Cross Border Shopping - The Brand Appeal

During the late 1990s literature began to notice the intensity of retail foreign direct investment (FDI) into the emerging markets of East Asia, Central and Eastern Europe and Latin America. Major UK brands such as Marks and Spencer, Next, Argos, Debenhams etc, all vied to be the first to take advantage of the untapped well of consumers in foreign markets through wholly owned international stores or franchises.



Since then numerous studies on the failures of UK multinationals located in foreign markets has revealed certain barriers to the processes of internationalisation. For example the difficult socioeconomic infrastructure of many African countries poses an obstacle for the multinational preference to adhering to strict standard of operation.



In 2004 Neil Coe wrote that the study of the international retailing should be expanded to include the strategies of firms without a presence in the host country. It is only then that the full extent of the internationalisation process could be appreciated.



A fitting role for the Internet.



The internet has been a major protagonist in the increase in popularity of cross-border shopping, and provides an opportunity for multinationals to get their discount brands into markets considered too hostile for physical store location. Prophetically, in January 2010 the Chief Executive of Next PLC announced that they will be moving their focus away from wholly owned international stores to direct sales over the internet. He stated:



"the internet will allow us to serve a customer base which is dispersed over a large area without the need to take on fixed assets and stock holdings in numerous locations. Whilst in any one town or city there may not be enough Next customers to justify the investment in a store, there are enough customers in a whole country to justify the investment required for us to trade online" (Source: Next plc Results for the Half Year Ended July 2010)



Neil Coe, it seems, will get his wish.





Bringing the Brand to Africa. Dedicated to using the internet to transcend national boundaries by providing a unique cross-border online shopping experience with a personal touch.