Internationalisation of Fashion Designer Brand

Literature Review

Since Hollander (1970) introduced the subject of retail internationalisation (RI) to academic attention, literature on the subject has proliferated. Particular aspects of RI (e.g. motives - Alexander (1990); market entry method - Doherty (2000)) and the effect of RI specific retail sectors (e.g. convenience stores - Sparks (1996); supermarkets - Wrigley (2000)) have been considered. Reviewing this work, Vida and Fairhurst (1998) identified some common promoters and inhibitors of RI, while Treadgold (1989) and Williams (1991) used the traditional business management literature to classify some critical success factors (CSFs) relating to international retail businesses.

However, this work has been disjointed, lacking a conceptual underpinning and theoretical framework (Akehurst and Alexander, 1996; Evans et al., 2000; Sternquist, 1997). Indicative of this has been the failure to connect aspects of RI and the contingent CSFs with specific retail sectors. This deficiency is addressed by identifying the CSFs applicable to international fashion retailers and considering how they are distinguishable from those pertinent to other international retailers. With these in mind, ways in which an international fashion retailer may manipulate its marketing mix in response to CSFs are suggested. This is illustrated with a model highlighting the contrasting strategies employed by two such companies.

Akehurst and Alexander (1996) reviewed the RI literature and identified six emergent themes:

1. What is the internationalisation of retailing?

2. Who are the international retailers?

3. Where do retailers internationalise?

4. Why do retailers internationalise?

5. How do retailers internationalise?

6. When does internationalisation occur?.

From a commercial perspective, the last four questions are especially relevant. For the purposes of the literature review, all six questions are considered in context of fashion retailers, before the last four are used to construct a model for commercial application in the conclusion.

Diverse definitions of RI are often compromised by poorly explained terminologies and the inappropriate application of manufacturing terms to a service enterprise (Akehurst and Alexander, 1996; Alexander, 1997; Brown and Burt, 1992; Helfferich et al., 1996; Pellegrini, 1994; Sparks, 1996). Focusing on specific features of RI, Treadgold (1989) defined international retailing as having “visible” and “invisible” dimensions. Dawson (1994) elaborated, describing the “invisible” aspects of RI as being the international sourcing of products and services and the cross-border transfer of management expertise in the form of managerial policies or technical skills (Kacker, 1988). In these terms, fashion retailers are prevalent “invisible” international retailers, manufacturing abroad (Crewe and Lowe, 1996; Dawson, 1993; Moore and Burt, 2001; Stone, 1987) and transferring management skills (Laulajainen, 1991, 1992; Moore and Burt, 2001) without necessarily operating stores. Marketing skill transfer in the development of internationally appealing brands is cited as critical in the fashion market (Burt and Carralero-Encinas, 2000; de Chernatony et al., 1995; Moore et al., 2000).

Authors have attempted to classify international retailers according to their size, retail format and market strategy (Alexander, 1997; Hollander, 1970; Salmon and Tordjman, 1989; Treadgold, 1988). However, research has shown that the defining features of international retailers are not in their tangible characteristics; rather they are in the ...