Variations in different international retail market


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Variations in different international retail market

  1. 1. Variations in different marketThree main retail formats are1. General merchandise retailing2. Food retailing3. Non store retailing
  2. 2. General merchandise retailing1. Specialty stores2. Specialized markets3. Department stores4. General merchandise discount stores5. Off price retailers6. Catalog showrooms
  3. 3. Specialty StoresRetailers offering a narrow product line and wide assortment- Virgin Records (music products)- Mango (youth fashion)
  4. 4. Specialized MarketsMarkets that house stores specializingin a particular product category-Jade market (Hong Kong)-Spice market (Istanbul)
  5. 5.  Offer a broad variety of goods and wide assortments U.S. and Canada: recent substantial losses Europe: expansion of national chains throughout theEuropean Union Asia: on the declineDepartment Stores
  6. 6.  Sell high volumes of merchandise Offer limited service Charge lower prices Types:- All-purpose: offer wide variety of merchandiseand limited depth- Category specialists (category killers): carry anarrow variety of merchandise and offer a wideassortmentGeneral Merchandise DiscountStores
  7. 7.  Sell brand name and designer merchandise at belowregular retail prices Overruns, irregular products, previous seasons’products Examples:- Factory outlet stores- Close-out retailers (broad, inconsistentassortments)- Single-price retailers (all products for thesame price)Off-Price Retailers
  8. 8. Catalog Showrooms Offer high-turnover, brand name goods at discount prices
  9. 9. Food retailing1. Convenience stores2. Conventional supermarkets3. Super centers and hypermarkets4. Ware house clubs or wholesale clubs
  10. 10. Convenience Store Small residential retailers or retail chains consisting of smallneighborhood stores Open long hours Carry limited lines of higher-turnover necessities One-stop shopping
  11. 11. Conventional Supermarkets Self-service retailers with annual sales higher than $2 million andless than 20,000 square feet of store space
  12. 12. Super centres &Hyper markets Combination stores (food and drug) Hypermarkets – combine supermarket, discount, andwarehouse retailing
  13. 13. Warehouse Clubs (Wholesale Clubs) Require members to pay an annual fee Operate in low-overhead, warehouse-type facilities Offer limited lines of brand-name and dealer-brand merchandise ata substantial discount
  14. 14. Non-store retailing1. Vending Machines2. Internet Retailing3. Television Home Shopping4. Catalog Retailing and Direct Mail Retailing5. Direct Selling6. Network Marketing
  15. 15. Vending Machines Increasingly popular Extent of use varies from country to country
  16. 16. Internet Retailing Also known as interactive home shopping or electronicretailing Includes both new dot-com companies and traditionalretailers attempting additional market penetration Increase company diversification
  17. 17. Television Home Shopping A venue for selling merchandise to consumers in their homesusing cable channels Examples: infomercials and direct response advertising Popular in North America and Europe, and becomingincreasingly popular in Asian markets
  18. 18. Catalog Retailing and Direct MailRetailing Venues for selling merchandise to consumers using catalogs andother types of direct mail It allows for the international expansion of retailers Must be adapted to local market needs and practices Obstacles in developing countries:- deficient telephone service- unreliable mail service- low income- unavailability of credit cards
  19. 19. Direct Selling A retailing venue whereby a salesperson, typically anindependent distributor, contacts a consumer, demonstratesproduct use and benefits, takes orders and delivers themerchandise Direct selling firms are most active in the growth markets (inemerging markets, in particular)
  20. 20. Network Marketing• Variation on direct selling• Involves signing up sales representatives to gointo business for themselves with minimalstart-up capital and sell more"distributorships" and merchandise• Network marketing is growing rapidly,especially in emerging markets
  21. 21. Issues in International retailing• Legislation and regulation• Taxation and cross border shopping• Consumer perspective variation• Salespeople and management