The role that branding plays in the internationalisation of fashion retail firms based in a small country like Malta

Abstract

With the world rapidly becoming a global village, global retailers have had to start adapting to the different fashion patterns and cultures found in different target markets. Globalisation has reduced the barriers to enter new markets whilst, on the other hand, has also contributed to increased competition amongst firms. Firms use different modes of entry which differ from one market to another. The five different modes of entry are exporting; licensing; franchising; joint venture and wholly owned subsidiary. This study addresses the internationalisation theories which were created to explain four core theories applicable to this study ‘Internationalisation Process Theory’ (Johanson & Vahlne, 2009), ‘International New Ventures’, ‘The Opportunity-based view of firm internationalization’ and Dunning’s ‘Eclectic Paradigm’. It is essential to create a strong brand which would impact customers’ decisions and also create a brand value which is tied with a name or a symbol. The literature collected has helped the author develop the questions for the case study. The main argument of branding in internationalisation is tied with the branding strategies that Maltese fashion brands are taking to penetrate overseas markets and compete with well established brands. The findings resulted in 3 main themes that represented the branding efforts in the internationalisation of the fashion industry. The three themes include the Maltese fashion industry along the years, the internationalisation process and the branding efforts in the market place. The study illustrates in detail how Maltese fashion brands tackle domestic and overseas competition by using branding as a main core strategy in the internationalisation process. Some recommendations were also provided based on the findings.