International Strategy

Amazon.com announced that developers can now submit apps for distribution this summer in the United Kingdom, Germany, France, Italy and Spain, with plans for further global expansion in the near future. Developers can get started by visiting the Amazon Mobile App Distribution Portal. The Amazon Appstore in the U.S. has grown to tens of thousands of apps and games in just one year.

Given that an increasing number of our clients are eyeing Japan’s e-commerce market, I thought it would be interesting to share some observations from my trip there. Local business perception is that the economy is struggling and will persist to struggle, but robust activity on the street and our most recent Asia Pacific Forecast belie that. There's clearly potential for growth in the market, but changes need to be made before that can happen. Based on my observations, the key inhibitors are:

Europeans, don't go looking for new kicks on eBay or Amazon.com — not if you like the brand with the three stripes. Adidas says it wants to limit all European online sales to franchised sites. The ban, set to take effect in 2013, would also affect subsidiary athletic shoe maker Reebok. 

Having spent last week at the Internet Retailer Conference & Exhibition in Chicago, I came away with three key takeaways: One, if you're an online retailer not selling internationally, particularly in Australia, what are you waiting for? You're missing out on a potential growth opportunity for your brand. Two, brick-and mortar retailers must develop a strategy to deal with "showrooming," — i.e., consumers using stores as showrooms to check out products, then buying those products online at a lower price (with free shipping, of course). Three, online marketplaces are proliferating — it's not just Amazon.com and eBay anymore — and becoming another viable channel for retailers to engage consumers and sell their products.

A report released by A.T. Kearney showed that Brazil is once again first among developing countries for global retail expansion. A.T. Kearney’s Global Consumer Institute’s 2012 Global Retail Development Index (GRDI) ranks the top 30 developing countries for global retail expansion. Brazil, which topped the list for the second year in a row, was followed by Chile, China, Uruguay and India. Botswana (No. 20) entered the GRDI ranking for the first time, signaling regional growth and the future of Africa as a significant consumer market.

As part of a steady international push ,Kate Spade New York announced that it intends to buy its Japanese joint venture partner, Sanei International, out of their 51 percent share in the jointly owned company, Kate Spade Japan. This is part of a robust international expansion,which includes recent store openings in the UK, Dubai, and Kuwait as well as further expansion into Brazil with additional store openings in Rio de Janeiro and Sao Paulo planned for this summer.

LuxeYard, Inc.,  the fast-growing boutique luxury flash sale site, today announced plans to expand to India under an exclusive licensing deal with veteran technology and retail entrepreneur Sashi Chimala. Under the terms of the agreement, Mr. Chimala will establish LuxeYard India - india.luxeyard.com - with a dedicated team to build out product acquisition, marketing and merchandising operations to manage the site. 

Blue Nile, Inc. , the leading online retailer of diamonds and fine jewelry, today announced the launch of a Japanese language version of its website. The new site allows customers in Japan to shop on Blue Nile in their native language for the first time. Second to only the United States, Japan is the largest luxury goods market in the world and accounts for 10 percent of diamond jewelry sales. "Blue Nile began serving Japan in 2008, and has developed a loyal customer following over the last four years," said Vijay Talwar, Blue Nile President.

1-800-FLOWERS.COM announced today that it's made an equity investment in Flores Online, one of Brazil's leading floral and gift retailers. 1-800-FLOWERS.COM has teamed with San Paolo, Brazil-based BR Opportunities, which has also taken an equity stake in Flores Online.

Ann Taylor, a division of New York-based Ann Inc., plans to open its first-ever international stores in Toronto. The two stores are slated to open in fall 2012. The new boutiques will be designed to feel like a stylish, modern home for an intimate shopping experience. Currently the company operates 274 stores across the United States.