Retailing innovations in a globalizing retail market environment

Reinartz Werner, Dellaert Benedict, Krafft Manfred, Kumar Vibhore, Varadarajan Rajan


Abstract
In recent years, the combination of economic growth and population growth in emerging markets and less developed markets has accelerated the progression of globalization of retailing and globalization by retailers. The challenges faced by global and globalizing retailers (retailers who currently have or intend to establish a market presence in mature markets, emerging markets and less developed markets) can be more daunting compared to those faced by firms in other industries such as automobiles, steel, and computers. Retailing innovations that are responsive to the characteristics of distinctive national markets and broader aggregations of markets such as mature, emerging and less developed markets are critical to the success of global and globalizing retailers. Against this backdrop, this paper focuses on retailing innovations in the context of a globalizing retailing environment. It attempts to shed insights into the characteristics of retailing innovations conducive to superior performance in distinctive national markets and across broader aggregations of markets. Towards this end, we first examine the environmental conditions of markets in different development stages, namely mature, emerging and less developed markets, and explore consumer based, industry based, and legal/regulatory based challenges faced by globalizing retailers in these markets. Second, we show how these challenges can be transformed into opportunities with retailing innovations. We conclude with a roadmap for future research and present propositions on future development with respect to retailing innovations in these markets. © 2011 New York University.

Keywords
Emerging markets; Globalization; Innovation; Mature markets; Retailing



Publication type
Article in Journal

Peer reviewed
Yes

Publication status
Published

Year
2011

Journal
Journal of Retailing

Volume
87

Start page
53

End page
66

Language
English

ISSN
0022-4359

DOI

Full text

Affiliation
Georgia State University; Erasmus University Rotterdam; Texas A and M University; Universität zu Köln; Westfälische Wilhelms-Universität Münster