1. Assignment 2 – Task 2
Unit 6

2. From the Assignment Brief....
The Task Prepare a leaflet which uses examples of real businesses, such as Tesco’s expansion overseas, to explain three issues facing UK retailers when they decide to operate in other countries.

3. “To open a shop is easy, to keep it open is an art.”
Chinese proverb....
“To open a shop is easy, to keep it open is an art.”

4. Issues You need very deep pockets.
You need time. It takes a long time to get to any kind of profit margin.
Some retailers think because they buy goods from a certain country, they know the market. But that’s not the same as retail. Few are prepared for the vastness of the country.
All of the cities are very different in terms of spending power and taste.

5. Issues Cont..
You need to establish relationships with national and regional authorities as well as suppliers, while getting the supply chain right.
You can’t cheat your way into countries. If you dare to try, the system will chew you up and spit you out.
Second impressions are rare enough in today’s retail world and countries wouldn’t entertain the option.

6. Issues Cont...
You may need a partner to understand the local market as it varies from region to region.
Make sure partners have no history of conflict with the authorities in that country.
Regardless of whether retailers go with a partner or alone, or attempt to crack it online. It is a necessity “having a good team on the ground”.

7. Issues Cont... Metric system issues: Cultural & Religious Issues:
Shoe sizes
Clothes sizes
Inches or CM goods.
Cultural & Religious Issues:
Kosher, Halal, Beef, etc
Alcohol
Certain food preservatives

8. Chinese proverb....
“Patience is a virtue.”