International retailing operations: downstream entry and expansion via franchising |
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Institution: | 1. Sino-German College of Applied Sciences, Tongji University, Shanghai 200092, China;2. Department of Electronics and Information, Tongji University, Shanghai 201804, China |
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Abstract: | In this paper, the shift into international franchising from other forms of operation, rather than the typical home market franchising base, is explored. The focus is international retail franchising, based on a study of the Danish clothing and footwear industry. In this study it was found that Danish companies were moving into international franchising as an outcome of a more general shift from upstream wholesaling and subcontracting activities to downstream involvement in retailing activities. Preceding establishments of foreign subsidiaries and company-owned retail operations seemed to be important in facilitating the move into franchising. |
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