Big retail is a global business. Two-thirds of the Top 250 retailers have operations outside their home country. On average, they have retail operations in 10 countries and derive 22.5% of their composite retail revenue from foreign operations. The world’s Top 10 retailers are generally much more globally focused with, on average, operations in 15 countries.
A recent Deloitte study shows that the overall level of retail globalization has more or less stabilized in recent years as retailers have focused on improving existing operations and turned their attention to e-commerce initiatives instead. That does not mean, however, that retailers have stopped looking for new business opportunities abroad. Growth has accelerated in parts of Europe and Japan, stabilized in the US, and revived in many other emerging markets.
The map below indicates the level of attractiveness to foreign direct investments. It shows that countries in South America, Africa and most of Asia are becoming more attractive while countries like Canada, Mexico, Norway and the UK have become less attractive to foreign investors. Investors and retailers alike are looking for new markets and new formats to grow their business.
Country attractiveness for retail expansion - Variation from 2016 to 2017
Advances in Fiscalization
Retailers and technology providers face a rapidly growing and evolving set of legislation and fiscalization that impacts the go-to-market in a wide number of countries. Where in the traditional world a fiscal device or fiscal printer would be the dominant type of technology, there is a distinct expansion into new technologies as more and more types of information exchange are done electronically. With these new technological possibilities (for example, Croatia is one of the first countries in the world where fiscally relevant transactions have to be sent to the fiscal authority through the internet for authorization) solutions are starting to become more and more software-based, rather than the traditional ‘fiscal printers.’ The rate at which these changes are taking place is much faster than the typical adoption period for retailers. The changing environment requires retailers to be equipped with solutions that are adequately adaptable for whatever the future holds.
The Country Package Program
As retailers continue their global expansion, the Diebold Nixdorf Country Package program ensures a swift go-to-market in any country where previously long-lasting, project-specific implementations were faced. Our Country Packages ensure that retailers stay compliant to changing laws. Our European customers operating in the U.S. market, for example, can be assured the product will be compliant to the eWIC program, coming into play from 2020 onward. In line with this, we also make sure our U.S. customers, or any other global retailer conducting operations in Europe, remain compliant to changing fiscal legislation in Norway, Portugal, Italy, Russia, Romania, France, Germany and many other countries that have faced recent changes or will require changes in the very near future.
Upon introduction of the Diebold Nixdorf Country Package program, many of the dedicated development is executed on a project-by-project basis. By ensuring the productization of the local retail requirements, Diebold Nixdorf offers retailers a swift entry in virtually every retail market on planet Earth. As a secondary, but equally important, benefit, Diebold Nixdorf’s Country Package program comes with a watchdog function that ensures retailers taking part in our Country Package program remain compliant with local legislation during the full product life cycle. All potential changes in the software due to changing or updated legislation are covered and delivered prior to go-live.
Customers around the world have discovered the benefits of this unique offering. Currently, we have delivered or are engaged in the delivery of Country Packages to over 45 countries. These countries are spread across the globe, and all continents are represented more or less equally. Furthermore we have seen changes in fiscal legislation in about 10% of these countries, and for those retailers who have taken advantage of our solution, their efforts to stay compliant were far less cumbersome and especially less costly.
Wondering how our Country Package program could drive faster go-to-market success for your retail organization? Let’s talk about how we can help you expand to meet the demands of your consumers around the globe.