International Retail Management

Author: Yao Zhonghua
Editor-in-Chief: Lin Zhibin
Publisher:
Publish Date: 1999-06-01
Features: International Retailing Management refers to the retail's operational strategy selection, investment environment analysis, product procurement, storage and transportation, sales process control, and management of various aspects such as retail goods, pricing, promotion, service, and information systems when providing goods and services directly to end consumers in more than one country through cross-border investments. This book primarily analyzes the management practices of large retailers in developed countries in the retail industry, examining the decision-making processes in retail management to help us understand the needs for reform and development of the domestic retail industry from an international market perspective.
Detailed Introduction: Currently, China's retail industry, after decades of high profit margins and returns, is facing a severe situation. The traditional retail structure centered around large department stores is being heavily impacted by innovative retail formats, with investment returns in the retail sector plummeting and the industry facing unprecedented challenges. Research on International Retailing Management is highly needed for the international development of China's retail market.
First, the revolution in retail and the evolution of retail theory require the continuous updating of traditional retail concepts and management methods. International retail has already undergone three revolutions, while China's retail industry as a whole is still dominated by large department stores. We lack understanding of advanced retail forms and methods in international retail, making it difficult to apply market characteristics in practice.
Second, international retailers are vying for a foothold in China's retail market. Although China's retail market has made significant progress in the past two decades of reform and opening-up, with improved retail management levels, the entry of foreign retail enterprises has intensified competition, turning it more international. Meanwhile, foreign investments in China's retail sector have caused significant tremors in local retail, creating a stark contrast with the low performance of many domestic retailers.
Lastly, as Chinese retail enterprises begin to explore overseas markets, they also need to familiarize themselves with the basic principles of international retail management and international practices. Chinese retailers, driven by their own development needs, are either engaging in joint ventures with renowned international retailers or investing abroad. For example, some retailers in Guangdong have established stores in Russia and Eastern European countries, marking their entry into international markets. Not only is it essential to understand the local economic environment, but it is also crucial to grasp the principles of international retail management and international practices to leverage advanced management methods to explore, capture, and win markets.
The path forward for China's retail industry lies in continuously learning from the retail management experiences of foreign retailers. First, it is essential to create distinctive retail operations, differentiate from other stores, and develop personalized branding strategies to attract and retain loyal customers in niche markets. Second, it is necessary to standardize the development of chain operations and continuously explore new retail formats to break free from traditional constraints. Lastly, when conditions are ripe, flexible and diverse approaches should be adopted to pursue international operations.
Excerpt: In the fierce competitive retail market, retailers must quickly adapt to changing environments and make wise decisions, which is both a challenging and exciting endeavor. In New York City, there are over 200 banks competing for customers. DDD Savings Bank (DollarDryDockSavingsBank), with $4.7 billion in assets, successfully attracted new customers using retail methods. Linda Lockhart, Senior Vice President of Marketing, leveraged her retail management expertise to secure financial services for Bloomingdale's fashion sales. DDD's branches developed specialized methods for eye contact, emotional engagement, and customer relationship building. The bronze windows, heavy doors, and dim counters were replaced with red and purple pavilions, complemented by special financial services. Ceiling-mounted TVs introduced bank products and services, while large digital screens displayed the latest financial market information and news bulletins.
Thanks to Linda Lockhart's background in retail management, she understood that customers have the right to expect excellent service, which was crucial. She hired and trained former actors and actresses to provide product information, knowing how to engage customers and guide them effectively at the same time. She also employed experienced individuals, such as former waiters and waitresses, to act as sales advocates. In 1987, DDD had fewer than 1,000 new customers. After adopting Linda Lockhart's retail attraction methods, the bank gained 1,900 new customers by 1990.
In the following sections, we will describe the international retail environment and explain the principles of retail management in such a dynamic setting. Knowledge of these retail principles and operational practices will help us understand why developing retail management skills is essential. Since many companies ultimately sell their products and services to end consumers through retailers, this content is highly relevant to both general commercial and retail companies.
Retail refers to a series of commercial activities that involve selling products and services to end (final) users. While people often associate retail with in-store product sales, it also encompasses services, such as staying at motels, receiving medical examinations, getting haircuts, renting videos, or dining at restaurants. Not all retail occurs in physical stores. For example, Avon (excluding China) sells cosmetics directly to customers through door-to-door sales, L.L.Bean and Sears sell through catalog sales, the Home Shopping Network sells through cable TV, and the Internet facilitates retail sales.