Spotting Distribution Pathway Opportunities
Retailer A has an aggressive growth strategy for international expansion – specifically into the Southeast Asian market. Consumer spending across Southeast Asia (mainly Malaysia, Singapore and Indonesia) is on the rise – and Retailer A wants to capture a slice of the growing market share.
The Problem: Lack of Market Insights
The issue, however, is that there isn’t a clear pathway. The region is fragmented, comprised of a culturally diverse consumer population with different buying habits. A bestselling style in the Indonesian market, for example, may not return similar successful results in Malaysia or Singapore. International players, albeit having stronger brand awareness and larger marketing budgets, can fall behind homegrown brands that have an in-depth understanding of the local market.
To penetrate the region, Retailer A needs to be more strategic.
The Solution: Create a Strategic Distribution Model
To do so, Retailer A used Omnilytics dashboard to compare and profile the available distribution channels in Southeast Asia.
With real-time data across the Southeast Asian region available, Retailer A discovered not only the key distribution pathways for entry but also emerging multi-label e-tailers and online marketplaces driving high sell-out rates. Retailer A also spotted opportunities for category extension and pricing optimisation, which better prepared them for strategic market penetration.
Retailer A’s competitors in Southeast Asia and their assortment sizes
How competitors price their products in Southeast Asia
Instead of offering a universal experience, Omnilytics has greatly enabled Retailer A to adopt a localised approach in its brand and merchandising strategies. Local festivity trades drive peak volume sales annually in the region, a key difference compared to global practices.
Culturally-inspired retail events like Singles’ Day is another example, where sales in 2018 were reported to have surpassed Black Friday and Cyber Monday combined.
With Omnilytics, Retailer A’s team was able to gather market insights at their fingertips in a matter of hours, which otherwise would have incurred cost inefficiency on resources.
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