Solutions

• Identified and evaluated the potential universe of store locations for initial 3-year entry

– Conducted field work across 25 cities in China to identify all possible shopping malls and collected store performance data

– Evaluated the store performance of each shopping center based on foot traffic, purchasing power & image fit

– Validated actual availability of each shopping center; Shortlisted to ~180 shopping centers as qualified locations

– Determined regional synergies affecting roll-out timing

• Built a P&L model to validate the financial feasibility of the 3-year store roll-out plan

– Developed a store level P&L model to assess various operating scenarios and timing

– Worked with clients to evaluate entry scenarios against financial reality and internal considerations (Cost, investment, mix of store operating models, etc.)

– Final output was a store roll-out and operating model plan, with an accompanying P&L and investment business case

• Board approval was received and implementation is ongoing

Methodology

• Conducted on-site visits (including interviewed landlords) to collect shopping center positioning and performance data
• Created P&L models for each location and identified those that made sense for entry in the initial 3 years
• Worked closely with the client to develop the entry strategy and investment case that aligned with internal goals and capabilities