international retail brands

7/27/2019 International Retail Brands

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International Retail Brands

Target Emerging Economies

For Driving Growth-Deepika Samtani



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



Deepika Samtani+91-9900050725

916-08-2013

international retail brands

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