International Retailing.pptx

INTERNATIONAL RETAILING Dr. Dvs.Shilpa Associate Professor, St.Anns PG College For Women, Mallapur Some of the International Brands which come to one’s mind would be the Wal-Mart, Gucci, Ralph Lauren, Mc Donalds etc. Definition of International Retailing International retail is the operation of...

INTERNATIONAL RETAILING Dr. Dvs.Shilpa Associate Professor, St.Anns PG College For Women, Mallapur Some of the International Brands which come to one’s mind would be the Wal-Mart, Gucci, Ralph Lauren, Mc Donalds etc. Definition of International Retailing International retail is the operation of retail outlets in more than one country. Transfer of retail operations outside the home market. It involves the international transfer of retail concepts, management skills, technology and even the buying function. Why International Retailing Retailers gain Competitive advantage Increase sales Increase profits Advantage of cost savings Why International Retailing? With increase in standard of living and disposable income, people in developing countries are getting exposed to international brands. Rise of internet and multi-media has further provided impetus to the dream of people to aspire for branded consumer goods. rising awareness and aspirations of the people, the opening up of economies and foreign direct investment opportunities have fuelled the growth of international retailing business.  International Retail business consists of two groups of businesses 1. The International Multi brand grocery 1. The second group of Retailers like Wal- international retail Mart, Tesco, Metro business refers to the and Carrefour with fashion brands mainly biggest volume of in fashion, luxury sales and business. brands and personal product category of businesses. Top International retailers on Globe Total company Business Ranking Retailer Home country revenues foundations (billions) 1 Walmart USA Mass/Hyper $510.33 Amazon.co 2 USA Ecommerce $232.88 m Schwarz Discount 3 Germany $123.25 Group grocery 4 Alibaba China Ecommerce $56.15 5 Costco USA Club $149.35 Ahold Netherland 6 Grocery $74.29 Delhaize s 7 Carrefour France Mass/Hyper $89.81 Discount 8 Aldi Germany $91.90 grocery Netherland 9 IKEA Furniture $48.73 s Issues in International Retailing Legislation and Regulation Variation In Retail Practices (Govt rules regulations differ) (ex: US consumers purchase in bulk but less frequently, Japan Taxation and Cross border and Europe consumers (differ by consumer purchase purchase in small quantities very decisions by taxes) frequently) nternational company structure.  International accounting. (International aspects of accounting, Currency rates. principles and reporting practices in different countries and their classification; Choosing the right global patterns of accounting development; shipment methods. foreign currency translation; foreign exchange risk; accounting in developing countries; accounting in communist Communication difficulties and countries ) cultural differences (cross culture individuals who speak different languages, practice different religions, or are members of a Global pricing strategy. society requires a new understanding ) Universal payment methods. Challenges of International Retailing The global retailers have to be tuned as domestic specific fashion in each of the countries and get their product mix right for each of the markets. Service quality and merchandising methods too, play an important role in the brand visibility and reputation. Pricing of products is yet another challenge faced by the brands. Developing and emerging markets are highly price sensitive. Procurement and Supplier reliability as well as quality marks one of the challenges that these companies face as they happen to source materials and products from several countries. Quality and reliability as well as in time supplies and logistics is always a challenge that can make or break the business which is highly seasonal in each country. In the recent years we have seen the emergence of ethical practices playing a vital role in the procurement policies of these international companies. Thank you enjoy virtual Learning