“Scaling Success: How Retailers Leverage Digitalisation to Enter New Markets" - A qualitative study exploring success in market entries among digital-first retail brands originating from Sweden.

Abstract

Digitalisation in the retail industry has fundamentally changed the way brands operate, interact with consumers and enter markets. The efficiency, reach and cost effectiveness of e-commerce and digital tools have allowed digital-first SME retailers to expand quicker and further than ever before. This research explores how digitally native retail brands within the clothing and footwear sector from Sweden successfully enter new markets, exploring the role of market entry strategies, go-to-market strategies, e-commerce and digital tools and other drivers of success. A qualitative research approach was adopted, using semi-structured interviews with industry and company leaders. The data was analyzed through an abductive reasoning approach, combining both empirical data with findings from the literature review and theoretical framework. The theoretical framework was constructed by reviewing current literature, providing a foundation to guide both the interviews and interpretation of the findings. The findings of this thesis signified that successful digital-first market entries leverage lean market entry strategies in the beginning focusing on exporting through e-commerce and finding key distributors and platforms before expanding to equity methods such as flagship stores. Furthermore, choosing and timing the market were proven to be crucial factors in a successful market entry where established demand and similar customer behavior were good indicators of relevance. It was also revealed that successful go-to-market strategies leverage multichannel and omnichannel approaches to reach wider audiences including a focus on paid digital marketing, micro influencers, organic social media following etc. Other external factors also played an important role in the outcome of a market entry with the findings highlighting both success factors and challenges. The role of digital-first strategies proved to be critical, however brick and mortar retail still remains significant as physical stores play an important part in customer engagement and market presence. Finally, the findings revealed the importance of digitalisation and e-commerce in today's market entries proving that these tools not only assist companies but also allow companies to reach global audiences quickly and cost effectively without the need for physical infrastructure.