Franchising is fast becoming one of the most popular entry mode strategies for international retail companies when moving into international markets. Academic research, however, has only recently begun to examine international franchising within the context of retailer internationalisation. A major gap in the literature is the nature of the international retail franchise relationship and, in particular, the mechanisms used to control and co-ordinate the international franchise network. This paper reports the findings from an in-depth, ethnographic study of the internationalisation activity of one retail franchise company and examines the extent to which the marketing channels and agency theory literatures can, in practice, explain power and control in international retail franchising.
Purpose -Employing the qualitative method, this paper sets out to investigate the role and function of flagship stores as a market entry mechanism employed by luxury fashion retailers. Design/methodology/approach -The paper employs an interpretive research position, utilising qualitative techniques in the form of semi-structured interviews with élite informants. In total, 12 luxury fashion retailers form the empirical focus of the work. Findings -The paper identifies the defining characteristics of luxury retailers' flagship stores. It finds that luxury flagship stores represent a strategic approach to market entry that is employed to support, enhance and develop distribution activities within a foreign market. The interdependence of flagship stores and the wholesaling method of distribution is highlighted. The importance of the flagship store in reinforcing and enhancing the retailer's luxury status and enhancing and maintaining relationships not only with customers but also with distribution partners and the fashion media is found to be significant. Practical implications -The paper provides practical information to luxury retailers on the role and importance of flagship stores as a method of entering international markets. Originality/value -Flagship stores are a pivotal aspect of any luxury fashion retailer's internationalisation strategy. For the first time in the literature, the paper provides insights into their form and function and an understanding of why they are crucial to the international development of luxury retailers despite their prohibitively high cost.
The relationship marketing paradigm has emerged as a major tool by which marketers may examine and conceptualise relationships with consumers, however its application to the business‐to‐business dimension of retailing has been largely neglected. The current work examines one particular aspect of business‐to‐business marketing: the franchisor‐franchisee relationship in the context of international fashion retailing. This relationship is examined in the light of the relationship marketing literature, with particular reference to the relevance of the marriage analogy. Employing a case study approach, this paper considers international fashion retailers' response to the need to develop business‐to‐business relationships in international markets via the franchising mode of market entry. The paper concludes that the marriage analogy is useful in the context of franchise relationships if properly defined by core and intended relationship benefits.
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