Changes in the Marketing Orientation Within the Business Model of an International Retailer

Reported in this paper is an interview- and press release-based study that considers the market-driven and market-driving activities within the disaggregated components of a business model. This is based on an empirical study of IKEA in Malaysia over the past 20 years. Market orientation is perceived to be a position on a continuum, not a binary one. The components of the business model employed in this study were developed from Osterwalder and Pigneur. Findings show that over time the balance between driven and driving orientations of the company changed in a number of ways with respect to its business models. This chapter contributes by showing the disaggregated nature of market orientation of driving and driven activities and linking them to a given component of business model as well as reviewing what happened to the driven-driving balance over the course of time. This approach can widely be applied with respect to attempts geared towards understanding the dynamic nature of international retailing.

Luxury fashion retailers' localised marketing strategies in practice – evidence from China

PurposeFrom an international retailing perspective, this empirical study aims to examine luxury fashion retailers' changing marketing strategies in China.Design/methodology/approachUsing case studies of 14 luxury fashion retailers, qualitative data were collected via 31 semi-structured executive interviews.FindingsBoth standardised global and localised multinational marketing strategies were found to have initially been employed by luxury fashion retailers entering into China. Subsequently, localised multinational strategies became increasingly important for their post-entry operations and business development, particularly in terms of their product strategies. More specifically, as well as the introduction of Chinese brand names, product design has been adapted according to Chinese market conditions, and product portfolios have been adapted to satisfy regional differences. However, localised product sourcing in China is far less common.Research limitations/implicationsAs the findings are generated from China, they may not explain luxury fashion retailers' marketing strategies in other markets. Despite the relatively small sample size, the 14 luxury fashion retailer case studies originate from across a wide range of countries, retail formats and ownership structures and are therefore considered to be varied enough to represent the market.Practical implicationsThe study offers practitioners insights into the success that can be generated by the manipulation of marketing strategies, particularly product strategies, within the world's second biggest luxury market.Originality/valueThis paper extends the current international retailing literature by examining and comparing the motives and practices of luxury fashion retailers and the increasing localisation of their marketing strategies in China as they move from initial market entry into their post-entry operations.

Does environmental corporate social responsibility increase consumer loyalty?

PurposeThis study identifies the impact of supermarket environmental corporate social responsibility (ECSR) on consumers’ loyalty towards their supermarket. Based on the stimulus-organism-response (S-O-R), this study demonstrates how positive and negative emotions mediate the relationships between consumers’ perceptions of ECSR and consumers’ attitudes towards their supermarket. This study draws from cultural theory and works on sustainability and examines the moderating effect of the cultural context on these relationships.Design/methodology/approachA supermarket intercept survey was conducted among 327 consumers in France and 444 consumers in Morocco. The proposed model was analysed using Amos 22.FindingsECSR’s impact on consumer loyalty varies across cultural contexts through the mediation of positive and negative emotions. The study also indicates how consumers’ levels of environmentalism moderate the direct effect of supermarket ECSR on consumers’ attitudes towards the supermarket.Research limitations/implicationsBased on the S-O-R and cultural theories, this study demonstrates how the dimensions of the cultural context moderate the direct and indirect effects of ECSR on consumers’ loyalty towards their supermarket. Specifically, favourable perceptions of supermarket ECSR have an ambivalent impact on consumers’ attitudes through the mediation of negative emotions, such as shame, in more collectivist, low uncertainty avoidance and short-term oriented countries.Practical implicationsTailored recommendations for supermarket managers interested in ECSR and operating in an international context are provided.Social implicationsThis research highlights the varying impacts of environmental actions in international retailing.Originality/valueUsing the S-O-R and cultural theories, this study reveals nuances to existing knowledge on the role of consumers’ emotions in international retailing. It reveals the salience of negative emotions after the perception of a positively valenced stimulus across distinct cultural contexts.

Parenting advantages of emerging market multinationals (EMNCs) in luxury fashion retailing

PurposeThis empirical research, adopting an international retailing perspective, aims to examine the parenting advantages offered by emerging market multinationals (EMNCs) in luxury fashion retail sector.Design/methodology/approachThe researchers adopted a qualitative case study, and the qualitative data were collected through ten semi-structured interviews with senior managers.FindingsIt is a win–win situation for the EMNCs as parent groups of Western luxury fashion brands, as the EMNCs can access critical assets including advanced brand management expertise, retailing know-how, and the services skills needed for higher income consumers. Meanwhile, the subsidiary brands benefit from a high degree of autonomy, intra-group resource utilisation, a competitive brand portfolio and most importantly economies of scales in the value chain, particularly in production. The perceived risks of EMNCs ownership include potentially restricted autonomy and the uncertainty over corporate development activities in the future, as well as the risks of diluting brand image caused by the inconsistency between country of origin and country of ownership.Research limitations/implicationsVery few EMNCs have moved into luxury fashion retailing to date, which means that the sampling frame was small. The findings were generated from China, which is perceived to be of considerable psychic distance in terms of culture and policies compared to other emerging markets that have been heavily influenced by colonialism.Practical implicationsThis paper suggests that practitioners, particularly EMNCs, support their subsidiary luxury fashion brands through parenting advantages and develop their own high-end fashion brands through internationalisation.Originality/valueThis empirical study contributes to the current international retailing literature by offering in depth insights of parenting advantages offered by EMNCs in luxury fashion retailing. It also enriches the EMNC literature, which has mainly adopted an international business scope, by extending this understanding into luxury fashion retailing.

Direction of luxury fashion retailers' post-entry expansion – the evidence from China

PurposeThis empirical study, from the international retailing perspective, examines the direction of retailers' further expansion after initial entry into overseas host market in the context of the luxury fashion retail market in China.Design/methodology/approachThe research adopts qualitative multiple case studies.FindingsAfter initial entry into China, luxury fashion retailers further expand their retail operations through three directional patterns: cautious, regional and countrywide expansions. The stepwise expansion from tier-1 to tier-2 and tier-3 cities remains popular; however, the importance of the tier system of Chinese cities has been weakened because tier-3 cities in affluent regions are perceived to have more potential than some tier-2 cities in less developed regions. The retailers assess a potential local market through interrelated criteria, including location and strategic importance, economic development, available store locations and staff, a high degree of urbanisation and tourism, debatable favourable policies and offers, and popularity of e- and m-commerce. There is a positive relationship between popularity of e- and m-commerce in a city and the potential of that city to run brick-and-mortar stores.Originality/valueThe paper offers an insight into the current international retailing literature by examining the direction of luxury fashion retailers' further expansion after their initial market entry. Particularly, the research considers a set of criteria which can be used to assess a potential local market, and the impact of e- and m-commerce on local market choices for brick-and-mortar stores.

“It’s a new game out there”: e-commerce in internationalising retail SMEs

Purpose The purpose of this paper is to explore how market factors (pertaining to institutions, competition and resources) shape the international strategies of an online retailer. Design/methodology/approach A single qualitative case study research design is employed to conduct in-depth analyses of a Swedish internationalising small- and medium-sized enterprise (SME) in the retail business. Findings The findings show that online retailers can use partnerships to tackle industry dynamics and break into foreign markets. This type of “piggy-back internationalisation” can be an effective strategy of handling foreign market dynamics in the entry phase: that is to say, the short term. Reliance upon relationships, however, may paradoxically inhibit retailers’ abilities to stay competitive in the post-entry phase (i.e. the long term) since they become cut-off from the first-hand market learning. Research limitations/implications The authors provide propositions based upon the findings to support further research in the international marketing and international retailing literature. Practical implications The findings enhance the understanding of how electronic commerce affects SME internationalisation. They also generate new insights into the use of possible international expansion strategies for managers in retail SMEs. Originality/value This study introduces a new theoretical perspective to build upon international retail research and contributes to the international retail literature with relevant insights into both advantages and disadvantages of using partnerships to overcome challenges related to international online retailing.