Shop Opening: Considerations For Market Capacity Assessment

Macro analysis and industry analysis are the precondition of all market analysis. The current price competition in clothing market is extremely fierce. The fundamental reason is that the supply of homogeneous products market has been seriously saturated, which inevitably leads to low price competition.

The industry environment is often the fundamental factor for an enterprise to win in the end, and industry analysis is often the most difficult aspect in the field of market research.

For example, the proportion structure of a region's population will determine the overall level and structural proportion of local clothing consumption.

The overall market of clothing products can be subdivided because of the differences between consumers and users' needs.

There are four kinds of variables that cause the difference of consumer demand, namely geographical variables, demographic variables, psychological variables and behavioral variables.

In practice, enterprises usually use relevant variables to segment the market rather than adopt a single variable.

Based on these variables, market segmentation results in four basic types of market segmentation, namely, geographical subdivision, population segmentation, psychological subdivision and behavior segmentation.

Analysis of market potential can only be done according to the target.

The customer groups to collect different data as a basis for decision-making, the same data for different positioning of the clothing brand is also important.

3) collect data correctly.

When some enterprises are doing market capacity analysis, because of their enthusiasm for the new market, there are too many perceptual components in the analysis, often unconsciously raising the expected value of the market potential, showing that some of the estimated data is obviously more than the actual situation.

Business is much more, while adverse factors or risk factors are artificially avoided.

In addition, sometimes some data need to be corrected.

For example, when analyzing the income level of a population, the average income level of a certain area in the business circle is usually used. The statistics often are some surface data, which may be quite different from the actual ones, because there will be a considerable proportion of gray income in some industries or individuals.

For example, per capita GDP basically shows the development level of a region, but it can not fully show the living standard of the people in this area, while per capita savings and per capita disposable income can show the residents' purchasing power in this area.

4) avoid simple data analysis.

Simple data analysis is only to predict data from data.

On the surface, it is very scientific. Many market researchers are very demanding data correctness, and then predict the future market potential according to the well-known methods of least squares, factor analysis, cluster analysis and so on.

In fact, the future must not be analyzed solely with existing data.

Even for 1 relatively saturated markets, if a brand has a competitive advantage comparable to its opponent, it may also mean a huge market opportunity.

For a specific clothing brand, when carrying out the market capacity assessment, the various factors involved are very complicated, which include both the macroeconomic situation and the local economic environment, as well as the influence of various unpredictable factors.

In the two regions, the market share of each brand is always in dynamic competition and change. Therefore, we must consider the changing trend of the competition structure among brands.