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-individual independent stores
-no chain stores (thus no economies of scale) |
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from producer to wholesalers to retailer to consumer
-wholesaler has the control
-more perishable, the longer the channel
-long channel = speed track |
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-lots of buyers and sellers, no one dominant; everyone sells at going price
-more same type of goods in one place, more foot traffic |
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| -convenience vs specialized goods |
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-Branding
-wholesalers have power
-developing nations = brand names
-as nation develops, demand for more merchandise, so brands matter, first national brands introduced are usually international |
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| Flexible prices with bargaining (Many Southeast Asian nations use this) |
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unwritten rule: bargaining in good faith
-become obsolete with chain stores |
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-based on familiarity or geographic location, not ability to pay back
-both customers and retailers depend on credit
-In Brazil, 46% apparel operates on formal credit. |
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Definition
| -Retail:Roaming salesmen, scrambled merchandise, kiosks, basic origins of civilization- hunting and gathering; lack production. |
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Term
| 2nd Preconditions for Takeoff |
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Definition
Retail- Government owned or family owned;
- more transportation, communication;
- ex: Nigeria, -Kenya
-Little communication, beginning of electricity, healthcare etc.
-Start of individual social mobility
-Science applied to agriculture
-no middle class (poor or rich) |
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| 3rd The Takeoff (best stage to enter- “prime internationalization”) |
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Definition
| Retail- Superettes, supermarkets, shopping centers; company wants to internationalize; -economy is growing, human capital starts to facilitate production process, 1st industry- textiles; |
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Definition
Retail- wet markets (open outdoor markets that sell fresh food, meat), supermarkets, shopping centers in decline; economy sustainable, modern medicine, education;
- ex: India, Brazil, Mexico, China
-Top countries to internationalize to right now
-supermarkets coexist with wet markets |
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Term
| 5th Age of High Mass Consumption |
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Definition
Retail- Retail offerings highly specialized, vertically integrated retailers, Foreign Direct Investment; privatization (government can’t own everything);
-ex: G7 nations
-Switches to durable goods and services (bankers, nail salons, insurance)
-Must have privatization, government cannot own everything
-Economic Geography- geographically based wealth (G7)
-FDI
-Have to have logistics in the infrastructure- Transportation and communication.
-Ex: “The Four Tigers”- Hong Kong (Self developed),South Korea, Taiwan, and Singapore. |
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Definition
| a group of countries with differences and similarities in each country |
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| he most trade agreements, 30. Latin America is also apart of CAFTA (Central American Free Trade Agreement) and NAFTA (North American Free Trade Agreement) which are joined by the FTAA (Free Trade Agreement of the Americas). The agreements have created regional markets that have stimulated investment and trade. |
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| Transparency International Corruption Perceptions Index |
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Definition
ountries that have a number grade of countries considered to have corruption problems from the ones that don’t. One’s that are 5.0 or over are considered not corrupt.
Ex.Latin America,2; Chile 7.4; Uruguay 6.2 |
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Definition
| #3 for internationalization. |
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Definition
polychronic, view time as plentiful. middle class is very important and growing.
#1 for Internationalization.
a growing powerhouse for retail. Brazilians respond well to less clutter and minimal choices in stores. |
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Term
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Definition
Behind in retail markets.
Less developed.
ex: Ghana first retail mall in 2007.
Take off stage.
Westerners bring business.
Market women
Street peddlers- in big cities.
Kiosks.
Home boutiques |
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Definition
| work 12 hours a day to sell self produced goods. |
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Definition
| Live upstairs and sell downstairs. |
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Definition
| government allows people to rent them. |
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Term
| Difference b/w concentration and fragmented retail industries |
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Definition
- Fragmented- no chains, mom and pops, individual independent shops
- Concentration- size of retailer compared to sales
-- Low concentration- not many large retailer, more mom and pops
-- High concentration- more large retailers, less mom and pops |
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Term
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Definition
Started as a way to bring peace to Europe from Aggressor nations (aka Germany)
-Brussels is the capital.
Originally called European Coal and steel Community. Goal was peace and shared commodities (Steel and coal= industrialized nation).
-Has 27 nations, 2 newest Romania and Bulgaria
-Russia and Turkey on the waiting list (technically Asian countries).
-Gradual process to unification.
-Single currency- The Euro.
-No common language.
-EU doesn’t want to incorporate Turkey due to:
-Turkey would have second highest population.
-Turkey would bring in Muslim religion.
-Armenian genocide. |
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Definition
-When the EU was formed and the euro was replaced with local currency.
-Greece could not keep up and had to be bailed out financially. |
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Term
| German legislation impacting retail |
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Definition
Packaging Law- must pay for recycling if seller of a product
-Commercial Zoning Laws- restricts to 700 square meters
-Laws against unfair competition- Can’t sell below cost.
-Sales are prohibited and only allowed in January and July. Cannot exceed 50% off.
-Shop Closing Hours Law-
-Saturday closed by 2 p.m. was amended to 8 p.m.
-Stores not open on Sundays.
- Stores usually close by 6 p.m |
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Term
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Definition
- Enjoy private labels.
- Society of classes (monarchy).
-Highest median household income.
-High awareness of luxury brands.
-Least likely to reach for their wallets.
-Prefer luxury entertainment, travel, and dining.
-very private |
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Term
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Definition
-More youth.
-94% Roman Catholic.
-Family is important.
-Don or Dona, formality is first!
-Relationships are important.
-Dress is stylish yet conservative.
-Women inside the home. |
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Term
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Definition
-Structured and analytical.
-Somewhat religious.
-Prideful of their homes.
-Private people.
-Dress is understated. |
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Term
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Definition
-Formality is way of life.
-15-64 years old is the main age bracket. |
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Term
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Definition
-Designer boutiques within department stores.
- The department store has no control over the merchandise or employees in the boutique and get 15% lower profit margins. |
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Term
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Definition
-Heavy government regulations, international expansion, market saturation.
-Shopping is popular in Brussels- arcade is the word for mall.
-Belgium is socialist so provides good benefits for employees.
-Old Central Square- “World’s Most Beautiful Square.”
-Govt. regulations-
-Most restrictive laws.
-Pro small business.
-Strict labeling laws
-Hours of operation are limited.
-Sales restricted for “seasonal renewal of stock.”
-January and July are the only months used for in store sales. |
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Term
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Definition
-Has five retailers in top!
-Tough time for retailers.
-Dept. Stores less than 4% but oligopoly.
-Product shifting due to Aldi.
-Specialty stores are popular such as Espirit and H& M (300 H&M).
-E-tailers known as brick and click.
-Credit cards not popular.
-Believe in debit cards (more practical, no debt).
-Became developed by not using credit.
-No personal checks.
-Hard discounters and concentrated dept. store.
-Overstored and severe competition.
-Shopping centers are consumers’ choice.
-Shops closing hours law ( Sat. close by 2 then amended to 8 pm, Not open on Sundays, close by 6 p.m.)
-Laws against unfair competition: can’t sell below cost.
-Commercial zoning laws- restricts stores to 700 square meters.
-January and July are the sales months and cannot have more than 50%. |
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Term
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Definition
-Strong support of small and medium sized retailers.
-“9 Streets or De 9 Straatjes” is the major shopping district.
-Street markets: Waterlooplein in Amsterdam.
- Kalverstraat- Temple of consumption (international brands).
-Magna Plaza- Converted from post office to shopping mall.
- Bridge price points (break off of popular, more pricey brands) are popular (DKNY, Mango, Just Cavalli).
- Large retailers have grown due to aggressive internalization.
-Vendex conglomerate.
-Heavy regulations:
-Hours of operation
-Pro small business.
- Establishment of law of 1937.
-VAT Tax- 19% and food is 6%.
-Internet usage (38% buy only) 1/3 browse online.
-No Amazon.com. |
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Term
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Definition
- Constant changes: deregulation of licenses.
-Very unconcentrated, many mom and pop stores.
-Dominated by small independent retailers.
-Highly fragmented: deregulation.
- Apparel retailers- North is more developed.
- Dept. Stores.
- La Rinascente and Coin.
-National chains.
- Benetton and franchises.
-Spend more on food.
-Backlash on hypermarkets.
-Multiples- 8% of market.
-E-tailers are not successful.
-Government regulations:
-Law 426/ 1971- Restrictions on products sold according to retail master plan.
- Hours are liberal.
- No pharmacy multiples.
-Retail school. |
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Term
| France Major Shopping Destinations |
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Definition
-Champ-Elysees- Trendy chain stores.
-Designer shopping.
-Avenue Montaigne- high end luxury shops.
-Flea markets- Saint Ouen (antiques, knick knacks, and discounted clothing).
-Galleria Lafayette: department store |
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Term
| E-tailing in EU nations; pure-play retailers |
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Definition
-EU has an increase in e-tailing
-Sweden #1 Internet penetration
-#2 Hong Kong
-#3 U.S.
- Italy:
-Not successful for e-tailing due to dial up.
-U.K.-:
- E-tailing launched by supermarkets.
-Amazon.com is top web only reatiler (pure play).
-Netherlands:
-Internet usage (38% buy only) 1/3 browse online.
-No Amazon.com
-Spain:
-Price is most important factor driving e-tailing.
- Mostly large ticket items.
-Pure play is non existent. |
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Term
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Definition
Retailer with only online stores
-U.K. is pure play when it comes to retailers.
-Spain= 0 pure play retailers. |
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Term
| Countries known for Entrepreneurship |
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Definition
| Uganda, New Zealand, Thailand, Venezuela, Chile. |
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Term
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Definition
| Scotland, Wales, Northern Ireland, and England |
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Term
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Definition
| England, Denmark, Sweden, Switzerland |
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Term
| Financially cannot adopt the Euro |
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Definition
Eastern European countries (Poland)
-Greece and Spain pull down the value of the Euro. |
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Term
| Top 5 GDP ranking nations |
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Definition
#1 United States
#2 China
#3 Japan
#4 Germany
#5 France |
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Term
| Tangible elements impacting retail |
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Definition
Piped Water
Flushing Toilets-some cultures don’t see toilet paper as necessary (left hand)
Electric Lighting- scheduled power outages or random outages, cannot have sophisticated retailing |
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Term
| Top 5 Countries to Internationalize |
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Definition
Brazil-just introduced the credit card
Uruguay-Most developed
Chile-Tax Breaks and large Youth population
India-predicted retail demand population will surpass China
Kuwait-Oil Trade |
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Term
| Global Retail Development Index |
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Definition
reflects dramatic changes in the global economy and the different ways in which developing countries have been affected.
-not only identifies which markets are the most successful today but also which markets offer the most potential in the future |
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Term
| Role of women and self service |
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Definition
| majority of consumers so more employment, good for retailing, communications, key to economic development |
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Term
| Spain (Retailing Internationalization) |
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Definition
-Not many government regulations.
-Sunday Trading Act, towns decide who can be open on Sunday and when and allows to be open one extra Sunday a month
-SKU tax and retirement. |
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Term
| Italy (Retailing Internationalization) |
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Definition
-Law 4261/ 1971- Restrictions on products sold according to retail master plan.
-Hours are liberal.
-No pharmacy multiples.
-Retail school. |
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