Is Uppsala model valid to fashion retailers? An analysis from internationalisation patterns of fast fashion retailers

2014 ◽  
Vol 18 (1) ◽  
pp. 36-51 ◽  
Author(s):  
Michelle Lynn Childs ◽  
Byoungho Jin

Purpose – Uppsala internationalisation theory is highly utilised due to its simplicity and applicability. However, there are contrasting results on its assumption that firms follow a gradual internationalisation process. Literature shows that firm strategies (e.g. targeting a niche market) and firm resources (e.g. brand image and asset specificity) may decrease barriers of entry. Global fashion retailers possess these characteristics and may not follow a gradual internationalisation pattern. Therefore, the purpose of this paper is to examine whether fashion retailers that target a niche market, have a strong brand image and asset specificity will follow a gradual internationalisation pattern suggested by Uppsala. Design/methodology/approach – Two aspects of internationalisation (speed of internationalisation and market selection) were analysed. Market selection was measured by three aspects of distance (geographic distance, economic distance, and culture distance). Data were collected utilising secondary sources and internationalisation patterns were calculated using existing formulas. Findings – Overall, results provided partial support for Uppsala model. After cautious expansion early in internationalisation, fashion retailers experience a period where rapid expansion exists. During initial internationalisation, geographically and economically close markets were chosen, which mirror the Uppsala model. However, no incremental patterns were observed thereafter. In addition, after initially moving to culturally close countries, firms moved to countries with close cultural proximity to each other rather than close to home market. Research limitations/implications – The findings are based on three cases of fast fashion retailers; thus, for further generalisation, if the findings will be applicable to other fashion firms which have different strategies and resources needs to be examined. Originality/value – This study is one of the first attempts to research the applicability of Uppsala model to fashion retailers. By investigating fashion retailers that target niche markets, have strong brand image and asset specificity; the paper adds additional empirical evidence of situations where internationalisation does not follow the linear pattern that Uppsala model argues.

2015 ◽  
Vol 31 (11) ◽  
pp. 17-20

Purpose – To trace the development of the Benetton Group and describe the causes and consequences of the clothing retailer’s transition from a market-driving to a market-driven strategy. Design/methodology/approach – Presents a history of the company from its beginnings in the 1960s, listing the innovations it adopted to support rapid expansion. Describes the emergence of “fast fashion” retailers such as Zara during the 1990s and explains how and why Benetton subsequently changed its strategy. Findings – It all started with a yellow jumper. Back in the 1960s, Italian men typically wore dark-colored sweaters under a jacket. So when his friends asked if they could have a brightly colored jumper like the one his sister made for his son, Gilberto Benetton realized that they had a different value proposition from traditional companies – and the start of a business. Soon Benetton had a company producing sweaters for local independent retailers in Italy. Plans for expansion brought further innovations that were new to the clothing market of the time. Practical implications – Draws attention to the value of first-mover advantage and the need to align competitive strategy with current market conditions. Social implications – Highlights the value of Benetton’s emphasis on developing long-term relationships based on trust with suppliers and retailers. Originality/value – Questions the value of a market-driving strategy as the basis for sustaining long-term financial performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaoyong Wei ◽  
Sojin Jung

Purpose When fast fashion brands launch corporate social responsibility (CSR) programs, consumers may consider these brands to behave hypocritically as their business model is generally perceived as being inconsistent with sustainable practices. Built on construal level theory (CLT), this study aims to examine how the benefit appeals that are widely used in CSR initiatives affect perceived corporate hypocrisy and the CSR performance of fast fashion brands. Design/methodology/approach This study designed an online experiment with a 2 (fashion brand: fast fashion vs. unknown) × 2 (benefit appeal: self-benefit vs other-benefit) stimulus, using a virtual label named “Eco Care” for experimental manipulation. A total number of 298 Chinese consumers participated in the experiment and they answered an online survey. Findings It was found that the brand types (fast fashion vs unknown) and benefit appeals (self-benefit vs other benefit) did not elicit perceived corporate hypocrisy nor did them directly affect perceptions of CSR performance. However, there was a significant interaction effect of them. That is, fast fashion brand’s CSR performance was judged based on how the brand framed its sustainability claims. A fast fashion brand’s CSR label significantly increased hypocrisy perceptions when the label used a self-benefit appeal and the interactive effect of the fast fashion brand and the self-benefit appeal hindered the formation of a green brand image and brand purchase intentions. Originality/value This study adds a body of knowledge to the literature by examining the relationship between benefit appeals and perceived corporate hypocrisy from the perspective of CLT. The findings can help fast fashion marketers better understand the critical role of benefit appeals by acknowledging that the misuse of communication strategies may result in unfavorable consequences, thus ruining their efforts to improve their brand’s image.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chunhui Huo ◽  
Javaria Hameed ◽  
Muhammad Waqas Sadiq ◽  
Gadah Albasher ◽  
Wedad Alqahtani

PurposeThis paper aims to provide a valid insight into consumers' minds while considering word of mouth (WOM), brand image and uniqueness as independent variables while considering the tourism industry as the primary stakeholder.Design/methodology/approachThe study adopts qualitative research methods and data collected from 1,033 respondents using convenience sampling methodology. The data are collected from different tourists spots in China and Pakistan. The PROCESS macro was utilized in this study using SPSS version 25.0 to inspect the impacts by using Model 4 and the conditional effects indirectly by utilizing Model 14.FindingsCustomer's intimacy, search for novel and unexplored destinations highlight WOM interactions and perceived service value. Service value, interactional justice and professional attitude of hotel management mediated all the given relationships significantly. The brand image does not mediate any significant associations. Perceived service value and brand image predict customer's loyalty, and WOM is the direct measure of their intentions, and these variables are market trend indicators. A tourist's response toward different destinations is described in this study with comparative analysis of Chinese and Pakistani tourists. The study results showed a significantly positive relationship between hotel management professional behavior, customer's loyalty, customer's intimacy and WOM.Research limitations/implicationsThe recruited population might not be represented as the broader and larger visitor population, resulting in restricting establishing tactics. Moreover, this study's results provide significant insight into a tourism industry, hence providing a chance to manage customer loyalty better.Social, managerial and theoretical implicationsThis study contributes significantly to the body of knowledge and provides remarkable insight from the managerial perspective. Interactional justice results in significant value for hotel management directors and top management, front desk staff and operatives and front level employees and managers. Consumer sensitivity of fairness in interpersonal dealings calls for behavioral changes in frontline employees, especially those directly dealing with hotel visitors. Hotel staff and management should formulate a system to deal with the demands and needs of visitors. It should describe the rights and obligations of visitors and ensure that each customer is treated equally and with respect. Customers should be motivated to read the survey questionnaires kept in their rooms and offer their views on the services provided. This strategy might increase the customers' sense of empowerment and leading to notions of fairness in individual encounters.Originality/valueThis study provides an insight into the customer's minds while considering essential variables that include WOM, brand image, perceived service value and uniqueness.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dedong Wang ◽  
Hui Li ◽  
Yongqiang Lu

PurposeThe purpose of this study is to examine the factors influencing the transaction costs (TCs) in megaprojects to provide a basis for controlling project costs.Design/methodology/approachThis study selects six factors influencing the TCs in megaprojects from the perspective of TC theory and relational contract theory (RCT) through literature review. On the basis of crisp-set qualitative comparative analysis (QCA), this study tests combined factors influencing the TCs and the interaction between them.FindingsResults show that in megaprojects, TCs are affected by combination factors. The combination of asset specificity, uncertainty, transaction frequency and trust and the combination of asset specificity, reputation and trust will control TCs in certain situations. In the configuration leading to high project TCs, the combination of environmental and behavioral uncertainties is a necessary condition.Originality/valueThis paper fills up the research gap in the field of megaproject TCs, and researchers can focus on this field in the future.


Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zonghuo Li ◽  
Wensheng Yang ◽  
Yinyuan Si

PurposeThis paper investigates a dual-channel supply chain in which a manufacturer offers coupons in the online channel and the retailer in the offline channel. The optimal pricing and coupon promotion policies are explored, and the brand image under different promotion scenarios is studied.Design/methodology/approachThree differential game models, namely no coupon is offered, coupons offered by the manufacturer and coupons offered by the retailer, are constructed.FindingsThe results show that the manufacturer and retailer intend to conduct coupon promotions under a large coupon redemption rate. Coupon promotion derives a higher price and profit for the issuers, and the manufacturer can free-ride on the retailer's coupon promotion. The retailer's profit in the retailer-promotion scenario may be lower than that in the manufacturer-promotion scenario in some special conditions. Besides, price, coupon face value, brand image and profit increase over time. After multiple cycles game, the operational strategy evolves to an optimal equilibrium status.Originality/valueThis paper provides guidance and advice for dual-channel supply enterprises to implement joint pricing and coupon promotion strategies under multiple sales seasons.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Menglong Xia ◽  
Yang Zhang

PurposeMobile technologies have recently come to serve as the primary reservation option for the hospitality industry. This study examines the role of online experience in determining potential consumers' perceived hotel brand image, through a three-stage model based on the stimulus–organism–response (SOR) framework.Design/methodology/approachA dual-stage analytical procedure, including structural equation modeling (SEM) and an artificial neural network (ANN) approach, was adopted to test the hypotheses.FindingsOnline experience of mobile applications (apps) can be influenced by perceived usefulness. As the indivisible component of consumers' cognitive beliefs, perceived ease of use exerts a positive impact on online experience. The online experience of mobile apps positively influenced brand awareness and satisfaction, further contributing to potential consumers' brand image formation.Research limitations/implicationsThis study empirically verified the relationships among potential hotel consumers' perceptions of official hotel mobile app quality, online experience and brand image.Practical implicationsThis study reiterates the importance of official hotel apps in implementing online marketing strategies, suggesting that hoteliers should pay attention to enhancing the quality of their official apps.Originality/valueThis study is one of the first to combine machine learning techniques with the traditional SEM approach to assess linear and nonlinear relationships in consumers' perceptual models. Additionally, the findings provide theoretical insights into the online experience of mobile apps and reveal the perceived brand image formation process of potential consumers.


2018 ◽  
Vol 13 (6) ◽  
pp. 1475-1501 ◽  
Author(s):  
Varaporn Pangboonyanon ◽  
Kiattichai Kalasin

Purpose The purpose of this paper is to investigate how within-industry diversification affects the financial performance of small- and medium-sized enterprises (SMEs) in emerging markets (EMs). The authors draw on both the resource-based view and the institutional perspective and argue that within-industry diversification can enhance the financial performance of SMEs in EMs. Due to institutional voids in emerging economies, SMEs can gain additional benefits from scope economies, as well as from market returns, by filling product market voids and gaps in business ecosystems, while also enjoying low input and labor costs that reduce the coordination costs of diversification. This, in turn, enhances benefits of within-industry diversification, thereby resulting in higher financial profitability. Design/methodology/approach This study employs panel data econometrics to estimate the model. The authors test hypotheses on 195 firms, originating from five countries in Southeast Asia, during the period of 2009–2014. Findings The empirical results support the arguments. Within-industry diversification has a positive impact on the performance of SMEs in EMs. These effects become weaker when the institutional contexts are more developed. Nevertheless, such effects become stronger when SMEs in EMs are more efficient. Research limitations/implications The relationship between within-industry diversification and performance is a positive linear pattern, which differs from the pattern in advanced economies. In addition to unrelated diversification, the related diversification is preferable for firms in EMs. Practical implications The paper provides implications for SMEs that aim to enhance their performance by engaging in single product lines and within-industry diversification. Originality/value This paper examines the different ways within-industry diversification can enhance SMEs performance in EM contexts.


2014 ◽  
Vol 58 (9) ◽  
pp. 4997-5004 ◽  
Author(s):  
Ritu Banerjee ◽  
James R. Johnson

ABSTRACTEscherichia colisequence type 131 (ST131) is an extensively antimicrobial-resistantE. coliclonal group that has spread explosively throughout the world. Recent molecular epidemiologic and whole-genome phylogenetic studies have elucidated the fine clonal structure of ST131, which comprises multiple ST131 subclones with distinctive resistance profiles, including the (nested) H30, H30-R, and H30-Rx subclones. The most prevalent ST131 subclone, H30, arose from a single common fluoroquinolone (FQ)-susceptible ancestor containing allele 30 offimH(type 1 fimbrial adhesin gene). An early H30 subclone member acquired FQ resistance and launched the rapid expansion of the resulting FQ-resistant subclone, H30-R. Subsequently, a member of H30-R acquired the CTX-M-15 extended-spectrum beta-lactamase and launched the rapid expansion of the CTX-M-15-containing subclone within H30-R, H30-Rx. Clonal expansion clearly is now the dominant mechanism for the rising prevalence of both FQ resistance and CTX-M-15 production in ST131 and inE. coligenerally. Reasons for the successful dissemination and expansion of the key ST131 subclones remain undefined but may include increased transmissibility, greater ability to colonize and/or persist in the intestine or urinary tract, enhanced virulence, and more-extensive antimicrobial resistance compared to otherE. coli. Here we discuss the epidemiology and molecular phylogeny of ST131 and its key subclones, possible mechanisms for their ecological success, implications of their widespread dissemination, and future research needs.


Media Asia ◽  
1999 ◽  
Vol 26 (1) ◽  
pp. 33-38 ◽  
Author(s):  
Mark Speech ◽  
Hoang Thi Phuong Thao

2018 ◽  
Vol 41 (1) ◽  
pp. 148-164 ◽  
Author(s):  
Uttam Chakraborty ◽  
Savita Bhat

Purpose Brand image is considered as a signaling phenomenon because high brand image ensures quality product that can reduce consumer’s uncertainty. A strong brand image induces consumers to pay higher prices, which in turn provides competitive advantage and market success to a company. Online reviews, blogs and texts on brand usage experiences are more effective than oral communication to build a strong brand image. Online reviews on products create distinct places for brands in the consumer’s mind, and thus ultimately affect images of the brands. Therefore, the purpose of this study is to investigate the effects of online reviews on functional and hedonic brand images in the context of consumer electronic products in India. Design/methodology/approach The present study adopts a novel approach to collect data. The data have been collected from select e-commerce sites’ brand pages on Facebook through Google form application. A number of respondents are 1,038. Structural equation modeling technique has been used to examine the effects of online reviews on functional and hedonic brand images. Findings The data analysis reveals that source and review quality have more significant effect on credibility evaluation of online reviews as compared to the effects of review consistency and receiver. Moreover, credible online reviews have more impact on hedonic brand image rather than functional brand image in the context of consumer electronics product in India. Originality/value The present study combines Yale attitude change model and attribution theory to examine the effects of online reviews on brand image.


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