Retail

Building the Investment Business Case for China for a Specialty Apparel Retailer 为某专业服装零售商建立中国投资业务案例

客户是美国一家主要的专业服装零售商,希望从消费者角度评估其在中国的增长机会; 一旦其在市场上的潜力得以发掘,客户希望建立一个投资业务案例提供给公司董事会。我们模拟了客户可获得的市场和品牌在头五年的潜在销售,评估可能的运营模型并且确定最优模型,制定在中国运营所需的架构,估算进入中国市场的成本,并为客户创建P&L模型和投资业务案例,报告给公司董事会。

Background

The client, a major US-based specialty apparel retailer, wanted to evaluate its growth opportunity in China from a consumer perspective; once its potential in the market was established, the client wanted to build an investment business case for entry to be presented to the company board


Solutions

•    Modeled the addressable market and potential sales for the brand over the first five years

--- Identified the brand’s consumer in China
--- Mapped consumer purchasing behavior and purchasing power
--- Set sales targets based on competitor performance

•    Evaluated potential operating models for entry and identified optimal model

--- Evaluated competitor best practices and operating strategies
--- Evaluated Real Estate logic when working with new brands

•    Evaluated the organizational structure needed to support China launch

--- Mapped out peer organizational structures at different levels of development
--- Identified best practices given the client company’s DNA

•    Evaluated costs of entry

--- Corporate Infrastructure Costs
--- Store Build-out and Operating Costs
--- Marketing/Logistics/etc. costs

•    Supported the client to create the P&L and investment business case for presentation to the company board


Methodology

•    Approximately, 80 consumer home visits in Beijing, Shanghai and Chengdu were done to understand purchasing behavior and gauge reactions to the client’s brand

•    In-depth interviews with approximately 100 industry and peer personnel to understand best practices

•    Bottom-up data collection from  peer brands and specific real estate locations of interest in Shanghai and Beijing


Selected Findings



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