Retailers looking to break into international markets must do their homework before they make a major financial commitment, delegates at Retail Week Live have been told.
Representatives from Boots, Debenhams, Aurora Fashions and UKTI stressed the need to fully understand where the opportunities for expansion lie and to appreciate the cultural differences that exist between the UK and overseas markets.
“We preach the message research, research, research,” said Fred Bassnett, retail sector specialist for UKTI. “After that we preach the message about resource and then finally you have to resolve any problems that may emerge.”
Debenhams international director Francis McAuley said there are a number of stages the retailer goes through before deciding whether to proceed in a new overseas market. “The first box you need to tick is scale. Then you look at barriers to entry, and if the barriers are OK you then ask is there space for you in the market. If there is then you go for it.”
Understanding the culture of the country you’re entering is vital to successful international expansion, added Mike Shearwood, chief executive of Aurora Fashions. Shearwood gave the example of a Saudi Arabian store where police insisted a mannequin was removed from the window display because its nipples were too pointy. “It’s these details that you overlook but they catch you out all the time,” he said.
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