Market sizing is a technical and long process aimed at estimating the number of potential buyers for a product or potential users of a service. Through a market sizing service, companies can learn more about the total size of their target market, their major competitors, identify new opportunities and determine market segments to focus on.
How Daxue Consulting’s team determines market size in China
Estimate supply (top-down)
Our research team collects prices of the product or service concerned in the Chinese market, and studies the financial reports of your competitors.
Assess demand (macro)
Daxue’s team uses data and statistics gathered through desk research to estimate the number of potential users of your product or service in China.
Study distribution (bottom-up)
Regarding online distribution, our researchers study analytics data of Chinese e-commerce platforms and interview top managers and sales managers of major players on the market concerned.
When to use market sizing in China
Market sizing in China is useful when comparing different markets, exploring new topics or industries, and identifying potential opportunities or challenges. It saves time and money by leveraging existing information.
However, to ensure reliability and relevance, market sizing should be complemented by methods like surveys, interviews, or focus groups that consider local context and consumer behavior. These additional research methods provide more accurate insights and validate assumptions made during market sizing.
