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Merchandise & Apparel

Rising costs and an increase in competition has put incredible pressure on retailers for better business practices in Asia.

The market landscape across Asia has rapidly changed over the past ten years. Retailers operating in China, India, and Southeast Asia have faced the rising cost of supplies, local salaries, and real estate, which has put incredible pressure on strategic planning and more efficient operating practices.

Large supply chains, uneven wealth distributions, and regional differences in consumer habits all add an additional dimension of challenge for these markets.

In order to ensure the success of your sales, marketing, and expansion planning, you need to think and act smarter than in the past. The margin for error is much smaller than it used to be. Staying ahead of local, foreign, and online competition is an ongoing effort that needs considerable priority.

Advancements in tools and data for these regions have seen a considerable improvement. You now have access to better processes for strategic sales, marketing, and expansion planning.

Common Problems

Rapid change to Asian markets has created a challenge for retailers looking to stay competitive in areas where market potential is still high. A lack of understanding of the change has exasperated problems retailers face.

Rising Cost of Operations — The rising costs of supplies, local salaries, and real estate have applied new stress to growing retailers in the Asia Pacific region. High real estate costs in particular have put brand owners in a difficult position of making risky site selection decisions without the market research to support. Often times retailers choose to go with second rate locations based solely on the cost of rental, but at what cost to the business?

Inefficient Supply Chains — As companies have grown larger and expanded into lower-tiered cities, supply chains have become increasingly difficult to manage. Poor infrastructure and complicated regulations mean logistics costs in emerging markets are higher than those in the United States and Europe. Different customers in different regions demand varying levels of service, and supply chains must be built to accommodate this need.

Variance in Consumer Behavior — Consumer purchasing habits and product preferences vary across geographies. A lack of understanding consumer behavior (where people live, work, and shop) can cause an underlying problem planning out key functions of your business from product assortment, to marketing, to site selection and store format decisions.

Increased Competition — With an increased number of local and foreign retailers looking to capture more market share, it has become a huge challenge to stay competitive. You not only need to worry about your competition scooping up the best retail locations before you have an opportunity to act, but you need to worry about your competitors stealing share away from your established retail stores.

Focus Markets in Asia
  • China (Top 70 Cities)
    Focus on all tier 1 and 2 cities including Shanghai, Beijing, and Guangzhou.
  • Thailand (Greater Bangkok)
    Detailed retail focus in BKK with support for heavily traveled tourist destinations.
  • Taiwan (Entire Country)
    Heavy retail with nearly all multinational and local brands mapped to a point.
Key Retail Offerings
  • City Ranking
    Rank cities in terms of market potential and target customer profiling.
  • Store Network Optimization
    Identify key retail trade zones and develop a store expansion pipeline.
  • Market Potential Analysis
    Rank and prioritize markets to enter based on market size, competitor analyses, and consumer profiling.
  • Kiwi™
    Web-based retail site selection and trade area analysis software.

Solutions

In markets that are constantly growing and changing, retailers need accurate data, tools, and services to support new investment decisions that save time, cut costs, and decrease risk.

Locate Areas — It's possible to save time, cut costs, and reduce the risk for key investments by using accurate market data, tools, and services. Through the use of these data-driven solutions, you can identify high potential areas in your markets based on target consumers, retail density, and key competitors. These key areas, also called trade zones, are the hotspots consumers will travel to for shopping and entertainment. Identifying them empowers your sales, marketing, and development teams with the knowledge needed to capture more of the market.

Better manage the rising costs of operations by validating new site locations based on potential. By categorizing areas based on potential, you can help reduce the risk of high real estate costs. Also, by locating trade zones, you can discover high potential areas with lower leasing costs.

Better understand how to deal with variance in consumer behavior based on key retail trade zones. Your team can make better store format decisions and improve product assortment based on the kinds of consumers in different areas.

Locating key trade zones will help you better estimate competitor market share compared to your own. You'll also immediately understand areas where you are under-penetrated, or areas where saturation has had negative effects on your performance.

Discover Synergies — Correlation analyses of your performance data against getchee's market data can identify key market variables that appear to have positive effects on store performance. These could be a variety of factors including the distance to subway exits, bus routes, retail POI and brand synergies (less than 100M from McDonald's or KFC), geographic barriers, or road network data. Discovering these synergies can lead to better sales, marketing, and expansion planning by enabling your team with a list of market attributes to focus on during execution.

If you knew that the number one factor that drives traffic to your retail locations is the availability of public parking within 300M of your store, you'd have a very useful piece of information needed to improve your business planning.

Suppose you knew that for some reason your best performing stores are always within 100M of a subway station, and always have at least 3 fast food restaurants within 350M from your store. This is powerful information that can helpful in improving your planning and operating effort.

We'd love to understand the problems you're facing growing your brand in Asia, and more importantly how we can help. We're proud to work with the world's largest retailers, and we'd love the opportunity to work with you too!