An Examination of Parenting Advantages of Emerging Market Multinationals in Luxury Fashion Retailing
(A2021-92876)

AUTHORS

Huifeng Bai, Liverpool John Moores University; Julie McColl, Glasgow Caledonian University; Christopher Moore, New College Lanarkshire; Weijing He, University of Jinan, China; Jin Shi, Saitama University, Japan

ABSTRACT

From an international retailing perspective, this empirical study examines the parenting advantages offered by EMNCs in luxury fashion retail sector. Through a case study of Shandong Ruyi Group, the qualitative data was collected via ten semi-structured executive interviews. It is a win-win situation for the EMNCs of being parent groups of Western luxury fashion retailers. The EMNCs can access critical assets including advanced brand management expertise, retailing know-how, and the services skills for higher income consumers. The subsidiary retailers benefit from a high degree of autonomy, intra-group resource utilization, a competitive brand portfolio, and most importantly economies of scales in the value chain, particularly in production. The perceived risks of EMNCs ownership include potentially restricted autonomy and the uncertainty over corporate development activities in the future, as well as the risks of diluting brand image caused by the inconsistency between country of origin and country of ownership.