The international expansion of fashion retailers through franchising networks: goldenpoint case study

Abstract

This dissertation illustrates the features of fashion retail internationalization through the employment of franchising agreements to understand the reasons pushing an increasing number of firms to specialize in the retail business. Actually, despite the overall economic crisis and demand contraction, many firms are investing in the optimization of their distribution strategies, looking for direct relationship with their consumer through the creation of retail channels. The first part aims at understanding the fashion retail business in terms of historical and recent developments to face the challenges from emerging markets, internet retailing and time pressure. Those factors are making it more difficult to implement an omni channel distribution strategy that effectively conveys the retailer brand image. The second part is focused on the internationalization means adopted by retailers expanding overseas, giving special attention to the franchising formula, to understand the success of this solution. The last part offers an in-depth analysis of goldenpoint company, the Italian retailer leader in the supply of tights, socks, legwear and beachwear which is undergoing a huge period of transformation, due to the separation from the previous manufacturing corporation and its specialization in the retail business. The change of the logics within the whole organization will be presented together with the expansion model adopted, based on the construction of franchising networks. Beyond the initial phases of partners selection and market analysis, more considerations will be done with respect to everyday problems in the integration and coordination between the two subject of the franchising relationships, such as the delicate transfer of information and data.