Distribution Sizing in China – Food & Beverage

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Project: Distribution Sizing in China 

Distribution sizing in ChinaDescription:  The client was preparing the launch of a new product in China (high-end spirit). In order to understand the Chinese market, and more especially the distribution environment in China, the group came to Daxue Consulting with two questions: where should we sell our product in China, and ultimately, what is the selling potential for our product in China?

Results: Daxue Consulting answered in 2 steps:

  • Identification and benchmark of high-end spirits in China in order to understand through which distribution channels are similar products sold in Tier-1 and Tier-2 cities.
  • Bottom-up distribution sizing approach through data collection at the end of the value chain (retailers, distributors, restaurants, etc.).

Thanks to the various interviews with key point-of-sales in China, it is possible to determine quantities sold and SKU of each company in the period, and therefore forecast/assess the potential for the client’s new product in China.