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What Is International Retailing?

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... How To Succeed Culturally Congruent Strategy E.g. employs 22 bakers who make 4,000 baguettes a day from fresh (not frozen) dough and a wide variety of pastries ... – PowerPoint PPT presentation

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Title: What Is International Retailing?


1
What Is International Retailing?
  • All activities involved in selling products and
    services to final international consumers for
    their personal consumption

2
Great diversity in Retail Patterns
Retail Outlets Population Employees Country (000)
per Outlet per Outlet
Argentina 199.5 164 4 Australia 160.2 111 5 Canada
157.2 183 9 India 3540.0 253 NA Japan 1591.2 79 4
Malaysia 170.6 109 8 Mexico 899.3 96 2 Philippine
s 120.1 547 28 South Africa 60.4 675 7 South
Korea 730.0 60 2 U.S.A
1516.3 170
13
14-9
SOURCES International Marketing Data and
Statistics, 21st ed.
(London Euromonitor
Publications, 1997), and "Indicators of Market
Size for
115 Countries," Crossborder Monitor, August 27,
1997.
Irwin/McGraw-Hill
3
Retail Formats (General Merchandise)
(1)Specialty Stores
  • Specialty Stores (narrow product line and wide
    assortment)
  • Very popular, especially in developed countries
    independent stores often dominant

4
(2)Specialized Markets
  • Markets that contain specialty stores
    specializing in a particular product category
  • Exist worldwide in both developed and developing
    countries

5
(3)Department Stores
  • General Retailers that offer a broad variety of
    goods and wide assortments
  • U.S. Canada losing share to discounters,
    specialty stores, category killers
  • European department stores focus on home
    countries with eye towards European Union
  • Often include supermarket sections

6
(4) General Merchandise Discount Stores
  • Retailers that sell high volumes of merchandise,
    offer limited service, and charge lower prices,
    e.g. Wal-Mart, Target, Home Depot

7
Retail Formats (Food) (1) Super Stores /
Hypermarkets
  • Hypermarkets Large retailers that combine
    supermarket, discount, and warehouse retailing
    principles

8
Trends in International Retailing
  • Both U.S. European retailers expanding
    internationally
  • Top 10 Global Retailers (1999)
  • Wal-Mart (U.S.)
  • Metro AG (Germany) grocery
  • Sears Roebuck (U.S.)
  • Rewe Gruppe (Germany) grocery
  • Edeka Gruppe (Germany)
  • Aldi Gruppe (Germany) grocery
  • Dayton Hudson (U.S.)
  • Carrefour (France) grocery
  • Tenselmann Gruppe (Germany)
  • Consolidation acquisition among retailers

9
Issues in International Retailing
  • Local regulations e.g. restrictions on
    expansion of hypermarkets operating hours
  • Taxation e.g. Taxes higher in Norway than
    Denmark Consumers shop on duty free shop on
    Ferry
  • Consumer Preferences- e.g. U.S. shop less
    frequently buy in bulk Argentina prefer to
    shop in small food stores

10
Food Fight in the Aisle de France Los Angeles
Times 4/2/96
  • Huge hypermarkets (hypermarches) are squeezing
    out quaint boulangeries. The government is
    cracking down on chains, but shoppers-albeit
    guiltily-are picking convenience over culture.
  • 1,000 up 100 from 1985

11
Reasons For Change
  • Poor economy
  • Growth of two career couples

12
Resistance To Change (Ethnocentric)
  • French deeply conflicted. They sniff at crass
    commercialization in America, which they see as a
    free market run amok, and they lavish praise on
    their neighborhood stores but more than half of
    food purchased at larger supermarkets.
  • New Stiffer Law prohibiting selling anything
    below cost Sets up council to monitor compliance

13
Consequences
  • Lower priced goods
  • Profitable retailers
  • Small businesses in villages going under
  • Character of countryside and even urban center
    changing
  • Market for larger appliances

14
Brainstorm - How To Succeed
  • Culturally Congruent Strategy
  • E.g. employs 22 bakers who make 4,000 baguettes a
    day from fresh (not frozen) dough and a wide
    variety of pastries - all in ovens visible to
    shoppers.
  • Roasting chickens can be chosen right off the
    rotisserie similar to butchery
  • Helpful workers clean and skin fish while you
    wait.

15
Warehouse or Wholesale Clubs
  • Require members to pay an annual fee operate in
    low-overhead, warehouse-type facilities, offer
    limited lines of brand name and dealer groceries,
    apparel, appliances, etc. at low prices

16
Convenience Stores, Kiosks
  • Small retailers located in residential areas,
    open longer hours, carry limited lines of
    high-turnover necessities.
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