“Expansion in global markets is an art and a science,” said Michael Moriarty, a partner of the retail practice at management consultant A.T. Kearney.
Success in global expansion requires the ability to strike that fragile balance, which, as Moriarty noted, isn’t always easy.
Instrumental on the science side of the equation is “attractiveness.” This includes whether the market makes sense for the brand to enter and how difficult it is to work in. Another element is whether the retail environment is overly saturated. Is there too much international competition?
A third factor, which Moriarty calls “urgency,” measures the relationship between the growth in a retail sector compared to the growth in the economy overall.
“This is an important measure because as the retail sector grows more rapidly than the economy as a whole, then choice locations can get snapped up, real estate prices may rise more rapidly and the infrastructure may get overtaxed,” he said, while stressing the importance of having “eyes in the marketplace.”
“Risk” is the final element to the science side, which includes identifying volatility and the “volatility of that volatility,” he said.
Keeping an eye on the social and political situation is key when looking to invest in foreign markets.
On the other side of the coin is understanding the intangible, or the “art” of expanding abroad.
“Where the science is what you know, the art is what you are — your organizational DNA,” he said. “And while you don’t make good decisions without the knowledge that science brings you, you definitely won’t enjoy real success unless you get the elements of art right.”
“Art” includes “love,” “genius,” “respect” and “self-knowledge,” he said, explaining that you have to have a “passion” for what you do, which requires resilience.
“There’s a lot of stuff that’s pretty hard to love about building success in global markets,” said Moriarty, who noted that obtaining success includes having “visionary leadership.”
Moreover, companies must respect or “appreciate the consumer,” meaning they should cater to different customers in their new market without straying from their brand’s DNA.
Moriarty underscored the importance of knowing your own capabilities and not becoming overly ambitious or arrogant, which is central to becoming a global company.
“This commands engagement and awareness of the facts, as well as the introspective appreciation of how we respond to them,” he said. “In many ways it’s the most important of the dimensions required to prepare for the journey of global market expansion, for without it, we cheat our brands.”
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion