STRATEGIC INTERNATIONA

L RETAIL EXPANSION

Presented By,Kunjan Mishra

MBA-IBRoll: 14

INTERNATIONAL EXPANSION – A GROWTH STRATEGY

Factors facilitating the rise of international retail trade 1. Removal of trade barriers between countries

2. The rise of consumerism

Concept of international retailing (RETAIL INTERNATIONALIZATION) More than just replicating retail stores in other countries and markets

Defined as “The management of retail operations in markets which are different from each other in their regulation, economic development, social conditions, cultural environment and retail structure.”

Typically retailers start as regional players

They develop operational efficiencies as they expand in size

Growth in size gives them financial resources

International expansion happens when retailer reaches a dominance in domestic market

Saturation in domestic market is also a reason for retailer to look at international expansion

International Expansion Framework

Decision on entering a new market Confidence of having a sound understanding of that market

Understanding of the cultural and buying habits of the local population

Ability to use technology, systems and processes available in that market

Understanding of the expected growth rates, density of population, income levels

Expansion Methods

2015 Global Retail Development Index