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Article
Publication date: 16 April 2024

Huifeng Bai, Jin Shi, Peng Song, Julie McColl, Christopher Moore and Ian Fillis

This empirical study aims to examine luxury fashion retailers' localised multiple channel distribution strategies in China.

Abstract

Purpose

This empirical study aims to examine luxury fashion retailers' localised multiple channel distribution strategies in China.

Design/methodology/approach

Through case studies of 15 participating retailers, qualitative data were collected from 33 semi-structured interviews.

Findings

Strong impacts of internationalisation strategies, distribution strategies and channel length towards multiple channel retailing are revealed. Multi-channel retailing is widely employed by firms who have entered China and further developed their businesses through local partnerships and adopted a selective distribution strategy via relatively longer channels. Omni-channel retailing is only suitable for the few retailers using an exclusive distribution strategy through direct marketing and wholly owned customer relationship management. As a dynamic transformation from multi- to omni-channel retailing, cross-channel retailing is adopted by those who are withdrawing from local partnerships and shifting to wholly owned expansions and operations in host markets.

Research limitations/implications

The results are potentially challenged by relatively small sample size.

Practical implications

Practitioners are suggested to adapt multiple channel retailing to their international expansion strategies, distribution strategies and channel length in the host markets.

Originality/value

This paper contributes to the literature in both multiple channel retailing and international retailing by offering insights into the motives, development patterns and suitability of multiple channel retailing in the international retail marketing context.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 22 September 2021

Huifeng Bai, Julie McColl and Christopher Moore

From an international retailing perspective, this empirical study aims to examine luxury fashion retailers' changing marketing strategies in China.

4150

Abstract

Purpose

From an international retailing perspective, this empirical study aims to examine luxury fashion retailers' changing marketing strategies in China.

Design/methodology/approach

Using case studies of 14 luxury fashion retailers, qualitative data were collected via 31 semi-structured executive interviews.

Findings

Both standardised global and localised multinational marketing strategies were found to have initially been employed by luxury fashion retailers entering into China. Subsequently, localised multinational strategies became increasingly important for their post-entry operations and business development, particularly in terms of their product strategies. More specifically, as well as the introduction of Chinese brand names, product design has been adapted according to Chinese market conditions, and product portfolios have been adapted to satisfy regional differences. However, localised product sourcing in China is far less common.

Research limitations/implications

As the findings are generated from China, they may not explain luxury fashion retailers' marketing strategies in other markets. Despite the relatively small sample size, the 14 luxury fashion retailer case studies originate from across a wide range of countries, retail formats and ownership structures and are therefore considered to be varied enough to represent the market.

Practical implications

The study offers practitioners insights into the success that can be generated by the manipulation of marketing strategies, particularly product strategies, within the world's second biggest luxury market.

Originality/value

This paper extends the current international retailing literature by examining and comparing the motives and practices of luxury fashion retailers and the increasing localisation of their marketing strategies in China as they move from initial market entry into their post-entry operations.

Details

International Marketing Review, vol. 39 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 22 November 2017

Huifeng Bai, Julie McColl and Christopher Moore

The purpose of this paper is to examine internationalising luxury fashion retailers’ entry and post-entry expansion strategies in mainland China.

6909

Abstract

Purpose

The purpose of this paper is to examine internationalising luxury fashion retailers’ entry and post-entry expansion strategies in mainland China.

Design/methodology/approach

The study adopts a pragmatic mixed-methods research approach, including a quantitative mail survey and qualitative face-to-face in-depth executive interviews.

Findings

Different from initial single entry methods, multiple methods are increasingly popular for luxury fashion retailers’ post-entry expansion in mainland China. Although directly controlled expansion strategies have become significant, local partnerships are still important and omnichannel distribution strategies are rapidly growing.

Research limitations/implications

The findings were generated in mainland China only.

Originality/value

This work provides an understanding of luxury fashion retailers’ activities in the Chinese market from both macro and micro perspectives. It examines luxury fashion retailers’ initial entry strategies, as well as their post-entry expansion strategies in mainland China. Few studies in the area of international luxury fashion retailing have employed a mixed-methods approach with this number of participants.

Details

International Journal of Retail & Distribution Management, vol. 45 no. 11
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 8 July 2021

Huifeng Bai, Weijing He, Jin Shi, Julie McColl and Christopher Moore

This empirical research, adopting an international retailing perspective, aims to examine the parenting advantages offered by emerging market multinationals (EMNCs) in luxury…

1117

Abstract

Purpose

This empirical research, adopting an international retailing perspective, aims to examine the parenting advantages offered by emerging market multinationals (EMNCs) in luxury fashion retail sector.

Design/methodology/approach

The researchers adopted a qualitative case study, and the qualitative data were collected through ten semi-structured interviews with senior managers.

Findings

It is a win–win situation for the EMNCs as parent groups of Western luxury fashion brands, as the EMNCs can access critical assets including advanced brand management expertise, retailing know-how, and the services skills needed for higher income consumers. Meanwhile, the subsidiary brands benefit from a high degree of autonomy, intra-group resource utilisation, a competitive brand portfolio and most importantly economies of scales in the value chain, particularly in production. The perceived risks of EMNCs ownership include potentially restricted autonomy and the uncertainty over corporate development activities in the future, as well as the risks of diluting brand image caused by the inconsistency between country of origin and country of ownership.

Research limitations/implications

Very few EMNCs have moved into luxury fashion retailing to date, which means that the sampling frame was small. The findings were generated from China, which is perceived to be of considerable psychic distance in terms of culture and policies compared to other emerging markets that have been heavily influenced by colonialism.

Practical implications

This paper suggests that practitioners, particularly EMNCs, support their subsidiary luxury fashion brands through parenting advantages and develop their own high-end fashion brands through internationalisation.

Originality/value

This empirical study contributes to the current international retailing literature by offering in depth insights of parenting advantages offered by EMNCs in luxury fashion retailing. It also enriches the EMNC literature, which has mainly adopted an international business scope, by extending this understanding into luxury fashion retailing.

Details

International Journal of Retail & Distribution Management, vol. 50 no. 1
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 20 November 2020

Huifeng Bai, Julie McColl, Christopher Moore, Weijing He and Jin Shi

This empirical study, from the international retailing perspective, examines the direction of retailers' further expansion after initial entry into overseas host market in the…

1624

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.

Details

International Journal of Retail & Distribution Management, vol. 49 no. 2
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 23 October 2018

Huifeng Bai, Julie McColl and Christopher Moore

The purpose of this paper is to examine luxury fashion retailers’ ownership structures at their internationalisation strategies in Hong Kong and mainland China.

1804

Abstract

Purpose

The purpose of this paper is to examine luxury fashion retailers’ ownership structures at their internationalisation strategies in Hong Kong and mainland China.

Design/methodology/approach

This study adopts a pragmatic mixed methods approach, comprising a quantitative mail survey and ten qualitative executive interviews.

Findings

This study found that group-owned luxury fashion retailers usually encounter fewer difficulties when internationalising into mainland China than their individually owned counterparts because of parenting advantage, particularly functional and service support. However, the success of some individually owned brands has demonstrated that branding strategies, management culture, international experience, financial power and local partners’ know-how are as important as parent company support and although the luxury market in mainland China has become developed, many foreign luxury fashion retailers still enter Hong Kong prior to mainland China. However, in relation to post-entry management and expansion strategies, the importance of Hong Kong has weakened because the emergence of capital cities, the growth of the middle class and fewer political restrictions.

Research limitations/implications

The research findings are generated in the context of Hong Kong and mainland China, they are therefore limited in explaining luxury fashion retailers’ internationalisation strategies in other markets. Despite the challenge of the sample size, 63 out of 130 survey respondents (48.5 per cent response rate) and ten interview participants are felt to be sufficient to represent the market.

Practical implications

This research can be used by practitioners when assessing appropriate entry strategies to the Chinese luxury fashion market.

Originality/value

This is a pioneering study of the Chinese luxury market from the perspective of international retail strategies. It differentiates between Greater China (including Hong Kong, Macau and Taiwan) and mainland China, and examines the impact of luxury fashion retailers’ ownership structures on their internationalisation strategies.

Details

International Journal of Retail & Distribution Management, vol. 46 no. 9
Type: Research Article
ISSN: 0959-0552

Keywords

Content available
Book part
Publication date: 18 May 2023

Abstract

Details

Pioneering New Perspectives in the Fashion Industry: Disruption, Diversity and Sustainable Innovation
Type: Book
ISBN: 978-1-80382-345-4

Abstract

Details

Pioneering New Perspectives in the Fashion Industry: Disruption, Diversity and Sustainable Innovation
Type: Book
ISBN: 978-1-80382-345-4

Keywords

Article
Publication date: 27 September 2021

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

181

Abstract

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Design

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

EMNCs are finding themselves ideally placed to dominate emerging markets in the luxury fashion industry, and challenge established MNCs.

Originality

The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Article
Publication date: 20 May 2022

Huifeng Pan, Zhiqiang Liu and Hong-Youl Ha

Prior hospitality studies have reviewed review trustworthiness and perceived price as predictors of restaurant selection. However, the impacts of these two factors may vary by…

1525

Abstract

Purpose

Prior hospitality studies have reviewed review trustworthiness and perceived price as predictors of restaurant selection. However, the impacts of these two factors may vary by sales promotion and customer types. This study aims to determine whether sales promotions and customer type are the key elements that facilitate behavioral intentions by moderating the linkage between perceived price and behavioral intentions as well as the linkage between online review trustworthiness and behavioral intentions.

Design/methodology/approach

Analysis of the responses of 533 individuals familiar with the Michelin Guide for restaurants in Seoul provided evidence supporting a sales promotion theory wherein promotions signal benefits in consumers’ minds.

Findings

The findings show that when perceived price is positive and the trustworthiness of online reviews is high, repeat customers prefer mixed coupons to price discounts. Notably, the results indicate that when the trustworthiness of online reviews is high, first-time customers also prefer mixed coupons to price discounts. Furthermore, the findings suggest that negative evaluations of perceived price increase the impact of mixed coupons by signaling to first-time customers that given restaurants’ offerings provide monetary benefits regardless of their intentions to revisit said restaurants.

Research limitations/implications

The study findings provide insights that should help managers better understand various levels of promotion. Managers can design their pricing strategies to strengthen customers’ motivations to visit their restaurants – the very thing customers often seek in sales promotions.

Originality/value

This study provides indisputable evidence for a sales promotion theory, wherein promotions signal benefits in consumers’ minds; however, it also shows that first-time and repeat customers do not respond equally to sales promotions.

Details

International Journal of Contemporary Hospitality Management, vol. 34 no. 10
Type: Research Article
ISSN: 0959-6119

Keywords

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