International Retailing

The international retailing industry is comprised of any activity that consists of the sale of products and services to international consumers. Retailers purchase products in bulk from manufacturers, importers, or wholesalers, and then separate the products before proceeding to sell the goods directly to consumers. International retailers must be mindful of local regulations as they pertain to the locations of their retail outlets, the difference that may occur in taxation, and the variations in consumer practices in different countries.

Successful strategies for an international market include gaining a local view of consumers, and taking a global approach in business practices.

This industry is comprised of three predominant sectors: multiline retail, specialty retail, and internet retail. Multiline retailers are made up of general merchandisers and department stores. This segment of retailers offer varied products, and may also include warehouse clubs and superstores. Specialty retailers focus on one section of the retail market at a time, such as apparel, computer and electronic, home improvement, sporting goods, or auto parts, amongst others. Internet retailing is inclusive of every sale made through the internet.

Demand in the international retailing industry is influenced by interest rates, consumer confidence in products, and the personal income of the consumers. Independent companies rely on effective management of supply chains and efficient promotion of their products to appeal to consumers. Small businesses focus on retailing unique products, providing an outstanding retail experience, offering excellent consumer services, and prioritizing their business to a specific locale. Large companies utilize the advantages they have in the areas of purchasing, merchandising, and distribution of their products.