Comment: International expansion is important for long-term growth

At next month’s World Retail Congress, four retailers will be honoured with membership of the World Retail Hall of Fame: Sir Stuart Rose, Coach chairman and chief executive Lew Frankfort, Harvey Nichols owner Dickson Poon and Sir Paul Smith.

What connects them, apart from all having made an undeniable contribution to retailing, is that they have in different ways all been very clear about the importance of international expansion to their companies’ long-term growth.

International expansion is in the spotlight with the news that fashion retailer Blue Inc, under Sir Stuart’s chairmanship, is pushing overseas. It was Sir Stuart who declared that previous management’s decision to pull Marks & Spencer out of Europe had been “tragic” and reversed that strategy.

Frankfort and Poon realised years ago that luxury was an international market and have driven their businesses and brands into key growth areas around the world. That may also have its ups and downs, as shown by investor reaction to slower growth in markets such as China. But Coach would be a far smaller, poorer business if Frankfort had kept it ring-fenced in America, for example.

No one doubts the difficulties of taking a business internationally and there isn’t a single key to success. Sir Paul has built a powerful brand and a British success story in many markets and Paul Smith will reopen in mainland China before the end of the year.

There is still much to learn from his driving philosophy about having to really get under the skin of your chosen market.

Take Japan, a market he has always been passionate about to the extent that the brand now has 200 shops – far more than in the UK.

In his newly published book, Paul Smith: A to Z, he explains how he has visited Japan “very humbly” since 1980 and saw back then that you have to fully understand the culture before you can hope to succeed.

Success in Japan, he says, can be put down to “hard work, regular visits and not just wanting to do business there”. That deceptively simple message can be applied to any retailer starting an international journey.