International Retail Brands
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Transcript of International Retail Brands
7/27/2019 International Retail Brands
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International Retail Brands
Target Emerging Economies
For Driving Growth-Deepika Samtani
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Roadmap
• International Retailing
• Modes of Market Entry in International Retail Market
• Strategies in Foreign Market
• International Brands in Emerging Economies
• Why Emerging Economies for growth?
•
International Retail Market in India
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International Retailing
International Retailing –All the activities involved in selling
products and services to final international consumers for their
personal consumption.
Large international retailers start as regional players.
They develop operational efficiency as they expand in size.
Modes of market entry practised by International retailers -Non
controlling interest, setting up international stores as a part of
internal expansion, Merger or Takeover, Franchising/Licensing,
Joint Venture, Export, Acquisitions and so on.
Short-term Strategies – Non controlling test, Contract manufacturing,
Turnkey projects
Long-term Strategies – Licensing, Franchising, Joint Ventures, Acquisitions
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Strategies in Foreign Markets
Several alternative strategies exists that can be grouped together on the basis from
their origin of base -either domestic or foreign production.
Figure 1: Strategies in Foreign Markets
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International Brands in
Emerging Economies• World’s largest developing markets –particularly the BRIC and M nations –Brazil,
Russia, India, China and Mexico tempt the largest global retailers and shows no
signs of slowing down.
• These markets though having smaller retail market size appeal to international
retailers targeting a concentration of wealth and seeking to be first movers in fastgrowing and untapped markets.
• These markets continue to have impressive growth potential. Even as its tier 1
cities become saturated, international retailers are moving into tier 2 and 3 cities
to become first movers in untapped growth markets.
• The international retail companies choose to expand their operations across
foreign markets as a part of their strategic growth plans.
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Reasons for International Retailers to
Enter into Emerging Economies• High GDP growth rates
• A burgeoning middle class
• Rising consumer confidence
• Lager population and higher spending power
• Rapid urbanization
• Changes in Foreign Direct Investment (FDI) regulations
• Increased exposure to global brands
• Increase in disposable income
• Dominance and/or saturation in domestic market
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Figure 2: Some of the large international retail brands in India
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Deepika Samtani+91-9900050725
916-08-2013