What are global retail categories? Describe these categories giving examples
What will be an ideal response?
The categories for global retailing can be visualized in the form of a matrix. One axis of the matrix represents private or own-label focus versus a manufacturer brands focus. The other axis differentiates between retailers specializing in relatively few product categories and retailers that offer a wide product assortment. IKEA, Benetton, and Gap fall under quadrant A, which contains global retailers with a niche focus as well as an own-label focus. In quadrant B, the private-label focus is retained, but many more product categories are offered. This is the strategy of Marks & Spencer whose strategy, Michael private label, is found on a broad range of clothing, food, home furnishings, jewelry, and other items. Retailers in the upper right quadrant offer many well-known brands in a relatively tightly defined merchandise range. Such businesses include Toys "R" Us, Virgin, and others. These types of stores tend to quickly dominate smaller established retailers by out-merchandising local competition and offering customers superior value. Carrefour, Walmart, and Promodes and similar businesses fall in the fourth quadrant. They offer the same type of merchandise available from established local retailers. Thus, there are different strategies that can be followed based on different criteria.
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