Wednesday, 2 March 2011

Online first international expansion

Zara have announced the launch of transactional web-sites in Denmark, Norway, Sweden, Monaco & Switzerland on March 3rd.  This is an underused internationalisation strategy, to establish the brand in a country on-line and ‘test’ the markets acceptance of and interest in its products and approach.  Most large retailers jump straight in with both feet with very significant capital investments setting up stores & very often making fundamental mistakes which either prove costly or fatal leading to market withdrawal.  This cautious approach has a great deal of benefits – comparatively very low cost, potentially less damaging to the brand, provides a platform to learn the market and make necessary adjustments to the offer, and of course on-line customer feedback is embedded allowing the brand to really use their consumer and viewing non-consumers to help inform their practice.

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