As retailers compete against each other to secure their business presence in their company's home nation, they are also adapting to the retail industry's changing environment by globally expanding through investing in international countries in order to make their business the most profitable and recognizable around the world.
Many retailers who are satisfied with the revenue their home nation's company generates do not expand globally as investing in international countries is expensive and the chance of being internationally successful is not guaranteed by the retail industry, although there are many retailers who take the risk anyway due to certain factors. Firstly, retailers are economically driven and thus, they expand globally to create a unique presence through the incorporation of something different in their newly opened store. This factor is demonstrated through the global expansion of Lush Cosmetics in Jeddah, Saudi Arabia. This United Kingdom based store opened their first store in Star Avenues Mall, consisting of only female staff. Consequently, women can enjoy the luxuries of gaining expert beauty advice and feel comfortable when trying on products recommended by Lush's all female staff ("Exciting news for Lush", 2013). Another economically associated factor leading to global expansion is the need for a brand to make an extreme appearance once again in the market after losing its place in the industry. Dunkin Donuts is making this sort of appearance in the United Kingdom with over 50 of their new stores tailored accordingly to the taste buds of people living there, after their concept failed to appeal to customers in 1990. Their retooled menu has been newly designed for local taste ...
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...they have the ability to attract customers instantly. For example, both Starbucks and Lush Cosmetics are expanding in Manhattan and Jeddah with unique innovations that do not already exist in those areas. Teavana by Starbucks is set to be a speciality store for tea lovers, already targeting one part of the consumer market causing competitors to innovate their products so that the well known Teavana by Starbucks does not dominate their sales. In the case of Lush Cosmetics, their competitor will have to innovate their products and services twice as much to earn clients from Lush in order to gain more sales. Also, their competitor will have to constantly advertise until they gain a consumer base and develop a social presence amongst shoppers to stabilize their business presence, as Lush has already secured their reputation as a well known cosmetics retailer in Jeddah.
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