Productandbrand
Criticalsuccessfactorsinthe
internationalisationofafashionretailer
StephenM.Wigley,ChristopherM.MooreandGreteBirtwistle
DivisionofMarketing,CaledonianBusinessSchool,GlasgowCaledonianUniversity,Glasgow,UK
Abstract
Purpose–Toexplorethefactorscrucialtointernationalfashionretailersuccessandevaluatehowinternationalisationcouldbecontrolledefficientlybyafirm.
Design/methodology/approach–Thestudyadoptsaqualitativeapproachintheformofcasestudiesoftwointernationalfashionretailers.Thisinvolvedstructuredinterviewswithmanagementtoexploretheirknowledgeandexperiencessupportedbysecondaryresearchsuchascompanyandmediareports.
Findings–Definesthecriticalsuccessfactorsespeciallycontingenttotheirbusinesses,emphasisingtheimportanceofbrandmanagement,productdevelopmentanddifferentiationtointernationalfashionretailers.
Researchlimitations–Anexploratorystudywhichmodelneedstestingusingquantitativemethods.
Originality/value–Understandingofhowfashionretailerssuccessfullyinternationalisewillincreasecompanyefficiency.
KeywordsFashionindustry,Retailing,Criticalsuccessfactors,Brands,InternationaltradePapertypeResearchpaper
Productandbrand–criticalsuccessfactors
531
Introduction
SinceHollander(1970)introducedthesubjectofretailinternationalisation(RI)toacademicattention,literatureonthesubjecthasproliferated.ParticularaspectsofRI(e.g.motives–Alexander(1990);marketentrymethod–Doherty(2000))andtheeffectofRIspecificretailsectors(e.g.conveniencestores–Sparks(1996);supermarkets–Wrigley(2000))havebeenconsidered.Reviewingthiswork,VidaandFairhurst(1998)identifiedsomecommonpromotersandinhibitorsofRI,whileTreadgold(1989)andWilliams(1991)usedthetraditionalbusinessmanagementliteraturetoclassifysomecriticalsuccessfactors(CSFs)relatingtointernationalretailbusinesses.
However,thisworkhasbeendisjointed,lackingaconceptualunderpinningandtheoreticalframework(AkehurstandAlexander,1996;Evansetal.,2000;Sternquist,1997).IndicativeofthishasbeenthefailuretoconnectaspectsofRIandthecontingentCSFswithspecificretailsectors.
ThisdeficiencyisaddressedbyidentifyingtheCSFsapplicabletointernationalfashionretailersandconsideringhowtheyaredistinguishablefromthosepertinenttootherinternationalretailers.Withtheseinmind,waysinwhichaninternationalfashionretailermaymanipulateitsmarketingmixinresponsetoCSFsaresuggested.Thisisillustratedwithamodelhighlightingthecontrastingstrategiesemployedbytwosuchcompanies.
InternationalJournalofRetail&
DistributionManagement
Vol.33No.7,2005
pp.531-544
qEmeraldGroupPublishingLimited
0959-0552
DOI10.1108/09590550510605596
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532
Literature
AkehurstandAlexander(1996)reviewedtheRIliteratureandidentifiedsixemergentthemes:
(1)Whatistheinternationalisationofretailing?(2)Whoaretheinternationalretailers?(3)Wheredoretailersinternationalise?(4)Whydoretailersinternationalise?(5)Howdoretailersinternationalise?
(6)Whendoesinternationalisationoccur?.Fromacommercialperspective,thelastfourquestionsareespeciallyrelevant.Forthepurposesoftheliteraturereview,allsixquestionsareconsideredincontextoffashionretailers,beforethelastfourareusedtoconstructamodelforcommercialapplicationintheconclusion.
DiversedefinitionsofRIareoftencompromisedbypoorlyexplainedterminologiesandtheinappropriateapplicationofmanufacturingtermstoaserviceenterprise(AkehurstandAlexander,1996;Alexander,1997;BrownandBurt,1992;Helfferichetal.,1996;Pellegrini,1994;Sparks,1996).FocusingonspecificfeaturesofRI,Treadgold(1989)definedinternationalretailingashaving“visible”and“invisible”dimensions.Dawson(1994)elaborated,describingthe“invisible”aspectsofRIasbeingtheinternationalsourcingofproductsandservicesandthecross-bordertransferofmanagementexpertiseintheformofmanagerialpoliciesortechnicalskills(Kacker,1988).Intheseterms,fashionretailersareprevalent“invisible”internationalretailers,manufacturingabroad(CreweandLowe,1996;Dawson,1993;MooreandBurt,2001;Stone,1987)andtransferringmanagementskills(Laulajainen,1991,1992;MooreandBurt,2001)withoutnecessarilyoperatingstores.Marketingskilltransferinthedevelopmentofinternationallyappealingbrandsiscitedascriticalinthefashionmarket(BurtandCarralero-Encinas,2000;deChernatonyetal.,1995;Mooreetal.,2000).
Authorshaveattemptedtoclassifyinternationalretailersaccordingtotheirsize,retailformatandmarketstrategy(Alexander,1997;Hollander,1970;SalmonandTordjman,1989;Treadgold,1988).However,researchhasshownthatthedefiningfeaturesofinternationalretailersarenotintheirtangiblecharacteristics;rathertheyareinthephilosophicalattitudesandcompetencies,whichdeterminethosephysicaldimensions(AlexanderandMyers,2000;Dawson,1994;DupuisandPrime,1996;Fernieetal.,2003;QuinnandDoherty,2000;VidaandFairhurst,1998).Casestudieshaveshownthatsuccessfulinternationalretailerssharecommonmanagementattitudes,decision-makingframeworksandpersonnelskillsirrespectiveoftheirsize,retailformatandproductsegment(Arnold,2002;Berryetal.,1997;Belussi,1992;Burt,1986;CollaandDupuis,2002;Fernieetal.,2003;Laulajainen,1991,1992;Treadgold,1991).Somehaveaccommodatedfashioncompaniesintotheircategorisationsofinternationalretailer(Arnold,2002;Hollander,1970;Treadgold,1988),butfewhaveclassifiedthemasauniqueentity.Mooreetal.(2000)classifiedinternationalfashionretailersasproductspecialists(narrowproductrange,clearlydefinedcustomerbase),designerretailers(internationallyrecognisedbrand,exclusivepositioning),generalmerchandiseretailers(mixoffashionandnon-fashiongoods,largeformatstores)or
generalfashionretailers(broadrangeofproducts,accessiblepricing).Theseretailersarepositionedininternationalmarketsbyvirtueofthemarketingeffortandproductoffering,whichcontributestotheiroverallbrandappeal.
Managementattitudescandecidewhereretailersexpand(Evansetal.,2000;JohansonandVahlne,1977;O’GradyandLane,1996;Treadgold,1989,1991).Theconceptofpsychicdistance,thedegreeofuncertaintyafirmhasaboutforeignmarkets,hasbeencitedascriticalindecidingthedirectionofaretailer’sinternationalexpansion(Evansetal.,2000;DupuisandPrime,1996;JohansonandVahlne,1977;JohansonandWidersheim-Paul,1975;KleinandRoth,1990;Lee,1998).However,researchhasshownthatsomeretailersovercomepsychicbarriersthankstotheirparticularlydesirableproductsandbrands(Fernieetal.,1997;Hollander,1970;Moore,1998;Treadgold,1989).SimpsonandThorpe(1996)suggestedthattheseretailers,usuallyoperatinginluxuryorspecialistmarkets,coulduseproduct,lifestyle,imageandnichedifferentialsintheirmarketingtoovercomepsychicbarriers.Severalauthorshavenotedthatthisisthecaseforfashionretailersoperatingdistinctivebrandsofferingdesirableproducts(Diamond,1991;HornandGurel,1981;Laulajainen,1992;LewisandHawksley,1990;Moore,2001).
ThedesiretobenefitfromtheexposureofexclusivebrandstoforeignmarketswasidentifiedbyHollander(1970)asaprimarymotiveforRI.Kacker(1986)describedhowretailersare“pushed”fromtheirdomesticmarketor“pulled”toaforeignmarket.Alexander(1997)compiledalistofpushandpullfactorssuggestingthatretailerswithadistinctiveretailofferorformatwouldbemorelikelytoproactivelypursueforeignopportunities(Alexander,1995,1997;Williams,1992a,b).Oftentheseretailersmayoperateinspecialisedproductareasorpossessespeciallydesirablebrands(Alexander,1990,1995;Dawson,1994:Hollander,1970;Laulajainen,1992;Williams,1992a).Laulajainen(1992)andFernieetal.(1997)statedthatluxuryretailersproactivelyexpandabroadtoderivebenefitfromexclusivebrandsorinnovativeproductsandMoore(2001)specified“thebrand”asbeingakeymotivatorforfashioninternationalisation.TreadgoldandGibson(1989)agreedthatinternationalisationisattractivetoretailersoperatinginnichemarketssuchashigh-endaccessoriesorchildren’sclothing.
DaviesandFergusson(1996)foundthatRIisaplannedandincrementalprocesscontrolledbytheretailer’scorporateambitionandexperience.However,Dawson(1993)indicatedthatthediversityoftheindustryallowedretailerstodeviatefromtheincrementalpathdependingonthestrengthoftheirretailoffer,marketingresourcesandproductrange(CannonandWillis,1981;Dawson,1993;JohansonandVahlne,1990;Reid,1984;Treadgold,1990;Turnbull,1987).Dawson(1994)indicatedthefivemarketentrymethodsavailabletoforeignretailers:internalexpansion,mergerortakeover,franchiseagreement,jointventureornon-controllinginterest.Eachofthesehasadvantagesanddisadvantages,ischosenbyaretaileronbasisofitscorporateconfidence,productportfolioandbrandimageandhasconsequentsetupcostandoperationalcontrolimplications(Burt,1993;Dawson,1993;MooreandFernie,2004;QuinnandDoherty,2000;Sparks,1996;Treadgold,1991;TreadgoldandDavies,1988).Burt(1993)indicatedthatsomeretailerspursuehigh-riskstrategiesdespitelittleinternationalisationexperience,suggestingthatfactorssuchasastrongbrandinfluencemarketentrymethod.Fashionretailersmayinternationaliseinanumberof
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ways,withSalmonandTordjman(1989)indicatingsomedifferencesbetweenthestrategiesfollowedbytwosuccessfulinternationalfashionretailers.Someauthorshaveidentifiedaglobalisedstandardisationapproachtointernationalisationasbeingcriticaltothesuccessoffashionretailers(Fernieetal.,1997;Hollander,1970;Laulajainen,1992;Moore,1998).Successhasbeenattributedtothepresentationofalluringbrandimagethroughstandardisedadvertisingimagery,retailformatandsimilarproductsusinginternationaladvertisingcampaigns(CreweandLowe,1996;Fernieetal.,1997).
Hollander(1970)indicatedthatinternationalretailersrequiredadequateresourcesandcompetitiveadvantages.Williams(1991,1992a)indicatedthataretailermustpossesssome“differentialfirmadvantages”,includingadedicationtodevelopinganattractivebrand,inordertobeinternationallysuccessful.SimpsonandThorpe’s(1996)PLINmodelsuggestedthattheseadvantagescouldincludeproduct,lifestyle,imageandnichedifferentials,illustratedbyinternationallyappealingbrandsandproductsorinnovativeretailformatsfacilitatinginternationalsuccess(Fernieetal.,1997;McGoldrickandHo,1992;SimpsonandThorpe,1996;Treadgold,1991;Whitehead,1991).Astrongbrandhasbeenidentifiedasafactorassistingtheinternationalexpansionoffashionretailersofferingdistinctiveproductsinuniqueretailenvironments(Fernieetal.,1997;Laulajainen,1991,1992;SimpsonandThorpe,1996;Treadgold,1991;Whitehead,1991).Therehasbeenlittleinvestigationintotheeffectofcorporatestructure,companycultureandmanagementleadershipwithregardtofashioninternationalisation,withonlyLaulajainen(1991)andMoore(2001)consideringthis.
Theissueofforeignmarketwithdrawalanddivestmenthasnotbeenadequatelycovered.AlexanderandQuinn(2002)notedthatunder-performanceinforeignmarketsisoftentoleratedbyinternationalretailerswhiledomesticmarketsarebuoyant,butthattheytendtowithdrawfromforeignmarketswhenfacingdifficultdomesticcircumstances.Moore(1998)notedthatinternationalfashionretailerdivestmentwasoftenpromptedbyabreakdowninfranchiserelationshipsordomesticdifficulties,implyingthatdomesticsuccesssometimesobscuredforeignmarketdifficulties(MooreandFernie,2004).
Methodology
MostRIresearchthusfarhasbeenqualitativeand,therefore,interpretivistinapproach.ThisisespeciallythecasewithinthespecialisedsubjectmatteroffashionRIresearch,wherethemainfactorsmotivatingandimpingingonthesuccessoftheprocessarepoorlydefinedand,therefore,empiricallyunfeasible.Asaresult,themajorityofresearchintothissubjecthasbeenintheformofcasestudieswithaninterpretivistorientation.Thisapproachallowsarichanddiverserangeofinformationtobecollected,witheachaspectanalysedincontextoftheenvironmentalinfluencesactingonthecompany.
Followingtheseprecedents,thisstudyadoptsaqualitative/interpretivistapproachintheformofcasestudiesoftwointernationalfashionretailers.Thisinvolvedstructuredinterviewswithinternationalfashionretailers’managementsubstantiatedbybackgroundresearchintotheircompanies’experiences.Thiswouldseteachparticipant’sinternationalisationexperienceincontextoftheirmanagerialculture,
policyframeworkandtheircompanies’corporateperformanceanddevelopment.Giventheever-changingnatureoffashionretailing,thisempatheticapproachwilldevelopabetterunderstandingofthesuccessfactorspertinenttofashionretailerinternationalisationandprovideanin-depthunderstandingofmanagementactionsanddecisionmakinginrelationtothese.
Thecasestudiesfocusontwodesignerfashionretailers.Theywerechosenfortheirsimilarity–bothmanufactureandmarketaspirationalcollectionsunderdistinctivebrandnamesinseveralnationalmarkets–andtheirdiversity–onehashadapositiveinternationalexperience,theothernegative.Byselectingtwocompaniesinsimilarfashionsegment,onecanfocusonthespecificdetailsofeachcompanyanditsproductsandbrandstoestablishhowthesehaveimpactedontheirdifferingexperiencesofinternationalisation.Forthepurposesofconfidentiality,bothcompaniesmustremainanonymousotherthantostatetheirnationality.
Interviewswereheldwithseniormanagementinbothcompanies.Thesewerestructuredtoallowtheresearchertocoverthepertinentissues,butweresufficientlyopenendedsoastoallowtheparticipantstoexpressthemselvesfreely.Thepointsarisingfromtheseinterviewswerethensubstantiatedbymediareports,companydocumentationandsubsequentinterviews.
Findingsanddiscussion
TheliteraturereviewwasstructuredsoastoprovideaframeworkenablingconsiderationofeachofthedimensionsofRI.Theresultsoftheresearcharesimilarlypresentedinthisway.
Motivesforinternationalisation
Theliteratureshowedthatretailerscouldbepulledabroadorpushedfromtheirdomesticmarket.Thiswasreflectedintheexperiencesofthetwofashionretailersconsidered.TheAmericanretailer’smarketingmanagerindicatedthatthecompanyhadbeenestablishedpartlyonthefounder’sdesiretobringstyleandvibrancytoaworldwideaudience.Hence,foreignmarketopportunitieswereidentifiedearlyinthecompany’sdevelopment.AmanagerintheBritishretailerindicatedthataneventualmoveintoforeignmarketswaspartofthecompany’soriginalbusinessplan.Accordingly,marketingeffortwasdirectedtowardspresentingthebrandashavinganinternationalprofileandthecompanyactivelysoughtinternationalopportunities.Theseopportunities,forbothcompanies,includedmostobviouslythedesiretoprofitfromdistinctiveproductsandbrands.TheAmericanretailerpresentedanaspirationallifestylerepresentingtheUSA’sdiversityandvibrancy.Complementingthiswasproductlinedistinctivefromcompetitorsindesignandattitude.Themarketingdirectorindicatedespeciallytheimportanceofproductquality;“Iftheproductisright,everythingelsefollows.Thecustomers’arehappy,theretailersarehappyandthecompanyishappy.Thatmeanshavingaproductthat’sgoodquality,fashionableandmakesthecustomerfeelspecial.”Hehighlightedtheimportance,givenhiscompany’smostrecentcorporatedevelopments,ofparticularproductsas“headliners”todriveinternationalsuccess.Hence,thecompanyhasrecentlyinvestedheavilyindesigners,productmanufacturingandbrandmanagementtomoveforward–thiswouldcreatean“organic”internationalisationstrategywherethecompanywouldcreateandfollowdemand
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indifferentmarkets.TheBritishretailerdemonstratedthevalidityofthispolicy;“Ourmarketing,productandphilosophymakeusunique.Thatmeanswehaveacompetitiveadvantagewhereverweare,whichisshownbyhowquicklywebecomeamarketleaderwhereverwego.”Creatingauniquebrandpropositioncombiningexclusivity,quirkiness,convenienceandaccessibility,thecompanyenhancedforeignmarketdemand.Beingseenasa“cool”companyhelpeditspositionespeciallyinAmerica,apositioncapitalisedonbyaparticularproduct,whichbecamestronglyassociatedwiththeretailerandpropelleditsexpansion.Accordingtothemanagement,thisparticularproduct“...representedthecompany.ItsoldloadshereandinAmericaanditgotusknowninternationallybecauseitwassoinnovative.”
Theliteratureindicatedthatretailerscouldalsobe“pushed”fromtheirhomemarketbydeterioratingdomesticconditions.TheAmericanretaileradmittedthatdomesticproblemspromptedhurriedinternationalisationbeforethecompanywasready.Asaresultofslackeningdomesticdemandintandemwithover-productionitwasforced“toplaya‘chasinggame’ofsellingstockwherevertheycould”,hencethecompanysoughtimmediatelyaccessibleforeignmarketsandsignedwholesaleandfranchiseagreementscontrarytotheirplannedstrategy.Themarketingmanagerofthecompanyagreedthatithadultimatelybeen“pushed”fromthehomemarket.TheBritishretailerindicatedthatthiswasnotthecase.ItsleadingpositionintheUKmarketpromisesdiminishingreturnsondomesticexpansion,butinternationalexpansionwasmerelythelogicalnextstepforthecompany,accordingtoitsmanagement.ThefactthatinternationalisationcommencedbeforethecompanybecamealeadingUKretailerreinforcesthissuggestion.
Whereinternationalisationisdirected
Theliteratureindicatedthatprestigiousfashionretailersofteninternationaliseintoforeignmarketsgeographicallydistantorculturallydiverseinordertoreachprofitablemarketsortocreateadesirable“international”image.Bothcasestudiesindicatethatthishasnotnecessarilybeenthecase.TheAmericanretailermadeitsproductavailablethroughwholesalinginitiallyinEuropeandtheFarEast.Themarketingmanagerindicatedthatthecompanyhadplannedtocreateagloballifestylebrandbyopeningretailoutletsin“world-classlocations”regardlessofmarketsizeanddistributionconsiderations,conformingtotheliterature’sconclusions.However,corporatecircumstancesatthetimemadethisdifficultandultimatelyinternationalisationwascompromised;“Theywentwithpartnerswhoofferedthebestdeal,becausetheyneededthebusinessandtheyneededoutletsforallthestock...thebestdealswereinplacelikeHongKong,althoughmaybelongtermthebrandmighthavebeendamagedortheyshouldhavefocussedonEurope.”Thus,internationalisationdirectionwasdecidednotbythedesiretocapturelucrativemarketsorcreateaglobalreputation;norwasitpromptedbyculturalcongruityoreasydistribution.Insteaditwasdirectedonthebasisofimmediatecommercialgain.Worse,thecompanyfailedtoappropriatelyprovidemarketinganddistributionsupport.FacedwithdifficultyinarticulatingacoherentbrandmessageinlanguagesotherthanEnglish,thecompany“...didn’tputinthemarketingsupporttogivetherightimagetothebrand...soalotofpeopledidn’tknowwhatthebrandmeant.Iftheywereawareofitasasophisticatedlifestylebrand,theshopsdidn’treflectthat.And
theygottheweakpartsofthecollectionbecausethebetterstuffstayedinAmericaorEurope.”Further,compromisedbyqualityanddeliveryissues,theinternationalisationeffortwasunderminedbynotclearlyexpressedbrandvalues,whichmighthaveovercomeforeignmarketculturalindifference,poorproductsandinappropriatelyselectedretailpartners.
TheBritishretailerfocussedoninternationaloperationsintheUSA–notgeographicallyaccessiblebutculturallyverysimilartotheUKmarket.ThemanagerofthecompanyindicatedthatanimportantfactorinthesuccessofthebrandintheUSAwasitsproduct;“Ourproductsuitedthelifestyle[inAmerica],especiallyyouthtrendsawayfromthepreppylookandpeople‘dressingdown’atworkbutstillwantingtolookstylishandprofessional.”Theretailer’sproductswerecongruentwithprevailingAmericantrendsandweresupportedbyaquirkymarketingcampaign,whichdifferentiatedthebrandfrommoreconventionalEuropeancompetitors.ThemarketingmanagerindicatedthatculturalconventionssuchassharedlanguageandunderstandingofculturaliconsfacilitatedthebrandbuildingexerciseintheUSA.ThissuccessfulformulahassubsequentlybeenfollowedinAustralia,anothergeographicallydistantbutculturallysimilarmarket.Inturn,thishasgiventhecompanyconfidenceinexpandingintocloser,butmorechallengingmarkets,suchasScandinaviaandFrance.Anintervieweesuggestedthatthesemovesweremarketing-orientated,togivethebrandaninternationalappealtosupportwiderinternationalwholesalingoperations.Thisseemstoconfirmthetheoryproposedbytheliteraturethatretailersgenerallyinternationalisefirstintoculturallysimilarmarketsthenusethatconfidencetoexpandelsewhere.However,themanagerhasnotedtheroleplayedbyproductdevelopmentandbrandpresentationinachievingsuccessnotwithstandingtheculturalcongruityoftheAmericanmarket.
Wheninternationalisationisinitiated
Theliteratureindicatedthatinorderforinternationalisationtobesuccessful,aretailermusthaveappropriateresourcesandcorporatecharacteristics.Inaddition,itmusthaveproduct,lifestyle,imageandnichedifferentialsmakinginternationalisationfeasible.
TheAmericanretailerinternationalisedmainlyduringtheeconomicallybuoyant1990s,fundedbypublicownership.However,whilethisexpansionwasinstitutedthebrand’sdomesticmarketcollapsed,leavingthecompanywithfewresourcestoimplementitproperly.Meanwhile,shareholderpressure,stockmarketexpectationsandinexperiencedmanagementpressedforquickexpansionandimmediatefiscalreturns;“Theinternationalprogrammewasforgottenbecauseittooktoolong.Theymadedealswithwhoevertheycouldtogetthemoneycomingbackquickeranddidn’tthinkhowthebrandwouldlook.”Thisledtotheproductproblemsandinappropriateretailrelationshipsdescribedabove.Becausethecompanyrushedintounsuitablemarketsandlostfocusontheproductdesignandmarketinginitiatives,whichmayhaveovercometheproblems,itfailedtodevelopthedifferentialadvantagesnecessaryforsuccessabroad.Inturn,thiswascausedbymanagementfailingtounderstandthedemandsofanimage-drivenandmarketingintensivebusiness.Hence,itdidnothavethecorporatecharacteristicsdeemedessentialbytheliteratureforasuccessfulinternationalfashionretailer.
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TheBritishretailer’sinternationalexpansionwasalsofundedbypublicsale.Itssuccesswasdirectedbyexperiencedmanagementwhoplannedtheinternationalstrategyfromthecompany’sfoundationandwereenlightenedastotheroleofmarketinginthefashionindustry.Inturn,themanagersledthecompanytotheextentthat,“...everyonefeelspartofthebrand,eventhestoreworkersfeelgoodtobepartofacoolandwell-knowncompany.Frommyperspectivethatcreatesanatmospherewherethingsareachieved,andIthinkthatcomesfromthestrengthofthebrandandhowthecompanymakeyoufeelinvolved.”Theimportanceofproductdesignsupportedbymarketinginitiativeswascriticaltothecompany’sinternationalsuccess.Whenaskedwhatdifferentiatedhiscompany,amanagerreplied:“The...‘way’ofthebrand...whichisshowninthemarketingandtheproducts.”Hence,theretailerhascreatedproduct,lifestyle,imageandnichedifferentials,enhancingitschancesofinternationalsuccess.
Howinternationalisationtakesplace
Theliteratureshowedthatretailinternationalisationcantakeseveralforms.Thisisclearlydemonstratedbybothcasestudies.TheAmericanretailerfirstinternationalisedthroughwholesalingabroad.Accordingtoarespondent,poorlycontrolledwholesalingcontributedtotheproblemsoutlinedabove–thebrandwasunderminedbyinappropriateretailersandtheproductwascompromisedbyrushedproductiontomeetmountinginternationaldemand.Plansweremadeforcompany-ownedstoreselsewhere,butwereforgotteninthecorporateclimatediscussedabove.Instead,thecompanysoughtretailpartnerstooperatestoresunderthebrandname.Again,corporatepressureforquickresultscompromisedthisstrategy,withpartnersbeingchosenonbasisoftheirwillingnesstospendasopposedtotheirexperienceorprofessionalisminoperatinganaspirationalbrand.Themanagerindicatedthatthisresultedinbrandcontrolproblems,damagingthecompany’sinternationalimage.Theseweremadeworsebythecompanyreleasingproductmanufacturinglicenses.Thesesurrenderedcontrolofvitalproductareastoagentswhosedesign,manufacturing,distributionandmarketingprocesseswerenotsubjecttothebrandholder’scontrol.Dawson(1994)indicatedthatretailersmayinternationaliseinvisibly,forinstance,intheexportofmanagementexpertise.TheAmericanretailerfailedtoaddressitspreviousmistakesbyfailingtoexportitsdomesticmarketingskills.Sincealarge-scalereorganisationthissituationhaschanged,aprocess,whichamanagertermedas“reverseinternationalisation”,therelocationofkeypersonnelfromelsewhereinthenewparentcompanytomanagementpositionsintheretailer.
TheBritishretaileralsobeganinternationalisationthroughwholesaling.Thiswasstrictlycontrolled,withretailersbeingselectedonbasisoftheirappropriatenesstothebrand,assuringthebrandofevendistributionandfittingpresentation.Allexceptoneforeignstoreareowneddirectlybythecompany,meaningthattheretailerhasfullcontroloveritsbranding,stockrange,personnelandmarketing.Licensedproductmanufactureragreementsweremadewithestablishedexpertsineachproductcategory.Aspartofthisagreement,manufacturershavetohavedesign,manufacturing,distributionandmarketingstrategiesagreedwiththebrandowner.Amanagerinterviewedstatedthatthesewerereinforcedbythecompany’sdistinctive
marketingstylebeingexportedabroad–advertisingcampaigns,visualmerchandisingschemesandpersonneltrainingareexportedabroadresultinginaconsistentandcoherentbrandmessage.
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Discussionandconclusion
Thispaperpresentstheinitialfindingsofastudyoffashionretailerinternationalisationfromwhichthefollowingobservationscanbedrawn:derivedfromtheexistentliterature(AlexanderandQuinn,2002)theexpectationwouldbethatseveredifficultiesinthedomesticmarketwouldprecipitate,ifnotnecessitateforeignmarketwithdrawal.ThiswasnotthesituationfortheAmericancasecompany.Theirhomemarketdifficultiesprecipitatedfurther,ifsomewhatindiscriminate,relianceuponforeignmarkets.
Incommercialterms,ineachofthedimensionsofinternationalisation,thesignificanceofbrandpresentation,expressedbyproductdesignandqualityandmarketingsupportarehighlightedascritical.Hence,wheninitiatinganinternationalisationstrategy,afashionretailershouldreflectuponthecongruenceoftheirproductrangeandbrandimagewiththeprevalentculturalandtradingconditionsoftheforeignmarkets.Productandbrandprofileshouldbealteredtomakeitmoreattunedtomarketconditions,ormarketingcommunicationsusedtoinfluencethemarket’sculturalconceptionsofthem.Thisrequiresadeliberateapproach,co-ordinatingcompanyresources,skilltransferandinternationalpartnerrelationshipsaccordingtoadisciplinedmanagementplanimplementinganintegratedbrand,productandmarketingstrategy.Thecasestudiesillustratedthatalthoughbothretailershadmadedeliberateplanstointernationalise,onehadbeenforcedtochangetheseplansduetoitscommercialsituationandmanagementproblems,whiletheotherhadadoptedaflexibleapproach,enteringdifferentmarketsindifferentways.Thus,bothretailerswentaboutinternationalisationinanopportunisticway.However,onewasproactiveinseekingandbenefitingfromopportunities,whiletheotherwasopportunisticonlyinthatitsawforeignopportunitiesasareactivesolutiontodomesticproblems.Consideringinparticulartheinvestmentsmadeinproductdevelopmentandbrandpositioningitisclearthatbothcasecompaniesadopteddivergentapproaches.TheBritishretailerwasconsistentandcoherentintheircommitmenttoachievingmarketdifferentiationonaplatformofproductinnovationandbrandclarity.Incontrast,theAmericanretailer,inresponsetoferociousshareholderdemandsformaximisedreturn,adoptedashort-termiststrategythatsoughttomaximiserevenuestreamsattheexpenseofproductinvestmentandbrandsecurity.Hence,wecanclassifyeachretailerasfollows:TheBritishas“ProactiveOpportunistic”andtheAmericanas“ReactiveOpportunistic”.Usingthecasestudyfindingsasaframework,thefollowingmodelhasbeenconstructedtoillustratethecontrastbetweenthesecontrastinginternationalisationstrategiesandtheirrespectiveconsequences.Fromthis,onecanconcludethataproactiveopportunisticfashionretailer,characterisedbyaninnovativeapproachtoproductandbranddynamicsachievingcompetitivedifferentialsaspartofanintegratedmarketingstrategy,islikelytobemoresuccessfulindevelopinginternationalmarkets(TableI).
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TableI.
Contrastingstrategiesfortheinternationalisationofafashionretailer
ttuseoohyshdcllolilttnmnadoiairsntkwa–deullatsennvtireerlkdgdaitusmeottuninsaseitcapasiuipnreagegrrdoedlapdnetsbani-pusehttoemaerom-nrgitcmioonmetccisyehunapn,cekrgoltlsrhpitmrteibdhpeltrastyaeieeeeffnetaoooctrentkvmonkkrohtiraitarrprisrisesaiatip”pste,ecsefaddnsiipsicrnvlaeimmsttauttiiiticlmyasrttu,lacetbodctllanllnacicnaabuuhteupensaotnrugdonhtfidicciiniclotmoe“iiauimtldehnoohooniirttrittoannoitesaaifisetorhpskexdnngerroppidawegyatirpfacdeetewgndnavfiroantlitrticlrutqnunoitttaledrscitfaseiitigtreenlaealinfatmaaoreuelnhaeeceooedfikrkoenbtrpsuisnogoieawvpatdptnrruaoqthrsrgenpaapaestsetasslpdeneaonkoritarmr–pronibmnnepydsstillteitdaltaaewbteaerrhfiactbikekiimemlretttckemmeltviaepgaittntnrunnranmrarrsenirauatcm-mipetorrotroeoeoeaihtmreecsirghohrimtrmmtnsdey-gtieraiocboretteiecmreedniifsofmonkrtrehhRnhooptipoIMSTTpanmiWiWffeotaiotidpnoranortoIdvtonIcnIbmEhrsFocdrndsdosleadaeln/irtaadtncoibaittninghehttaetedrlnnuiepaeunglieeaetkrnatdraiirorfnorrmfeqiiagplcnsemffptpoobniitdioaoproooybterrausneandlervrypgptpneooptioggnfig/pliimaevflheotnooacddnabmnndafiinfoininnrtdaositditcaesrintcayaletnrtbiaeodnscduiearisycgnhpynouludvnmcnoelcitddtetghdlunkecesteeoadeaoeaarlcrrorlpealtarcaatgruruenmalnsr,aptpshetlmnbeoegseremantlsamhlscmoemsaoiigueostteadsbricarracoeneihes,isritcnlhatgc,utssfgininnsmehbanvhccntetiedoitesiaeelostitnvgeenotcyrteexwnsrgwdaovecnunneredpenathltikaeocetriatirnrgornokfirpsegrorsvantcipirrhelnpatafeafrfdeaetegeeasraptodngtftpaetnielttpalfpnaeiamkeiilstltnniitafryrcpalnadnedmair,alitoamsiittolanidnaatorpivsetnletercrstnecyibditcmaapaucnairstcmavrr,cteernoiienteirrvcmtaiuendlboroelgteipsdngirnteoen–hitgeeteopptnnkmonzhotieiscpntnerierttaceskutrmnapacreiraieemtiyesttsmtiatarpognrpbterooeeoagistoiuehg–dnkpmrcpkkpetprrrnnereoecektotooopdcrectsvriraamotroraadsPSLCTpnooaTonenaafniOrOhmEegOrbmocnornomoIfpMmaMc??eess?iile?lseaailsnnailooinnaittoionaatioasinnrrnteentreatemntrnniiniedtoointtonitoneriyeethhhwaoswwwhil::::a1234nonnnniooootiiiiassssnnnnnreeeeetmmmmniiiiIDDDDReferences
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