But what are the key considerations when stamping a successful global footprint?
In association with Retail Week, Addleshaw Goddard's Retail & Consumer sector team has launched an exclusive report, entitled "Retail's Top Global Hotspots – mapping your fast track to international growth", focusing on the international opportunities for a variety of retail sectors, and reviewing the main commercial considerations that need to be front of mind in order to determine success or failure.
Led by Andrew Rosling, head of AG's Retail & Consumer sector team, the report takes a look at the various expansion options available to retailers who, when faced with an uncertain UK outlook and with consumer confidence fading, are increasingly looking to international strategies to support their growth plans.
The report analyses the retail environments of five countries around the world – China, India, Germany, United States and United Arab Emirates and considers the buying patterns of consumers in each. It also details case studies of several UK global retailers who have gone on to build successful operations in each country, as well as examining their strategies and drawing on expert advice in each location – House of Fraser in China, Cath Kidston in India, AO.com in Germany, Topshop and Primark in the United States, and M&Co in the United Arab Emirates. Nigeria and the 'Stans are also singled out as being the next 'hot spots' where global retail companies are likely to focus, as these countries open themselves up to business with the benefit of added government intervention, relaxed bureaucracy and a reliance on natural resources to fuel investment and therefore a transformation of their retail sectors.
The report also examines translation factors like differing laws, cultures and IP regimes as well as the importance of mapping out structural and execution factors like supply chain planning, all of which point to a successful strategy. In addition, it deals with the correct approach when choosing a route to market; whether, for example, a joint venture or a franchise, and dependant on issues like strategic objectives and local restrictions.
Andrew Rosling said: "Some brands clearly travel well to other markets and this report outlines those international success stories that others can learn from. There is huge amounts of potential in overseas markets for retailers, as investors push for growth, but it's important for businesses to be aware of the choices of route to market, how to best execute those and crucially, what benefits consumer engagement in their chosen region."
For further details on our retail and consumer team please visit our website.