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With Asia's rapidly changing and developing cities, domestic firms or retailers who launched their network in Asia a few years ago will need to re-assess current footprints to keep up with the unprecedented urbanization rate in the region.
Taking the above sample network of retail doors in Shanghai as an illustration, the image shows the individual stores' market holding capacity in Chinese Yuan and relative market share. Understanding a store's performance compared to trade zone market potential gives brand owners the ability to identify which stores are underperforming or outperforming potential. As an example, door X in TZ-12 should be maintained as it is reaching targeted market share in a high potential trade zone. Both doors Y and Z are underperforming, however TZ-02 has a much lower market holding capacity, so investment into door Y in TZ-23 will yield a much higher return.
Know the size and distribution of market potential across target cities. Understand gap between store performance and market potential. 3-5 year future outlook on market development.
Locate market potential and prioritize trade zones for expansion. Improve asset management with objective data and analyses. Create a standardized decision making process for development.
An optimized network footprint which matches coverage with potential. Know your competitors impact on individual stores. Discover retail hotspots for new store developments. Standardized operating procedures for site selection.