Industry Intelligence
Retail
A China retail plan needs a specific customer, proposition, assortment, price architecture and channel model. Management should test demand and unit economics together, including platform or store costs, marketing, inventory, fulfilment, returns and the local work required to maintain the offer.
Testing the China Retail Proposition
01
Define the target customer and occasion
Describe who buys, why, where the decision occurs, which alternative is used today and what evidence supports the need.
Customer brief: Segment / Occasion / Need / Alternative / Evidence
02
Localise the commercial proposition
Test assortment, sizing, packaging, price, content, service and promotion against customer expectations without losing the brand’s reason to exist.
Offer record: Assortment / Price / Content / Service / Brand
From Customer Insight to Channel Economics
03
Compare channel economics
Model revenue, commission, rent, traffic acquisition, fulfilment, returns, markdowns, inventory and management effort for each channel.
Unit economics: Margin / Traffic / Fulfilment / Returns / Inventory
04
Use a controlled market test
Set customer, conversion, repeat, margin and inventory measures before launch. The test should support a scale, redesign or stop decision.
Test gate: Demand / Conversion / Repeat / Margin / Stock
Retail Decisions Before Launch
Guide
Guidance on China retail customers, propositions, localisation, channels, pricing, inventory, fulfilment and market testing.
Comparison
Comparisons of online, offline and partner models across customer access, economics, control, data and operating effort.
Review
Reviews of customer evidence, assortment, pricing, channel costs, inventory exposure, returns and brand execution.
FAQ
Answers to management questions on consumers, channels, platforms, stores, pricing, marketing, stock and localisation.
Resources
Customer briefs, channel plans, assortment records, unit-economic models, test plans and performance dashboards.
Tool
Tools for customer segmentation, channel comparison, pricing, unit economics, inventory planning and test decisions.
Case
Examples of how foreign retailers tested China propositions, selected channels and adjusted their operating model.
News
Developments affecting China consumers, retail channels, platforms, pricing, competition and commercial conditions.
How to Use the China Retail Hub
Use Guide to frame the work, Comparison and Review to test alternatives and risk, and FAQ and Resources to prepare the working file. Tool and Case support the management recommendation; News confirms whether the underlying assumptions remain current.
Management should approve the target customer, local proposition, channel economics and test measures before launch. Scale should follow evidence of repeatable demand and acceptable contribution after full operating costs.