An interview with RAJIV LAL and WALTER J. SALMON, faculty cochairs of the Senior Executive Seminar for Retailers and Suppliers—an Executive Education program offered by Harvard Business School.

Q: Retailing initiatives in emerging global markets like India and China are getting a lot of attention. What should retailers consider as they develop their own globalization strategies?

LAL:The issue of when to get into these markets is crucial. For example, many retailers don’t plan to enter India for the next five to ten years, or China for two to three years. They ask, “Why go abroad when I have America to conquer?” But, by the time they finish conquering America, it could be too late. If retailers want to go international, they have to change their mindset. They must stop fixating on the significant management time, talent, and money required and instead start building their strategies. Retailers need to recognize that these markets are developing faster than they think.

SALMON:What is convenient for retailers may not be timely in terms of market opportunities. Retailing is not a business with a lot of intellectual property, therefore

a retailer has no long-term protection against competition. The first-mover advantage, while expensive, may be more necessary than in other industries.

Q: What other issues confront retailers exploring global opportunities?…read more

Source : www.exed.hbs.edu