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What is International Retailing?


Published 09 Apr 2022

What is International Retailing?

What is International Retailing?

Since the early 1990s, international retailing has been developing rapidly as one of the building blocks of the global economy. Let's take a look at the term retailing and then national retailing.


What is Retailing?

 It is known as the sale of a product or service made for the purpose of commercial profit in its most concise definition. If we look at its roots, we need to go down to the barter method that forms the basis of trade. Grocery stores, supermarkets, and shops are examples of places where retailing takes place. Despite the emergence of many different forms of retail sales such as online sales, specialized stores and discount stores, the essence of retailing seems to have not fundamentally changed. As in other sectors, there is competition in the retail sales sector, and it is known that many workplaces are closed for this reason. Although this competition arises at the price level, non-price items such as the suitability of the sales place, the selection and display of the products, the attractiveness of the workplace, and factors such as reliability and reputation also play an important role.


International Retailing

After reaching a certain saturation in the domestic market, retailers may want to expand to the foreign market and expand to the foreign market. This is internationalization, that is, international retailing. Normally, sales and headers are protected by patents, but not in retail. Before companies go international, they revise their capital according to their business positions, socio-cultural differences of countries and the need in that country's field. Therefore, internationalizing businesses primarily prefer close markets where they can adapt more easily and manage their activities more easily. These markets consist of countries that are geographically closer to the current business location. Usually, as the business experiences and matures in this process, it begins to move to more distant markets.


What are the reasons that direct retailers to international markets?

 There are many driving and attractive reasons for this, but generally, the satisfaction in the domestic market or high competition and repulsive regulations in the domestic market are the main reasons for this orientation. Of course, the impact of political and economic reasons on these reasons is huge and bad economic conditions, low growth rates, high costs, and taxes play a key role. At the same time, negative demographic reasons such as population stagnation and sociological layers such as cultural climate and heterogeneous culture appear as critical and radical realities. Offering the opposite of all these, having a politically organized and equally flexible environment; having good and regular economic conditions; Countries with growth charts also make the foreign market attractive.