Purpose This empirical study aims to examine luxury fashion retailers' localised multiple channel distribution strategies in China. Design/methodology/approach Through case studies of 15 participating retailers, qualitative data were collected from 33 semi-structured interviews. Findings Strong impacts of internationalisation strategies, distribution strategies and channel length towards multiple channel retailing are revealed. Multi-channel retailing is widely employed by firms who have entered China and further developed their businesses through local partnerships and adopted a selective distribution strategy via relatively longer channels. Omni-channel retailing is only suitable for the few retailers using an exclusive distribution strategy through direct marketing and wholly owned customer relationship management. As a dynamic transformation from multi- to omni-channel retailing, cross-channel retailing is adopted by those who are withdrawing from local partnerships and shifting to wholly owned expansions and operations in host markets. Research limitations/implications The results are potentially challenged by relatively small sample size. Practical implications Practitioners are suggested to adapt multiple channel retailing to their international expansion strategies, distribution strategies and channel length in the host markets. Originality/value This paper contributes to the literature in both multiple channel retailing and international retailing by offering insights into the motives, development patterns and suitability of multiple channel retailing in the international retail marketing context.
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.
This article aims to examine internationalization strategies of emerging market multinationals (EMNCs) in luxury fashion retailing via their motives, direction, and entry modes. Through the case study of the Shandong Ruyi Group, data were collected using 10 in-depth executive interviews between 2018 and 2019. The research finds that the internationalization of EMNCs in luxury fashion retailing is predominantly motivated by proactive factors, including the vision to develop to a global luxury fashion conglomerate, and the ambition to control the whole value chain from sourcing, to manufacturing and retailing. The international expansion direction in terms of production is strategic and driven by resource availability and production capability, and in terms of distribution was opportunist but is increasingly strategic. High cost entry modes are preferred, including internal organic growth, external expansion strategies such as mergers and acquisitions, and strategic alliances with a majority of equity, because of the high degree of control.
Mono-brand stores have traditionally served as the pre-eminent sales and distribution channel for luxury fashion goods. Although the emergence of digital sales channels platforms has certainly challenged the sales channel dominance of mono-brand stores, the consequential impact of digitalisation of luxury-brand selling has been to recast and intensify the strategic value of mono-brand stores, principally as a means of reinforcing, protecting, and communicating the luxury brand’s proposition across international markets. By drawing from and applying agency theory and institutional theory to an understanding of the role of the mono-brand store, we can gain insight into the evolution of the most traditional of luxury-brand distribution methods in the twenty-first century.
Purpose This 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/approach The research adopts qualitative multiple case studies. Findings After 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/value The 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.
This study aims to examine the motives behind retailers’ post-entry expansion in foreign markets. Through case studies of eleven participating luxury fashion retailers in China, qualitative data was collected from twenty-two executive interviews. Although their initial market entry was driven by both reactive (push) and proactive (pull) factors, the motives behind their post-entry expansion have become predominantly proactive, especially long-term growth strategies, the ambition to extend their brands and retail formats to more cities, and the experiences gained in entry markets. The desire to optimize the retail store portfolio through multiple channel strategies have slowed down the expansions of physical stores.
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.
The men’s fashion market is expanding at a faster pace than womenswear and men’s fashion is predicted to outperform womenswear in terms sales growth to contribute £380 billion to the global clothing and footwear market by 2020. Despite this growth and the contribution that the men’s fashion sector makes to the global economy in terms of GDP and employment levels, there is a paucity of research within this area. Traditionally, fashion companies have expanded through organic means moving from wholesaling and exporting to franchising and direct ownership. More recently, fashion retailer have increasingly adopted a born global approach to enhance existing strategies or by expanding in some cases only through online sales to becoming omnichannel companies. For many fashion companies, this increase in online sales has impacted upon their in-store sales and as such there has been an increase in the decline and failure of a number of traditional bricks and mortar fashion stores. Bricks and mortar stores, however, are still a necessity in driving sales and still account for the majority of total sales. In the face of this, there remains a very successful global fashion market where key players combine methods of expansion to satisfy the needs of ever expanding and differentiated global markets. Much of this expansion takes place amongst global companies who receive their investment from shareholders, thus allowing them to expand more rapidly and through direct foreign investment such as retail stores. Entrepreneurial ventures which are generally owner managed have tended to expand more organically by methods such as exporting, wholesaling and franchising which offer less risk in the face of business decline and this form of ownership allows for greater control over investment. This exploratory research, which aims to provide an analysis of the menswear fashion brand to guide strategy for the expansion of the menswear industry, was carried out with by means of in-depth interviews with senior personnel in 14 menswear fashion retailers across Europe. It considers expansion, ownership and communication strategies thought to be the key areas for success for menswear fashion retailers. It also considers the differences in expansion and operational strategies between menswear and womenswear through the lens of owner managers or directors of menswear brands and aims to build a model of successful menswear retail strategy across Europe.
Purpose The purpose of this paper is to examine luxury fashion retailers' ownership structures at their internationalisation strategies in Hong Kong and mainland China.Design/methodology/approach This study adopts a pragmatic mixed methods approach, comprising a quantitative mail survey and ten qualitative executive interviews.Findings This study found that group-owned luxury fashion retailers usually encounter fewer difficulties when internationalising into mainland China than their individually owned counterparts because of parenting advantage, particularly functional and service support. However, the success of some individually owned brands has demonstrated that branding strategies, management culture, international experience, financial power and local partners' know-how are as important as parent company support and although the luxury market in mainland China has become developed, many foreign luxury fashion retailers still enter Hong Kong prior to mainland China. However, in relation to post-entry management and expansion strategies, the importance of Hong Kong has weakened because the emergence of capital cities, the growth of the middle class and fewer political restrictions.Research limitations/implications The research findings are generated in the context of Hong Kong and mainland China, they are therefore limited in explaining luxury fashion retailers' internationalisation strategies in other markets. Despite the challenge of the sample size, 63 out of 130 survey respondents (48.5 per cent response rate) and ten interview participants are felt to be sufficient to represent the market.Practical implications This research can be used by practitioners when assessing appropriate entry strategies to the Chinese luxury fashion market.Originality/value This is a pioneering study of the Chinese luxury market from the perspective of international retail strategies. It differentiates between Greater China (including Hong Kong, Macau and Taiwan) and mainland China, and examines the impact of luxury fashion retailers' ownership structures on their internationalisation strategies.
Purpose - The purpose of this paper is to examine internationalising luxury fashion retailers' entry and post-entry expansion strategies in mainland China. Design/methodology/approach - The study adopts a pragmatic mixed-methods research approach, including a quantitative mail survey and qualitative face-to-face in-depth executive interviews. Findings - Different from initial single entry methods, multiple methods are increasingly popular for luxury fashion retailers' post-entry expansion in mainland China. Although directly controlled expansion strategies have become significant, local partnerships are still important and omnichannel distribution strategies are rapidly growing. Research limitations/implications - The findings were generated in mainland China only. Originality/value - This work provides an understanding of luxury fashion retailers' activities in the Chinese market from both macro and micro perspectives. It examines luxury fashion retailers' initial entry strategies, as well as their post-entry expansion strategies in mainland China. Few studies in the area of international luxury fashion retailing have employed a mixed-methods approach with this number of participants.
This paper considers the standardization–localization debate within the context of foreign luxury fashion retailers' internationalization into the emerging Chinese marketplace. Luxury retailers must balance a global–local dilemma, given the challenging trading conditions of a complex marketplace with low brand awareness and loyalty, alongside the need to maintain exclusivity and standardization of brand image across all markets. Qualitative data from 22 luxury fashion retailers currently active in the Chinese market provide rich insights that reveal the decision-making process for marketing strategies that support entry into China. Foreign luxury retailers balance the ‘global–local dilemma’ in China firstly by locating operational management control within the strategic hub of Hong Kong, and secondly by implementing far more adaptive and enterprising marketing communications than seen in other mature markets. At the same time, foreign luxury retailers retain tight strategic control of key branding dimensions at head offices in their home markets, as part of a successful long-term luxury brand management strategy. As Chinese luxury consumers increasingly feel part of a global elite, over-localization may cause confusion over brand identity and country of origin (COO). The insights may be strategically useful for luxury retailers entering or expanding in China and also provide indications of future trends of luxury retailing in China and other emerging markets.
It is recognised within the literature that strategic and operational activities associated with the development and portrayal of the fashion retailer brand, are essential to creating value and maintaining competitiveness. The literature, however, is fragmented and brand building activities are rarely considered as a coherent process. This research empirically tests a conceptual model of value chain activity for fashion retailers which was developed from the literature and was based on Porter’s Value Chain. The research involved in depth interviews with fifteen of the largest and most successful high street fashion retailers. An updated model of value chain activity for fashion retailers is proposed which takes account of recent changes and developments in the market. The results of this study provide a basis for value chain activity and added value in the fashion retailing sector.
Examines the role of design within the context of shopping centre positioning by means of a case‐study approach, based upon the design and implementation of festive decorations for the award‐winning Prince’s Square shopping centre in Glasgow. Seeks to identify the role that design and the designer plays in the process of developing a positioning statement for a shopping centre. Examines in particular the design development process from the designer’s perspective, and provides an insight into how these professionals approach the problem of integrating design creativity within the physical constraints of a shopping centre, while at the same time seeking to satisfy the marketing aspirations of the retailers housed there.
Purpose: This is an exploratory paper which empirically tests a conceptual model of value chain activity for fashion retailers, developed from the literature. Design/methodological approach: The research involved in depth interviews with 15 of the largest and most successful high-street fashion retailers. Participants were asked to comment on the structure and content of the value chain model. Findings: An updated model of value chain activity for fashion retailers is proposed which takes account of recent changes and developments in the market. Research limitations/implications: This exploratory study is limited to the experiences of 15 large-scale fashion retailers and may benefit from further empirical testing. Practical implications: The results of this study provide a basis for value chain activity and added value in the fashion retailing sector. Originality/value: Academic development and empirical testing of generic business models in the fashion retailing sector is rare. This exploratory research seeks to address this scarcity.
PurposeSince the concept of the flagship store format was first introduced to retailing in the 1970s, both its form and function have evolved considerably. The highest concentration of flagships can be seen in the luxury fashion market. This paper aims first to define the flagship concept in terms of its key characteristics, and second to outline the academic and industry developments, thereby charting its evolution.Design/methodology/approachResearch was undertaken qualitatively due to the exploratory theory building nature of the subject area and the absence of accepted theoretical frameworks. This took the form of non participant observation and in‐depth interviews with brand representatives within seven major fashion capitals.FindingsThe research identifies essential elements of the luxury store format: its scale and size which usually exceeds functional need; it is derived and built on the twin features of exclusivity and uniqueness; it seeks to offer the customer a justification for their visit. The format evolves and adapts to find new ways of generating and communicating differentiation.Research limitations/implicationsThe findings provide direction for future research in the area, in particular, an opportunity to investigate how luxury flagship stores adapt in order to accommodate market conditions.Originality/valueThe paper delineates the characteristics of the luxury flagship store format and identifies a new characteristic of this format.
PurposeIt has been proposed within the branding literature that the theory of the brand be extended within a variety of industries. The purpose of this paper is to offer a deeper understanding of the centrality of the own brand to fashion retailer brand strategy.Design/methodology/approachThe research involved six in‐depth interviews with large‐scale fashion retailers from a sample of the 20 largest and most successful fashion retailers in the UK.FindingsParticipants identified the motivations, dimensions, success factors and problems associated with the creation, development and management of the own brandResearch limitations/implicationsThis is an exploratory study and as such is limited to the experiences of six fashion retailers. It is, however, part of a larger empirical study.Practical implicationsThe results of this study provide key areas for future research development to be applied within the fashion retail sector or to be expanded within alternative retail sectors.Originality/valueThe development of brand strategy within the fashion retailing sector reveals a paucity of empirical and theoretical studies. This exploratory paper seeks to address this scarcity.