the Czech retail market is below the level of European market Self-service checkout technology implementation. Even greater gap is between international retailers and national local retail organizations where implementation of those Self-service technologies is close to zero.

Seismic hazard on West Bandung district using non-linear earthquake response analysis

West Bandung District is one of the government areas that grow rapidly in West Java. Here several infrastructures such as Highspeed Rail Development, Modern Residences, Tourist Attractions Area, and International Retail Company supply major contributions to economic development. Rapid construction in Bandung Basin caused the government to pay attention to risk factors, especially building structures. One of the natural hazards that must be considered is the presence of an active Lembang fault. Therefore, there is a need for a study that takes into account how the earthquake waves damaged the buildings. In this study, an analysis of the soil dynamics due to earthquake ground motion from bedrock was carried out. The analysis is carried out using the wave propagation method, which is a non-linear analysis of the soil response. The research was conducted at 12 points locations in West Bandung District. As the result, the location with the highest PGA surface value is in the Mekar Jaya area, while the lowest risk is found in the Cililin area. Furthermore, this study provides scientific information on seismic hazards to support government disaster risk reduction programs.

Open Collaboration Strategy of International Retailers: An Analysis of Co-Creation

Mobile coupons have significantly enhanced marketing and e-commerce. To assess the benefits of mobile coupon apps, which are unavailable with traditional coupons, we examined users’ motivations for obtaining and redeeming mobile bonus coupons from a customer value perspective. We collected coupon issue and redemption data from a mobile coupon app and used it to analyze the effects of various factors on coupon issue and redemption. Using the days of coupon issue as a control variable, we tested bonus-type and buy-one-get-one-free-type coupons separately. We applied negative binomial regression for the tests and used a standardized number of issuing days, face value, price, and brand popularity. Our findings indicate that a coupon’s functional (face value and product price) and social (brand popularity) values significantly affect mobile coupon issue and redemption. Furthermore, the effects of social value on coupon issue and redemption vary by coupon type-bonus or buy-one-get-one-free. These results can help marketing and e-commerce practitioners to take advantage of the benefits of issuing the optimal mobile coupons for the right products.

The changing marketing orientation within the business model of an international retailer – IKEA in China over 10 years

ABSTRACT The paper reports an interview-based study that considers market driving and market-driven activities within the disaggregated components of the business model. The empirical study is of IKEA in China over a 10 year period. Market orientation is considered as a position on a continuum rather than as binary positions. The components of the business model are developed from the Osterwalder and Pigneur structure. Over the study period, the balance between driven and driving orientations within components of the business model changed in multiple ways. This article’s contribution is the illustration of disaggregating the market orientations of driven or driving activities and associating these with the particular components of the business model and so studying what happens to the driven-driving balance over time. The approach has wider applicability for attempts to understand the dynamics of international retailing.

Emerging Markets and Internationalization of Retail: The Case of BRIC Countries

Abstract The main purpose of this paper is to investigate the relationship between the emerging markets and retail internationalization, with a special focus on the markets of Brazil, Russia, India and China, also known as BRIC countries. The paper relies on the fact that the emerging markets, especially the markets of BRIC countries, have recently attracted an increasing attention of the scientific and professional community, as well as international retail companies. After the economic crisis in 2008, the internationalization of retail, as a key business strategy, is changing its direction and form, in order to focus on the emerging markets. Based on the available secondary data sources considering the operations of the largest international retail companies and the attractiveness of the emerging market from 2014 to 2018, we test the hypotheses set in this research. One of the key hypotheses is that a certain number of international retail companies present on the BRIC country market is determined by its ranking on the list of the most attractive markets. We test this hypothesis by constructing a simple regression model for each country individually. Another key hypothesis is that the ranking of a BRIC country on the list of the most attractive markets is the result of various factors. We test this hypothesis using the method of descriptive statistics for each country individually. The obtained research results have economic validity and they fill a scientific niche in the research of the relationship between the attractiveness of the BRIC market and the internationalization of retail. In addition, the obtained results represent the basis for further research of this issue, given the large-scale changes caused by the global coronavirus pandemic.

Direction of luxury fashion retailers' post-entry expansion – the evidence from China

PurposeThis empirical study, from the international retailing perspective, examines the direction of retailers' further expansion after initial entry into overseas host market in the context of the luxury fashion retail market in China.Design/methodology/approachThe research adopts qualitative multiple case studies.FindingsAfter initial entry into China, luxury fashion retailers further expand their retail operations through three directional patterns: cautious, regional and countrywide expansions. The stepwise expansion from tier-1 to tier-2 and tier-3 cities remains popular; however, the importance of the tier system of Chinese cities has been weakened because tier-3 cities in affluent regions are perceived to have more potential than some tier-2 cities in less developed regions. The retailers assess a potential local market through interrelated criteria, including location and strategic importance, economic development, available store locations and staff, a high degree of urbanisation and tourism, debatable favourable policies and offers, and popularity of e- and m-commerce. There is a positive relationship between popularity of e- and m-commerce in a city and the potential of that city to run brick-and-mortar stores.Originality/valueThe paper offers an insight into the current international retailing literature by examining the direction of luxury fashion retailers' further expansion after their initial market entry. Particularly, the research considers a set of criteria which can be used to assess a potential local market, and the impact of e- and m-commerce on local market choices for brick-and-mortar stores.

International retail format transfer: A comparison study of Australian and U.S. warehouse club members

Costco successfully transferred its Warehouse Membership Club (WMC) format to Australia. This research: 1) develops a conceptual framework to examine the role of consumer perception of format-specific core attributes in shaping the hedonic shopping experience and customer loyalty; and 2) compares Australian consumers' responses to the novel WMC format with U.S. consumers' responses to the familiar, mature format. We collected survey data from Australian and U.S. Costco members after Costco's entry into Australia's retail market and we tested the proposed model with a multiple-group structural equation modelling technique. Our findings suggest that value and hedonic shopping experience contribute to consumer loyalty in both countries. However, value is perceived as more important in shaping hedonic shopping experience, but less important in building loyalty in Australia than in U.S. When transferring a retail format that is novel to host country consumers, global retailers should factor in the novelty effect and emphasize the management of core format attributes that embrace the differences and carry particular importance in building customer loyalty.

HOLISTIC MARKETING IN THE FASHION INDUSTRY OF UKRAINE

The problems of the fashion industry development in the context of the recognition of the pandemic throughout the world are identified. An empirical study of the imple­mentation of holistic marketing by national and international retail chains of the fashion industry in Ukraine, associated with medium-sized businesses, has been carried out. It has been proven that for Ukrainian consumers the most important characteristic of social responsibility in a trading company is the quality of goods and the level of service that create a business reputation. The results of the study of the impact of quarantine on the development of retail chains in the Ukrainian fashion industry are presented.

Social network analysis and domestic and international retailers: An investigation of social media networks of cosmetic brands

As brands’ use of social media to connect with customers becomes increasingly important, there is a need to continually monitor social network activities. Although numerous studies have examined consumer behaviors on social media, only a handful of studies have adopted a social network analysis approach. Considering this gap, the current study analyzed Twitter networks of two multi-brand retailers to investigate network activities. The findings from analyzing network patterns reveal that while brands are able to deliver messages through digital platforms, they may only have limited control over the communications within networks, and thus cannot govern the spread of information.