Wednesday 15 March 2017

Encouraging consumers

However,  the  ecologically  sound  principles  of  the  Body  Shop  and  the  increase  in  environmental  awareness  encouraging  consumers  to  question  the  composition  of  products,  has  facilitated  the  company's  growth. Its  products  are  "perceived"  as  universal  because  they  are  "natural"  and  not  tested  on  animals. Hence,  unlike  less  focused  retailers  such  as  Marks  and  Spencer  and  Storehouse,  the  Body  Shop  can  appeal  to  a  specific  "international"  customer  and  sell  the  same  product  in  all  its  overseas  markets  without  modification.


The  Body  Shop  manufactures  and  markets  naturally-based  skin  and  hair  care  products. It  is  a  highly-focused  niche  targeted  at  the  environmentally  and  ecologically  conscious  international  consumer. In  the  niche  market  chosen  by  the  Body  Shop,  the  impact  of  culture  is  greatly  reduced  when  compared  with  other  retailers  supplying  mixed  goods. Businesses  of  all  sectors  need  to  fully  evaluate  and  understand  the  nature  and  habits  of  foreign  markets  in  their  efforts  to  undertake  overseas  expansion.

This  is  even  more  of  a  necessity  in  retailing  which  has  to  cater  directly  to  a  multitude  of  needs  and  tastes. Hence  a  retailer  expanding  abroad  must  possess  characteristics  similar  to  those  of  a  chameleon  in  order  to  blend  in  with  local  customs  and  be  fully  accepted. The  rush  by  many  retailers  to  internationalize  during  the  boom  years  of  the  1980s  led  a  number  of  them  to  employ  market  entry  and  development  strategies,  which,  in  retrospect,  were  inappropriate  both  to  the  organization  and/or  the  nature  of  the  foreign  markets.

Whether  these  retailers  have  persevered  with  their  internationalization  strategies  unchecked  or  with  modifications,  their  experiences  in  overseas  markets  have  highlighted  the  importance  of  culture,  and  the  need  to  select  the  most  suitable  market  entry  method. In  overseas  markets,  the  retailer  is  inevitably  confronted  with  a  range  of  unfamiliar  obstacles  both  internal  and  external  to  its  organization.

The  accepted  norms  of  a  country  impact  upon  the  nature  of  the  product  the  retailer  can  offer  and  the  way  in  which  the  goods  may  be  presented  to  the  foreign  public. International  retailing  is  extremely  complex  as  no  two  countries  have  perfectly  converging  characteristics. Retailers  need  to  acquire  a  thorough  understanding  of  the  implications  and  effects  of  local  cultures  on  their  foreign  operations.

Culture  is  the  basis  for  nations'  behaviour  tesco structure,  tastes,  values  and  laws. In  order  to  unravel  the  peculiarities  of  overseas  markets,  the  retailer  has  to  conduct  a  careful  cultural  assessment. The  information  gathered  should  then  govern  all  aspects  of  foreign  market  strategies. A  retailer  incapable  of  comprehending  the  cultural  subtleties  of  foreign  cultures  has  to  contend  with  complications  arising  from  well-intentioned  but  inappropriate  strategies.

The  implications  of  culture  on  the  survival  of  the  overseas  retailing  venture  are  numerous  because  culture  is  all-pervasive  and  retailers  are  obliged  to  conform  to  the  social  norms  of  every  country  entered. Failure  to  understand  and  adhere  to  regulations  dictated  by  local  tastes  and  values  leads  to  the  alienation  of  both  consumers  and  local  authorities. A  detailed  cultural  assessment  is  a  prerequisite  for  the  smooth  introduction  of  a  novel  retailing  concept  or  establishment  in  foreign  markets.

A  number  of  experienced  retailers  have  fallen  victim  to  the  dilemma  presented  by  divergence  in  cultural  characteristics. A  retailing  formula  successful  in  country  A  may  not  necessarily  be  accepted  in  country  B,  even  if  both  countries  share  a  common  heritage  and/or  language. Culture  is  thus  a  major  barrier  to  foreign  market  entry  for  the  retailer  because  social  norms  and  values  alter  continuously  and  even  the  slightest  errors  in  cultural  assessment  could  prove  catastrophic  to  the  international  retailer.

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