A chain store is one of a number of shops or sales outlets owned by the same person or company, each selling the same range of goods. The large chain store handles a very wide range of products, usually numbering in the thousands. Large chain stores control more than half of the retail markets in the Western countries.

Types of Chain Stores

Common types of chain store include the department store, discount store, warehouse club, catalogue store, mail order store, specialty store, and drug store.

Centralized Buying versus Independent Buying

Chain stores import goods by using either centralized buying or independent buying method. In the case of centralized buying, which is most often used, orders of the branch stores for the same item are consolidated by the central (head) office, and an order for this item is issued to the exporter. The exporter delivers the goods either to the central distribution center of the chain store---the single destination---and the distribution center reroutes the goods to the branch stores, or directly to the branch stores---the multiple destinations, depending on the sales contract.

In the case of independent buying, the individual branch stores issue the orders directly to the exporter. The exporter delivers the goods straight to the branch store that places the order.

The chain store is departmentalized according to the line of products, and each department usually has its own buyer(s). In certain countries, a buyer may handle more than one line of products. The buyer places the order either using the centralized buying or independent buying method, depending on the chain store's policy.

Overseas Buying Offices and Agents

Chain stores usually have overseas buying agents in many countries. Large chain stores such as Sears, Wal-mart, K mart, and Otto Versand, and chain store groups such as May and Associated of the U.S.A., have their own buying offices abroad. They may also need the services of the buying agents (export-traders), despite having their own buying offices abroad, so as to effectively cope with the wide range of products they need. The chain store also buys from domestic importers and manufacturers, in order to maintain a lower inventory and to take advantage of purchasing on credit.

Chain stores in Western countries often retain the services of the shipping agents, freight forwarders or consolidators to consolidate from abroad orders from different suppliers and ship them together. Some large foreign buying agents may consolidate and ship orders for the chain stores.

The swindler---scam-artist, con man, hustler, trickster, fraudster, or racketeer---leaves no mercy and knows no boundary, and preys on unsuspecting victims at any time and place. It is not uncommon in many countries to hear that a person or a business has been swindled. Many cases, usually involving a small amount, have not been reported by the victims out of embarrassment of being swindled and to avoid publicity.

The exporter must exercise extreme caution to avoid being victimized by the importer who is a professional swindler. It was publicized in certain exporting countries of the import fraud involving the phony cheques (checks) issued as payment by some importers from the Third World nations. Who would expect that the swindler will hit from a developed country and victimize the exporter from halfway around the globe?

It is necessary to socialize before starting business discussions in certain countries, particularly in Asia and the Middle East. The process of export negotiating is long usually and quite often frustrating, especially for the first order.

Export negotiation is an art. It is important to find out what the buyer really wants. Some buyers may complain a lot about the product to intimidate exporters into reducing the price. Never be intimidated by a buyer's unreasonable demands. Never beg for the order, negotiate for it.

Eye Contact, Hand Gestures and Etiquette

It is polite to look straight into the eyes during conversation, except in a few countries, for example Japan, where direct eye contact is regarded as impolite.

Avoid hand gestures as they do not have the same meaning in every country. The thumbs up and the 'O' sign---thumb and forefinger form a circle while the rest spread out---mean "okay", but they are offensive in countries such as Australia and Brazil.

Folded arms, gum chewing, hands in pocket, resting of feet on furniture, clearing the throat, and blowing the nose are signs of disrespect, arrogance and insulting in certain cultures.

Interpretation or Translation

An interpreter (translator) fluent in foreign languages at times may not be enough, especially when technical terms are involved. The accuracy of business translation is important. Varied use of terminology in different countries sometimes can have an entirely different meaning.