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Re-assessing strategic motives of retail internationalisation: the case of The People's Republic of China

Published Online:pp 63-70https://doi.org/10.1504/JIBED.2004.007842

China has emerged as a potential economic super-power in recent years. Its remarkable political and economic development has attracted many leading international fast moving consumer goods (FMCG) retailers. Although the motives behind retail internationalisation have been heavily researched in the last two decades, none of those studies can provide a satisfactory account of the long-term strategic objectives behind foreign direct investment (FDI) of FMCG retailers under the radically changing global retail climate. In-depth case studies were conducted in the present study. It is found that China is perceived as an important strategic location for retailers that desire to develop a strong international network, which in turn enhances their bargaining power over suppliers and strengthens their global market positions. This working explanation emerged from the study has important implications on predicting how retail internationalisation will be developed in the future.

Keywords

retail internationalisation, China, fast moving consumer goods, foreign direct investment, FDI, retail globalisation, business strategy, international business