IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v59y2021ics0969698920314089.html
   My bibliography  Save this article

Motives behind retailers’ post-entry expansion - Evidence from the Chinese luxury fashion market

Author

Listed:
  • Bai, Huifeng
  • McColl, Julie
  • Moore, Christopher

Abstract

This study aims to examine the motives behind retailers’ post-entry expansion in foreign markets. Through case studies of eleven participating luxury fashion retailers in China, qualitative data was collected from twenty-two executive interviews. Although their initial market entry was driven by both reactive (push) and proactive (pull) factors, the motives behind their post-entry expansion have become predominantly proactive, especially long-term growth strategies, the ambition to extend their brands and retail formats to more cities, and the experiences gained in entry markets. The desire to optimize the retail store portfolio through multiple channel strategies have slowed down the expansions of physical stores.

Suggested Citation

  • Bai, Huifeng & McColl, Julie & Moore, Christopher, 2021. "Motives behind retailers’ post-entry expansion - Evidence from the Chinese luxury fashion market," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
  • Handle: RePEc:eee:joreco:v:59:y:2021:i:c:s0969698920314089
    DOI: 10.1016/j.jretconser.2020.102400
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698920314089
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jretconser.2020.102400?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dwivedi, Abhishek & Nayeem, Tahmid & Murshed, Feisal, 2018. "Brand experience and consumers’ willingness-to-pay (WTP) a price premium: Mediating role of brand credibility and perceived uniqueness," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 100-107.
    2. Jan Johanson & Jan-Erik Vahlne, 2009. "The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1411-1431, December.
    3. Karine Picot-Coupey & Steve L. Burt & Gérard Cliquet, 2014. "Retailers׳ expansion mode choice in foreign markets: Antecedents for expansion mode choice in the light of internationalization theories," Post-Print halshs-01075645, HAL.
    4. Swoboda, Bernhard & Elsner, Stefan & Olejnik, Edith, 2015. "How do past mode choices influence subsequent entry? A study on the boundary conditions of preferred entry modes of retail firms," International Business Review, Elsevier, vol. 24(3), pages 506-517.
    5. Assaf, A. George & Josiassen, Alexander & Ratchford, Brian T. & Barros, Carlos Pestana, 2012. "Internationalization and Performance of Retail Firms: A Bayesian Dynamic Model," Journal of Retailing, Elsevier, vol. 88(2), pages 191-205.
    6. Zhang, Bopeng & Kim, Jung-Hwan, 2013. "Luxury fashion consumption in China: Factors affecting attitude and purchase intent," Journal of Retailing and Consumer Services, Elsevier, vol. 20(1), pages 68-79.
    7. J-N Kaprfere & Pierre Valette-Florence, 2016. "Beyond rarity : the paths of luxury desire : How luxury brands grow yet remain desirable," Post-Print halshs-01374065, HAL.
    8. Chen, Jie & Teng, Lefa & Liu, Shixiong & Zhu, Huihuang, 2015. "Anticipating regret and consumers' preferences for counterfeit luxury products," Journal of Business Research, Elsevier, vol. 68(3), pages 507-515.
    9. Ko, Eunju & Costello, John P. & Taylor, Charles R., 2019. "What is a luxury brand? A new definition and review of the literature," Journal of Business Research, Elsevier, vol. 99(C), pages 405-413.
    10. Pino, Giovanni & Amatulli, Cesare & Peluso, Alessandro M. & Nataraajan, Rajan & Guido, Gianluigi, 2019. "Brand prominence and social status in luxury consumption: A comparison of emerging and mature markets," Journal of Retailing and Consumer Services, Elsevier, vol. 46(C), pages 163-172.
    11. Liu, Sindy & Perry, Patsy & Moore, Christopher & Warnaby, Gary, 2016. "The standardization-localization dilemma of brand communications for luxury fashion retailers' internationalization into China," Journal of Business Research, Elsevier, vol. 69(1), pages 357-364.
    12. Picot-Coupey, Karine & Burt, Steve L. & Cliquet, Gérard, 2014. "Retailers׳ expansion mode choice in foreign markets: Antecedents for expansion mode choice in the light of internationalization theories," Journal of Retailing and Consumer Services, Elsevier, vol. 21(6), pages 976-991.
    13. Burt, Steve & Davies, Keri & Dawson, John & Sparks, Leigh, 2008. "Categorizing patterns and processes in retail grocery internationalisation," Journal of Retailing and Consumer Services, Elsevier, vol. 15(2), pages 78-92.
    14. Beck, Norbert & Rygl, David, 2015. "Categorization of multiple channel retailing in Multi-, Cross-, and Omni†Channel Retailing for retailers and retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 27(C), pages 170-178.
    15. Frasquet, Marta & Dawson, John & Calderón, Haydeé & Fayos, Teresa, 2018. "Integrating embeddedness with dynamic capabilities in the internationalisation of fashion retailers," International Business Review, Elsevier, vol. 27(4), pages 904-914.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tan, Yuxuan & Gong, Yanping & Xie, Julan & Li, Jian & Liu, Yongdan, 2022. "More mindfulness, less conspicuous consumption? Evidence from middle-aged Chinese consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sindy Liu & Patsy Perry & Gregory Gadzinski, 2019. "The implications of digital marketing on WeChat for luxury fashion brands in China," Journal of Brand Management, Palgrave Macmillan, vol. 26(4), pages 395-409, July.
    2. Sasa Veljkovic & Zoran Bogetic & Dragan Stojkovic, 2015. "Using Marketing Approach to Respond to Internationalization Challenges and Changes in Marketing Channels," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 11(2), pages 79-100.
    3. Sharma, Amalesh & Soni, Mauli & Borah, Sourav Bikash & Haque, Tanjum, 2022. "From silos to synergies: A systematic review of luxury in marketing research," Journal of Business Research, Elsevier, vol. 139(C), pages 893-907.
    4. Gurzki, Hannes & Woisetschläger, David M., 2017. "Mapping the luxury research landscape: A bibliometric citation analysis," Journal of Business Research, Elsevier, vol. 77(C), pages 147-166.
    5. Jell-Ojobor, Maria & Hajdini, Ilir & Windsperger, Josef, 2022. "Governance of international franchise networks: Combining value creation and value appropriation perspectives," Journal of Business Research, Elsevier, vol. 139(C), pages 267-279.
    6. Rúben Rocha & Anderson Rei Galvão & Carla Susana Marques & Carla Mascarenhas & Vítor Braga, 2020. "Cooperation Networks and Embeddedness—The Case of the Portuguese Footwear Sector," Sustainability, MDPI, vol. 12(22), pages 1-22, November.
    7. Mohr, Alex & Batsakis, Georgios, 2018. "Firm resources, cultural distance and simultaneous international expansion in the retail sector," International Business Review, Elsevier, vol. 27(1), pages 113-124.
    8. Rajesh Sharma, 2020. "Building Consumer-based Brand Equity for Fast Fashion Apparel Brands in the Indian Consumer Market," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 45(3), pages 337-365, August.
    9. Pengji Wang & Adrian T. H. Kuah & Qinye Lu & Caroline Wong & K. Thirumaran & Emmanuel Adegbite & Wesley Kendall, 2021. "The impact of value perceptions on purchase intention of sustainable luxury brands in China and the UK," Journal of Brand Management, Palgrave Macmillan, vol. 28(3), pages 325-346, May.
    10. Hajdas, Monika & Radomska, Joanna & Silva, Susana C., 2022. "The omni-channel approach: A utopia for companies?," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    11. Mainolfi, Giada, 2020. "Exploring materialistic bandwagon behaviour in online fashion consumption: A survey of Chinese luxury consumers," Journal of Business Research, Elsevier, vol. 120(C), pages 286-293.
    12. Zhou, Shuang & Blazquez, Marta & McCormick, Helen & Barnes, Liz, 2021. "How social media influencers’ narrative strategies benefit cultivating influencer marketing: Tackling issues of cultural barriers, commercialised content, and sponsorship disclosure," Journal of Business Research, Elsevier, vol. 134(C), pages 122-142.
    13. Swoboda, Bernhard & Morbe, Lukas & Hirschmann, Johannes, 2018. "International strategy’s effects on retailers’ local implementation and performance," International Business Review, Elsevier, vol. 27(3), pages 642-653.
    14. Oh, Chang Hoon & Sohl, Timo & Rugman, Alan M., 2015. "Regional and product diversification and the performance of retail multinationals," Journal of International Management, Elsevier, vol. 21(3), pages 220-234.
    15. Jiayu Qian & Jee-Sun Park, 2021. "Influencer-brand fit and brand dilution in China’s luxury market: the moderating role of self-concept clarity," Journal of Brand Management, Palgrave Macmillan, vol. 28(2), pages 199-220, March.
    16. Sanyal, Shamindra Nath & Mazumder, Rabin & Singh, Ramendra & Sharma, Yukti, 2021. "Uncertainty and affluent teenagers’ luxury buying-decision: The role of avoidance-related indecisiveness," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    17. Das, Manish & Habib, Mohshin & Saha, Victor & Jebarajakirthy, Charles, 2021. "Bandwagon vs snob luxuries: Targeting consumers based on uniqueness dominance," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    18. Ko, Eunju & Costello, John P. & Taylor, Charles R., 2019. "What is a luxury brand? A new definition and review of the literature," Journal of Business Research, Elsevier, vol. 99(C), pages 405-413.
    19. Bernhard Swoboda & Cathrin Huber & Tassilo Schuster & Johannes Hirschmann, 2017. "Corporate Reputation Effects Across Nations: The Impact of Country Distances and Firm-Specific Resources," Management International Review, Springer, vol. 57(5), pages 717-748, October.
    20. Phuong V. Nguyen & Hien Thi Ngoc Huynh & Hoa Doan Xuan Trieu & Khoa T. Tran, 2019. "Internationalization, Strategic Slack Resources, and Firm Performance: The Case Study of Vietnamese Enterprises," JRFM, MDPI, vol. 12(3), pages 1-24, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:59:y:2021:i:c:s0969698920314089. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.