International Retailing Presenter: Amit Kumar Roy 1014370005
International Retailing Defined² Definition:- “ All the activities involved in selling products and services to finalinternational consumers for their personal consumption.”² “Retail internationalization is the management of retail operations in market which are different from other in their regulation, economic development, social conditions, cultural environment and retail structures.”² Transferring retail operations, concept, management expertise & buying function across national borders.² Global retailing is now valued at $ 7 Trillion (Source:2011 Global Retail Report, Deloitte Touché Tohmatsu).
Growing Indian Retail SectorRetail Sector contribution to GDP sector is 8%-10%.
International Retail At Glance 3% 2% 9% 8% 38%13% 27% USA EU Japan China India Russia Others
Factors Affecting International Retailing Expansion of Retail Transfer Of Retail Operations To Concepts. Foreign Market. Internationalization Employing Advance Of Management Technology. Expertise
Issues In International Retailing Legislation & Regulation Variations In Taxation & Retail Practices International (Sales people And Retailing Cross Border Management) Shopping Variations In Retail Practices (Consumers Perspective)
Indian Vs. Global Retailing Indian Retailing Global RetailingA) Retailing Is mostly unorganized. A) Mostly Organized Retailing. B) It is concentrated around few formats. B) Large number of retail formats . C) Lag behind in use of technology. C) Advanced technology applications. D) Infrastructural Bottlenecks. D) Minimum infrastructural problems. E) Low competition market. E) Cut-‐throat competition exists. F) Lack of trained Manpower. F) Trained manpower aids retail boom.
InternationalizationConcept:- “It is the act of crossing international boundaries with business interests .”v Choices of Internationalization:- ü Self-Start Entry. ü Acquisitions & Mergers. ü Joint Ventures. ü Franchising. ü Exporting.
Reasons 4 Going International• PULL FACTORS:- are • PUSH FACTORS:- are Pro-active reasons, are Reactive reasons, are motivating forces which compulsions of domestic attract business. E.g. market like saturation of Profitability & Growth market, Unskilled prospects. manpower etc.
Process Of Internationalization Licensing A contractual agreement in which one ﬁrm provides access to some of its patents, trademarks, or technology to other ﬁrms in exchange for fee or royalty. Export via agent or distributor Firm uses export as “Vent” for its surplus production and may have no long run commitment to the international market. Export through own sales representative or sales subsidiary. Firm sets a separate export department to manage sales and production, tailoring of product design as per export market. Local Packaging and or Assembly Involving in Host country Factor market, dealing with environmental variables such as cultural attitudes, wage rate, workers expectations. Foreign Direct Investment Establishes production line in Host country with prescribed FDI norms.
Globalization² Concept:- “Integration with world economy or the process of integration of the world into one huge market.”² I.M.F Definition:- “The growing interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services and of international capital flow and also through more rapid and widespread diffusion of technology.”² The firm commits itself with several manufacturing locations around the world.
Globalization AdvantagesFree flow of technology. Increased industrialization. Development of world economies. Increased employment and income. High standards of living.
Globalization DisadvantagesHeterogeneity of problems. Reluctance of developed countries. Reluctance of developing countries. Short term gains.
Multi-national & Trans-national Retailers• Multinational Retailors:- • Transnational Retailors:- The retailer operates in The retailors develop a more than one country and world class format that is adapts its offering to fit flexible enough to adapt to that country. local markets.