Edinburgh Napier University

  Purpose – This study aims to critically examine the internationalisation process of Scottish luxury SMEs in the Malaysian market. To achieve this aim, research objectives were formulated examining Malaysia’s development in terms of luxury fashion and the lifestyle environment, and the experience of foreign trade bodies based in Malaysia in developing the above-mentioned environment. Further to this, the internationalisation process of Scottish luxury SMEs in Malaysia went unnoticed; as well as those who did not internationalise.
Design/methodology/approach – Interviews were conducted in three phases and each phase represents three separate institutions: government agencies from Malaysia (MIDA, MOTAC, and PEMANDU) and Scotland (SE); foreign trade bodies in Malaysia (BMCC, CCIFM, and ITA); and private companies based in Scotland. In addition, document analysis was conducted in supporting the interviews.
Findings and Conclusions – The findings identify Kuala Lumpur’s significant role in the development of luxury fashion and lifestyle retailing in Malaysia. Further to this, it has been found that although there is a close working relationship between the foreign trade bodies (British, French, and Italian) with Malaysian government agencies, awareness is minimal when it comes to the ‘Luxury Malaysia’ campaign. Meanwhile, those SMEs that have internationalised in the Malaysian market gave their perspectives about the chosen market entries adopted, marketing strategies, challenges and critical success factors. Findings suggest that Western brands in general are well-accepted in Malaysia – British brands in particular are viewed as prestigious in the eyes of Malaysian consumers but Scottish brands are less well known. Those companies which did not internationalise in Malaysia mentioned a number of reasons why, such as the aspect of climate, demand, and the size of company as to why they have not entered the Malaysian market.
Implications of the Findings – This study presents a strategic guideline for luxury exporters should they wish to enter the Malaysian market. Intelligence such as Malaysia’s luxury fashion and lifestyle landscape, consumers’ mentality, and their attitudes towards foreign brands are presented.
Originality/value – Local market knowledge is still important leading some to engage in partnerships to assist with rules and regulations, consumer behaviour, channels of distribution and communication strategies.
Keywords Scottish Luxury SMEs, Cultural Influences, Made in Scotland, Internationalisation, Market Entry, Malaysia, Emerging Markets, Fashion and Lifestyle Retailers