Hering, from a Global Production Network Player to a Regional Retail Leader

Abstract

Purpose

This study traces the internationalization strategy of Hering, a Brazilian-based apparel company active in manufacturing and retail.

Methodology/approach

The data set and analysis is presented in chronological order and decisions taken by the company are viewed based on internationalization theories. It presents two main internationalization frameworks, the production network and the value chain models.

Findings

While the company started the internationalization process in the 1960s and reached a consistent global presence in distinct markets, it has now retracted from main markets in Europe and North America and is focused on its own distribution network in South America. Hering has changed its strategy of a global production network player into a leader in the retail value chain model with regional distribution. This strategy change has been possible by valuing brand management and distribution instead of manufacturing capacity.

Originality/value

BRIC countries are known for exporting commodities but have poor performance in selling its own branded consumer goods abroad. This study provides such a rare case of a Brazilian consumer good company operating abroad.

Citation

Gehrke, G.A., Lins, H.N. and Borba, J.A. (2017), "Hering, from a Global Production Network Player to a Regional Retail Leader", The Challenge of Bric Multinationals (Progress in International Business Research, Vol. 11), Emerald Group Publishing Limited, Leeds, pp. 295-315. https://doi.org/10.1108/S1745-886220160000011016