With over 188, 000 registered enterprises, the retail industry is one of the most lucrative and promising economic sectors in the United Kingdom (Wood and McCarthy, 2013).
In general, the retail industry in the United Kingdom includes both food and non-food items.
It is concerned with all types of enterprises that sell their goods directly to consumers, including very large chains and other department shops, as well as independently owned stores and other virtual retailers (Burt and Sparks, 2003).
The retail industry is one of the most innovatively constructed industries in terms of information and technology infrastructure.
The industry has one of the best e-commerce platforms that sell not only to local citizens but also to the international community (Centre, 2016).
Statistical evidences from researches conducted reveals that the ecommerce platform in the retail industry accounts to about 11% of the world total online sales, precisely in retailing industry. It therefore goes without saying and appreciating that by and large, the retail industry forms one of the most innovative, and highly technological and sophisticated industry in the UK economy (Ellis-Chadwick, 2006).
Customary, the UK retailing industry has got many braches both within and internationally making it one of the key contributors to the Gross domestic product (GDP), a good examples of such retail stores which is performing well both locally and globally is the Tesco Company having the largest occupied retail space (Muylle and Basu, 2004).
Various researches conducted in this sector sharply indicates that the industry approximately contribute to the economy with about £17.5bn collected from taxes in the industry. In terms of investment, the retail industry accounts to over 12% of the total investment in the UK. On other hand, in regard to employment statistics, the industry provides employment to over 2.4 million people both directly and indirectly (Yehia et al., 2014).
What next? Strategies and objectives for internationalization
After observing the critical role played by this industry in the UK economy, it is prudent enough for us to explore some of the few strategies that are being enterprised by the stake holder in order to keep it abroad. Below are some of the strategies and the main objectives that are being contemplated upon to drive the industry into the global business.
Capitalizing On Internet And E-commerce
The stakeholders in the industry are coming up with the best online platform that can be used to reach many people interaction both through virtual and non-virtual platforms. The omni- channel is used to deliver goods to customer using mobile devices and other electronically gadgets (Duke, 1992). The ecommerce platform is now hugely used to promote products worldwide.
Promote Local Investment
As part of attracting more international players in the industry, the stakeholders including the government is encouraging the local people to increase their investment in the industry. To add on this, the government in partnership with the private investment sector is promoting intensive research and development in this sector. This is to find right skilled personnel running the industry effectively (UK retail industry: International action plan, 2014)
Aggressive Marketing of the Industry Overseas
The industry through government support is embarking on aggressive marketing plan to market their luxury segments externally in the global markets. The industry is also using UK ministers, ambassadors and other trade envoy to reinforce the reputation of the UK retrial industry in overseas market (UK retail industry: International action plan, 2014).
Enhancing Supply Chains
The shift in retail business from west to Asian countries is the very reason why stakeholders in the retail industry in UK are fighting to come up with new supply chains. This is done so that they come into terms with foreign producers and serve the client effectively. The east has now become one of the most potential destinations for UKs retail products. This thus call for new and proper ways of dealing with them,
UK Retail Marketing Product Mix
The marketing mix of any products includes the 4ps namely: product, price, place and promotion. Proper management of these components will dictate the selling of a product in any industry whether locally or internationally. The UK retail industry has mostly dealt in food products and its market mix is briefly discussed under.
Product
The main product in this industry is food products. Most retails store .this involves customized brands from companies like Tesco which are being sold to the public locally and oversees. The major foods in these stores are wholefoods that supports healthy living. The food products are designed to meet consumer needs and specifications (Porter and Smith, 1993).
Price
Retail companies in UK offer one of the completive prices for their products. Consumable food stuffs are friendly priced giving consumers a wider choice of purchasing value at a cheaper price (Connolly and Prothero, 2003). The industry also offers loyal customers with numerous great deals like point rewarding for shopping with them (Smith and Sparks, 2009). A good example is the Tesco Company (Doherty and Ellis-Chadwick, 2009).the company has developed an extensive program to be handling and rewarding clients who are loyal to their products.
Place
The industry has strategically located stores country wide and oversees. These stores are convenience to its consumers (Musson, 2003).
Promotion
As part of increasing sales, the industry has effectively advertised the food products in their stores. This done online and other readily accessible media to publicize the products and their stores.
Challenges of going international
Culture complexity. Different cultures have different taste and preferences toward similar or same product. Language barrier is also another key issue when it comes to international business. Failure to effectively communicate will distract business processes. Trade restrictions such as licenses and other official bureaucracies are also likely to affect business going abroad.legtal requirements and taxation policy may also affect a business from going international. Different countries have different tax law which may require huge tax pay from an international investor’s .This likely to affect their financial statements.
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