The Replication of Retail Fashion Formats into Foreign Countries

The goal of this study is to examine retail format replication in international retail fashion firms. The foundation of the study is the identification of format replication patterns and strategies with a connection to the success of international fashion retailers. A dynamic dimension over time complements the study. Fashion retail firms are generally understood to be heavily internationalized and are expected to replicate their entire format unchanged in foreign countries when pursuing a global strategy. Such firms’ format replication strategy—defined in terms of format change patterns and the factors motivating the format change decision—substantially contributes to their success and is primarily associated with strong standardization and global strategy (Goldman 2001). This thought-provoking statement will be traced in a theoretically grounded and empirically tested study that examines the development of fashion retail firms over a period of time. A qualitative approach on the chief executive level (CXO) is used as an appropriate method to understand the behavior of firms and managers over the five years analyzed (Chen, Murray and Jones 2007).

This study covers international format replication in the retail industry. Thus, definitions of the central components are provided below.

Various definitions of retail internationalization frequently consist of opaque terminology and the unfortunate use of manufacturing expressions to service firms (Zavrsnik 2007). Aiming on specific features of retail internationalization, international retailing is defined as having “visible” and “invisible” dimensions (Wigley 2009; Zavrsnik 2007, p. 13). The visible dimension are retail offers (Manrodt and Vitasek 2004). “The ‘invisible’ aspects of retail internationalization are defined as being the international sourcing of products and services and the cross-border transfer of management expertise in the form of managerial policies or technical skills” (Zavrsnik 2007, p. 13).

As discussed, the next chapter will focus on answering the research questions from a theoretical perspective. In particular, contingency and configuration theory, format replication and flexible format replication will be employed. However, the strategy dimension must be extended with the integration-responsiveness framework. All three theoretical approaches will be discussed in general and subsequently reflected in the specified research questions which subsequently lead to specific proposals.

To appropriately answer the propositions, the approach of a qualitative study at two points of time was chosen. A qualitative approach is applied because qualitative data are collected to learn more about that which cannot be directly observed and measured and to be able to access the opinions and choices of core decisions makers (CEO’s) in international retailing firms. This procedure also allows for analysis of the development and success of retailing firms—overall and in a country-specific environment—over a period of five years. I am aware of the possible disadvantages of qualitative empirical research (e.g., less structured methods and less standardized questionnaire-based results). However, qualitative research allows for a longer relationship with each respondent and results in deeper insights that have a greater potential for new insights (Aaker, Kumar and Day 2001, p. 184-202). In this study, large international retail firms were examined, and personal interviews were conducted at the headquarters of these international firms.

In summary, the findings of this doctoral thesis illuminate the complexity of retail format replication in foreign countries. Retail format replication is an important topic and a multifarious research issue. This study surveyed how retail fashion firms transfer their retail format into foreign countries. This research topic is particularly relevant for the majority of fashion firms, which are not only increasingly shifting their focus to foreign markets and replicating retail fashion format elements from their home markets but also confronting challenges in determining which retail offer to adapt and how to adapt it and which background processes to standardize and how to standardize them in order to attract local customers and manage costs. This subject is also important because past studies do not conclusively indicate which retail fashion format elements should be replicated, standardized or adapted (Swoboda and Elsner 2013, Alexander 2008; Goldman 2001) and which replication strategy is the most successful abroad (Jonsson and Foss 2011).