2. International Retailing Defined
² Definition:-
“ All the activities involved in selling products and services to final
international 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).
6. International Retail At Glance
3% 2% 9%
8% 38%
13%
27%
USA EU Japan China
India Russia Others
7. Factors Affecting International Retailing
Expansion of Retail
Transfer Of Retail
Operations To
Concepts.
Foreign Market.
Internationalization
Employing Advance
Of Management
Technology.
Expertise
8. 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)
9. Indian Vs. Global Retailing
Indian Retailing Global Retailing
A)
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.
10. Internationalization
Concept:-
“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.
11. 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.
12. 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.
13. Globalization
² 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.
14. Globalization Advantages
Free flow of technology.
Increased industrialization.
Development of world economies.
Increased employment and income.
High standards of living.
16. 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.
