How did one of the largest malls in the world get its location strategy wrong? For a retailer, brand owner or property developer, it is critical to select retail sites that would offer the most attractive revenue potential, or a platform that will strengthen the company’s brand positioning in the market. In this Research Note from Ipsos Business Consulting, we highlight the challenges of location assessment in emerging markets and describe a framework for developing a robust strategy plan.
This is the final project presentation for the Geographical information systems (GIS) class at Clark University on Spring 2014 completed by Dushyanthi Pieris. The project analyzes best site to locate a new H&M in Massachusetts.
This is the final project presentation for the Geographical information systems (GIS) class at Clark University on Spring 2014 completed by Dushyanthi Pieris. The project analyzes best site to locate a new H&M in Massachusetts.
MedITEX IVF is the number one worldwide fertility database management system.
Designed by experts for experts it provides an easy to use central information facility allowing clinic-specific customisation. It manages, documents, and helps coordinate all procedures and workflows of any Assisted Reproduction business from small private units to academic and group clinics. Our growing network of local professional partners ensure the highest quality of support is available to you speaking your language in every sense.
Use this comprehensive primer to simplify exporting, discover exportable products and services, and determine and select the best target market entry alternative while ensuring that you get paid. See the book on Amazon and learn more at www.raymondhopkins.net.
MedITEX IVF is the number one worldwide fertility database management system.
Designed by experts for experts it provides an easy to use central information facility allowing clinic-specific customisation. It manages, documents, and helps coordinate all procedures and workflows of any Assisted Reproduction business from small private units to academic and group clinics. Our growing network of local professional partners ensure the highest quality of support is available to you speaking your language in every sense.
Use this comprehensive primer to simplify exporting, discover exportable products and services, and determine and select the best target market entry alternative while ensuring that you get paid. See the book on Amazon and learn more at www.raymondhopkins.net.
Download a full version of the report at:
www.psfk.com/report/future-of-retail-2016
Built on a robust study of trends and patterns in the market, the 6th edition of PSFK Labs’ Future of Retail report offers a directional playbook for brands and retailers – defining 10 pillars to build a modern and engaging shopper experience strategy and go beyond expectations to create an enhanced shopper experience and therefore, build value, drive sales, and boost loyalty.
Featured within the 80+ page report, readers can find:
- 10 actions every retailer can adapt to redefine the shopper experience
- 20 key trends driving change in the marketplace
- Future service concepts for top brands
- Perspectives from leading retail experts across the globe
If you are interested in seeing a presentation of this report or would like to understand how PSFK can help your team ideate new possibilities for your brand, contact us at sales@psfk.com
Vol. 6 | Published November 2015
All rights reserved. No parts of this publication may be reproduced without the written permission of PSFK Labs.
From bricks to clicks - Generating global growth through eCommerce expansionJoerg Strotmann
Given the current growth trends and rising importance of eCommerce globally, retailers should consider making eCommerce a cornerstone of their international expansion strategies.Generating global growth through eCommerce expansion.
Emerging markets already offer a wide range of business opportunities
and the number of attractive business cases is growing at a rapid
pace. Population growth, urbanization, industrialization, improved
governance structures and the massive development in modern ICT
technology are making the markets even more attractive and accessible
for foreign companies...
10 ways B2B market research will make your business an international companyB2B International
Good quality market research is an invaluable strategic resource for any dynamic business, and particularly those companies with international aspirations. This presentation sets out 10 key ways in which market research can expand the horizons and operations or your organisation.
Similar to Developing Your Company's Retail Location Strategy (20)
To explore perceptions, Ipsos conducted a survey amongst a representative sample of more than 1000 Australians, which revealed that most people understand little about the range of technologies that fall under the AI banner and what they do know is informed by Hollywood — ‘the Terminator effect,’ if you like.
At a time when technology has the potential to change the way we travel, this new white paper reveals global consumer attitudes towards the prospect of fully automated cars.
Obesity is the third greatest social burden driven by human beings, after smoking and war, violence and terrorism. And while sugar consumption is far from the only cause of this, it is increasingly in the spotlight.
Foot on the Pedal - Opportunities Fuelled by a Booming ASEAN Automotive IndustryIpsos Business Consulting
ASEAN is one of the world’s fastest-growing markets, and has all the right elements for a robust automotive sector.
For more information, please email consulting.bc@ipsos.com
Indonesia, the Philippines, and Vietnam, which have led regional growth in healthcare over the past three years because of their on-going universal healthcare programmes, exhibit some of the sector’s strongest near-term potential within the region.
For more information, please contact consulting.bc@ipsos.com
Despite the relatively stable growing trend over the past few years, meat output has not managed to keep up with the consumption demand. Whilst domestic pork production is relatively sufficient for the domestic consumption demand, there is a significant shortage in the supply of beef and chicken.
For more information, please email vietnam.bc@ipsos.com
Indonesia’s DC construction market is expected to grow by 11.4% a year between now and 2020, supported by the expansion of colocation and managed hosting services provided by key DC suppliers to both large enterprises and SMEs.
For more information, please email indonesia.bc@ipsos.com
This presentation from the Ipsos automotive consultants in Korea covers:
- Domestic production sales
- Export to overseas markets
- Future technology such as connected cars, autopilot, eco-friendly cars etc
Email your questions and comments about the papers contents to korea.bc@ipsos.com
***NOTE: An English language translation of this presentation can be obtained by emailing korea.bc@ipsos.com, quoting "KAMA presentation"
It’s no secret that the marketing landscape is growing increasingly complex, with numerous channels, privacy regulations, signal loss, and more. One of the biggest problems facing marketers today is that they’re experiencing data deluge and data drought simultaneously.
Bliss Point by Tinuti addresses these challenges by providing a single, user-friendly platform for measuring what marketers previously struggled to measure. With Bliss Point, you can move beyond simply validating past actions and instead use measurement to guide real-time decision-making on what should happen next.
Join our product experts for a live demonstration of Bliss Point. Discover how it can empower your brand with the tools and insights needed to optimize each channel, across your entire media mix, and your overall brand performance.
The Future of E-commerce: first-hands insights.Solvd, Inc.
According to Statista, revenue in the e-commerce market is projected to reach US$4,117.00bn in 2024. New technologies and methodologies constantly influence how the e-commerce market develops and shapes itsthe future of e-commerce. The main questions are in the air: How can we stay aligned with e-commerce business owners and ensure our engineering services meet their evolving needs?
At Solvd, this question prompted a deep dive into the current e-commerce landscape. Our goal was to get information about the future of e-commerce directly from first-hand sources. In the course of our research, we explored:
- Portrait of respondents.
- Current challenges and pain points of the e-commerce industry.
- Emerging trends and upcoming opportunities.
- Human resource allocation for e-commerce projects.
- Solutions and actionable advice for business owners.
- The role of a reliable partner in problem-solving.
Explore, download, and share invaluable insights made by Solvd!
3. IPSOS BUSINESS CONSULTING Developing Your Firm’s Retail Location Strategy
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A cautionary tale
– all that glitters is not gold
The New South China Mall in Dongguan was an ambitious vision of epic proportions. Dubbed as the “Great Mall of China”, it was one of the largest malls in the world (twice the size of the Mall of America). It was certainly built to impress – with 5 million square feet of shopping area, a grand Arc de Triomphe, long canals with gondolas, and both indoor and outdoor rollercoasters.
Sadly, the mall did not live up to its promise. Since opening in 2005, the mall has been mostly empty – save for a handful of outlets serving a trickle of visitors.
An opportunity misplaced?
Dongguan, on all counts, is one of the upcoming industrial cities in China. Located in the Guangdong Province, it is one of the largest exporting regions after Shanghai and Shenzhen. But most of its inhabitants are migrant workers with very limited income. As one worker puts it, “People coming here to work in factories don't have the time or the money for shopping or the rollercoaster".
Another issue was the mall’s location. There is no train or direct bus service to the mall. Getting to the mall by bus could easily take more than 2 hours. The mall is also not located near a major highway, such as the G4/G15 which connects Guangzhou with Shenzhen and Hong Kong. There is no airport in Dongguan, which makes the mall inaccessible to visitors from neighbouring regions.
Location, location, location
The New South China Mall is a sobering story that underscores the importance of establishing a comprehensive location strategy, before embarking on new retail investments or expansion decisions. For a retailer, brand owner or property developer, it is critical to select retail sites that would offer the most attractive revenue potential, or a platform that will strengthen the company’s brand positioning in the market.
Location assessment, however, can be especially tricky in emerging markets.
Developments in emerging markets are usually dynamic. There are several factors which could affect the market’s economic base, which in turn have an impact on income levels and purchasing power. Examples include:
–An influx of foreign investments or tourist developments may transform a sleepy tier two city into a potential retail hot spot.
–The emergence of new economic zones or industry developments may spur local consumption.
First impressions may be misleading. Market dynamics and consumer behaviour are likely to vary across cities. City-level macro indicators (such as GDP per capita) may be skewed by the presence of a few industries, and may not be representative of the average consumer’s propensity to spend. Reliable secondary data may not even be available for tier two or three cities.
A robust location assessment methodology backed by on the ground insights is therefore critical in helping a company address the following areas:
Feasibility of establishing or expanding retail presence in this market
Developments which may affect the company’s current or future retail presence
Key retail hot spots within a given geography
Potential revenue generating or branding opportunity for a particular location
Whether the location attracts the right profile of visitors for the company’s offering
Benchmarking and prioritisation of various retail locations within a given geography
Whether the company’s current retail outlets are well- positioned vis-à-vis competitors
Optimal mix of retail stores / channel formats
A framework for developing a retail location strategy plan
1. Invest in the right markets
For a company that is new to a particular market, we start off by asking how attractive the market is to justify potential market entry / investment.
Is there a stable and sizeable market opportunity?
a)Macro-economic and environmental factors
Economic activities such as foreign and government investments or industry development are expected to
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to generate employment, thereby spurring consumer demand and spending. It is also important to assess the sustainability of economic growth and the stability of drivers that affect the future outlook.
Environmental factors comprise considerations such as infrastructure development (how will this affect accessibility), political stability (any impact on business confidence) and climate change (risk of operational disruptions).
b)Population profile
Population size, disposable income levels and consumer expenditure patterns determine a market’s addressable economic base and spending power.
These aspects need to be examined in the context of consumers’ shopping habits, as higher incomes may not necessarily lead to more purchasing in the home market. For example, Medan has one of the highest GDP per capita amongst Indonesia cities – however due to concerns about the authenticity of goods that are sold in retail stores, many locals prefer to shop overseas (e.g. Penang, Kuala Lumpur and Singapore) for international brands.
How easy / difficult would it be to seize this opportunity?
a)Maturity of the retail sector
Factors such as the availability and growth of retail space, as well as likely developments in the pipeline, will help to determine the presence of viable retail channels for potential entry or expansion. Other considerations include the depth and breadth of retail offerings, average price points, as well as the presence of international brands or retail chains.
For many foreign companies, one of the key barriers to expanding in emerging markets is the lack of retail establishments that have the appropriate size and positioning to house international brands.
b)Competitive intensity
Competitive analysis starts with identifying key players who operate in similar retail segments or product categories. The extent of competitive threat posed by these players depends on aspects such as: firm’s market share, existing retail coverage (and possible expansion plans), connections with major distributors or retail chains, aggressiveness of marketing activities, etc.
2. Establish the optimal retail footprint
Having established a particular market is feasible for entry or investment, the next step would be to proceed to identify the potential retail hot spots.
Where are the existing / upcoming retail locations?
a)Retail mapping
Identify locations with a high level of economic or retail activity; map out the distribution of existing / upcoming retail spots within each zone and select areas for in-depth assessment.
b)Profiling of selected malls / retail areas
The criteria for evaluation would depend on the company’s business profile and objectives. Profile refers to aspects such as product category, target customers, positioning, and merchandise mix. Objectives could be market entry or penetration, establishing a flagship store or new branches, acquiring an existing firm, etc.
Examples of parameters for assessment include:
–Footfall
–Mall / retail area’s positioning and shopper profile
–Expenditure of shoppers (propensity to spend)
–Tenant mix
–Presence of relevant crowd pullers (e.g. anchor tenants, attractions)
–Quality of current / potential catchment areas
–Location accessibility
–Retail occupancy cost ratios
–Competitive intensity within the area or in the vicinity
What is the optimal retail footprint?
a)Benchmark selected malls / retail areas in terms of revenue potential and brand ‘fit’
The findings from the in-depth assessment could be mapped against an opportunity matrix to assess the extent of the mall / retail area’s fit with the retailer’s branding, as well as the current / future revenue potential that it represents.
b)Analyse company’s existing retail presence vis-à-vis the selected retail spots (to what extent is the footprint optimal)
The outcomes of the opportunity assessment should conclude as to whether the company should invest or continue its retail presence in the profiled location.
3. Identify successful store formats
Once the key hot spots have been shortlisted, the next step is to determine the right retail format that would provide the best ‘fit’ with the location’s characteristics (i.e. whether the company should establish a mono-brand store, partner with a multi- brand outlet, set up a factory or discount outlet, etc). This needs to
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to be evaluated in the context of the company’s profile and objectives. For instance, a site that falls under ‘high revenue potential-low brand fit’ could still be an acceptable consideration if the company plans to offer a merchandise mix that caters to this segment (e.g. setting up a factory or discount outlet). Alternatively, a ‘low revenue potential-high brand fit’ site could provide a suitable location for the establishment of a concept store.
No money back guarantee for the wrong purchase
The cost of investing in the wrong location necessitates the need for a thorough research of market developments, the retail landscape and consumer characteristics. For emerging markets, a topline assessment may not be sufficient in providing an accurate snapshot of all the business opportunities and risks. Gathering in-depth local market knowledge and insights through on-site assessment and engagement with industry players would therefore be critical.
6. FOR MORE INFORMATION ON IPSOS BUSINESS CONSULTING, PLEASE VISIT OUR GLOBAL WEBSITE www.ipsosconsulting.com
consulting.bc@ipsos.com
Your Ipsos Contacts
AUSTRALIA
PERTH
Level 1, 1292 Hay Street
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GREATER CHINA
BEIJING
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MUMBAI
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Telephone 84 (8) 3832 982