Retail Internationalization and Its Impact On the Russian Agri - Food Business

Zusammenfassung

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The internationalization process of the retailing sector is still in its turbulent starting phase. The present process of retail internationalization has created new trends in the agri-food sector such as global sourcing and retail branding. The example of Metro Group Russia underlines this point. The introduction and implementation of supply chain management concepts affect Russian agri-food business. Therefore, the aim of our article is to analyze this development. We outline the internationalization process of the retail business,and then we elaborate on the structural changes. Second, we apply this knowledge to the Russian agri-food business. We also discuss the future prospects and outlook on further development of the Russian food sector in the context of retail internationalization. Der Internationalisierungsprozess des Einzelhandelssektors ist nach wie vor in einer unruhigen Startphase. Der Prozess der Internationalisierung des Einzelhandels hat Tendenzen wie Global Sourcing und Retail Branding im Agrar- uns Ernährungssektor katalysiert. Es ist zu beobachten, dass im Zuge der Internationalisierung des Einzelhandels die Einzelhändler ihre modernen Managementkonzepte exportieren. In diesem Artikel beschreiben wir den Internationalisierungsprozess des Einzelhandels und die daraus resultierende Veränderungen für die Agrar- und Ernährungswirtschaft. Des Weiteren wenden wir die gewonnen Erkenntnisse auf das russische Agrar- uns Ernährungssektor an. Hierbei zeigen wir zukünftige Entwicklungsmöglichkeiten des russischen Nahrungsmittelsektors im Zusammenhang mit der Internationalisierung des Lebensmitteleinzelhandels auf.

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Auszug

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Retail Internationalization and Its Impact On the Russian Agri - Food Business

1. Introduction

Less than 20 years ago almost all of the world's retail firms were purely national, with a negligible share in foreign markets. Today however, the opposite is true. The ranking of the world's largest retailers by Deloitte (2005) reveals that almost all players operate in numerous countries, with noteworthy business capacity in foreign markets. However, the process is still rather new one and it is clear that the process will proceed further, but perhaps in a way that is turbulent than in the last decade.

'Western' retailers engaged in retail internationalization, are taking the business models from their home countries into the newly entered markets. Thus, one can say that modern management concepts are exported. The example of Metro Group Russia underlines this point. Since entering Russia five years ago, Metro Group Russia has already installed the Metro Asset Management, Metro Buying Group, Metro Advertising, Metro Group Logistics, and Metro Group IT. The twenty-six cash & carry markets and the three super centres carry 140,000 items that are delivered by 2500 suppliers. Only 5% of the suppliers are foreign manufacturers, and 20 % of the articles are region-specific. Thus, the Metro Group exerts a strong influence on Russian agribusiness in general and on the local agri-food sector in particular ...

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