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Luxury Fashion Retailers’ Post-Entry Expansion Direction – The Evidence from China

Bai, H, McColl, J, Moore, C, He, W and Shi, J (2020) Luxury Fashion Retailers’ Post-Entry Expansion Direction – The Evidence from China. International Journal of Retail & Distribution Management. ISSN 0959-0552

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Abstract

Purpose
This empirical study, from the international retailing perspective, examines the direction of retailers' further expansion after initial entry into overseas host market in the context of the luxury fashion retail market in China.

Design/methodology/approach
The research adopts qualitative multiple case studies.

Findings
After initial entry into China, luxury fashion retailers further expand their retail operations through three directional patterns: cautious, regional and countrywide expansions. The stepwise expansion from tier-1 to tier-2 and tier-3 cities remains popular; however, the importance of the tier system of Chinese cities has been weakened because tier-3 cities in affluent regions are perceived to have more potential than some tier-2 cities in less developed regions. The retailers assess a potential local market through interrelated criteria, including location and strategic importance, economic development, available store locations and staff, a high degree of urbanisation and tourism, debatable favourable policies and offers, and popularity of e- and m-commerce. There is a positive relationship between popularity of e- and m-commerce in a city and the potential of that city to run brick-and-mortar stores.

Originality/value
The paper offers an insight into the current international retailing literature by examining the direction of luxury fashion retailers' further expansion after their initial market entry. Particularly, the research considers a set of criteria which can be used to assess a potential local market, and the impact of e- and m-commerce on local market choices for brick-and-mortar stores.

Item Type: Article
Additional Information: This author accepted manuscript is deposited under a Creative Commons Attribution Non-commercial 4.0 International (CC BY-NC) licence. This means that anyone may distribute, adapt, and build upon the work for non-commercial purposes, subject to full attribution. If you wish to use this manuscript for commercial purposes, please contact permissions@emerald.com
Uncontrolled Keywords: 1503 Business and Management, 1504 Commercial Services, 1505 Marketing
Subjects: H Social Sciences > HF Commerce > HF5001 Business
H Social Sciences > HF Commerce > HF5001 Business > HF5410 Marketing. Distribution of Products
Divisions: Business & Management (new Sep 19)
Publisher: Emerald
Date Deposited: 26 Oct 2020 12:10
Last Modified: 01 Dec 2020 10:30
URI: https://researchonline.ljmu.ac.uk/id/eprint/13912

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