What is Global Retailing???

 It is the concept of selling products (i.e., goods

and services) across the geographical
boundaries of a country to the consumers
available in the different parts of the world.

 To attain global presence and recognition and to

capture the opportunities prevailing in the
potential overseas markets
 Key to Success in Global Retailing
 Globally sustainable competitive
advantage
– Low cost, efficient operations -
Wal-Mart, Carrefour
– Strong private label brands:
Starbucks, KFC
– Fashion Reputation - The Gap,
Zara, H&M
– Category dominance – Best Buy,
IKEA, Toys R Us
 Adaptability
 Global Culture
 Financial Resources
 Global retailing strategies
 Organic: to open up their stores in different
countries. It is a useful strategy if the potential
market is culturally close and easy to enter.
 Chain Acquisition: The organizations may
purchase an existing company which has multiple
stores in the potential market or country.
 Franchise: strategies of global retailing is
franchising the business model, brand,
procedures, copyrights, etc. and establishing the
franchise outlets in different countries.
 Joint Venture
 Challenges faced by Global retailers
 Coping Up with Changing Technology
 Language and Communication Barriers
 Consumer Empowerment: made it difficult
for the companies to generate customer loyalty.
 Cultural Complexities
 International Shipping Policies: The
overseas trading policies like licence, excise
duty, taxes and rates, import-export policies,
exchange rates, etc. act as a considerable
challenge for the companies going global.