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The retailer and customer relationship is favourable for organizations to flourish in any economic condition and for customers to receive quality products and services. Therefore, the right Customer Relationship Management Strategies practiced is able to create a strong relationship with customers and at the end of the day it will creates loyal customers. This will subsequently increase company's profitability regardless of economic condition. This study was conducted to examine the CRM strategies practices among retailers. A total number of 420 questionnaires were distributed to four selected retail companies in Shah Alam and 304 (72%) questionnaires were returned and used for the analysis. Based on the findings, it was found that Operational Excellence is the most effective CRM Strategies that led to customer loyalty in retail industry in Shah Alam, Malaysia. Whereby, product leadership less used by the retailer in CRM strategies. The researcher believes that the customer felt that they need to trust the company first before they can really commit and be loyal to the company. The findings of this study benefit the organization in many ways such as by using this study as a guideline to conduct business to achieve organizational goals and at the end of the day, creating customer loyalty. However, future research should include other the retail companies in Selangor and other states in Malaysia.
Purpose
– Uppsala internationalisation theory is highly utilised due to its simplicity and applicability. However, there are contrasting results on its assumption that firms follow a gradual internationalisation process. Literature shows that firm strategies (e.g. targeting a niche market) and firm resources (e.g. brand image and asset specificity) may decrease barriers of entry. Global fashion retailers possess these characteristics and may not follow a gradual internationalisation pattern. Therefore, the purpose of this paper is to examine whether fashion retailers that target a niche market, have a strong brand image and asset specificity will follow a gradual internationalisation pattern suggested by Uppsala.
Design/methodology/approach
– Two aspects of internationalisation (speed of internationalisation and market selection) were analysed. Market selection was measured by three aspects of distance (geographic distance, economic distance, and culture distance). Data were collected utilising secondary sources and internationalisation patterns were calculated using existing formulas.
Findings
– Overall, results provided partial support for Uppsala model. After cautious expansion early in internationalisation, fashion retailers experience a period where rapid expansion exists. During initial internationalisation, geographically and economically close markets were chosen, which mirror the Uppsala model. However, no incremental patterns were observed thereafter. In addition, after initially moving to culturally close countries, firms moved to countries with close cultural proximity to each other rather than close to home market.
Research limitations/implications
– The findings are based on three cases of fast fashion retailers; thus, for further generalisation, if the findings will be applicable to other fashion firms which have different strategies and resources needs to be examined.
Originality/value
– This study is one of the first attempts to research the applicability of Uppsala model to fashion retailers. By investigating fashion retailers that target niche markets, have strong brand image and asset specificity; the paper adds additional empirical evidence of situations where internationalisation does not follow the linear pattern that Uppsala model argues.
