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

• Hundred 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 hundred 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