International Strategy

Coach has opened a temporary online store in China. Housed on the e-commerce site Taobao Mall, the online store will operate from Dec. 12 to Jan. 15, and will offer accessories and gift items, as well as some exclusive and limited-edition products.

Wal-Mart is investigating potential corruption in its overseas practices, the company said. In a quarterly report filed with the Securities and Exchange Commission, Wal-Mart said it began an internal investigation “into whether certain matters, including permitting, licensing and inspections, were in compliance with the U.S. Foreign Corrupt Practices Act,” and that it had already taken unspecified remedial measures in relation to the investigation. The Foreign Corrupt Practices Act prohibits bribery and enforces accounting standards for U.S. companies doing international business.

Forever 21 signed an agreement to open a flagship in Beijing, one part of a plan by the fashion retailer to expand into the world’s largest emerging consumer market. The chain will open a 24,000 square-foot store in a multistory mall located in Beijing’s central shopping district, Wangfujing.

The exploding economies of Brazil, Russia, India and China (the BRIC countries) have become very attractive to e-merchants looking to get in on the ground floor of these emerging markets. Despite the fact that internet penetration remains less than 50 percent in all four markets, the sheer population of these countries points to tremendous growth opportunity. With a combined e-commerce market value already exceeding $109 billion, the BRIC markets truly have nowhere to go but up.

Western businesses can't just assume that the same old dot-com model that has worked so well in the U.S. and Europe will enjoy similar success in other marketplaces. They need to be reminded that even Western markets are unique, so the challenge is really nothing new.

Gap, which opened its flagship store in Hong Kong on Nov. 25, said it intends to increase its store presence in China by five times in the next year. The retailer said it expects to have 45 stores in China by the end of 2012.

Sally Beauty has acquired Netherlands-based Kappersservice Floral and two related companies, Hair Zone and Exphair, as part of the company’s international growth strategy.

Toys"R"Us and Li & Fung Retailing have established a joint venture for the Toys"R"Us business in Southeast Asia and greater China. Existing Toys"R"Us licensed operations throughout Asia, which includes more than 100 stores and offices across nine markets, will become 70 percent owned by Toys"R"Us and 30 percent owned by Li & Fung Retailing.

China’s economy has been booming as of late. It’s proven prosperous for a once virtually nonexistent majority of the Chinese population — its middle class. China’s middle class is growing in number, acquiring wealth and improving its standard of living at unprecedented rates. Looking out over the next decade or two, the Chinese middle class is expected to wield enormous spending power as it reaches 600 million people to 800 million people — with more than $2.7 trillion in disposable income.

Amazon has made some big changes to its website in China including a new name and a new short URL. Formerly called “Joyo Amazon” after buying out Joyo.com seven years ago in order to enter China, the name has been simplified to just “Amazon.” The new Z.cn URL serves as an easy-to-remember shortcut to the ongoing Amazon.cn homepage.