Summary
On top of that, the location is yet to be mature. The shop has no promotion and advertising that normally should go along with such a landing of business. Doing "luxury" business in China, Shanghai, needed a more in-depth understanding of the market and needed real professional for that market place.
Analysis
I can easily image the deal of M&S in shanghai is under a process of lacking local intelligence! For I have been worked in this sector for over 12 years. Lessons told me that you have to have an excellent business plan and a team of suitable person to run and response to the situation.
Apparently, the location is not the ideal one. It is Nan Jing road, west, but it is the portion that yet to be mature. The nearby stores are either selling cheap product or just sheerly empty!
Not talking about the product mix, Shanghai peoples really nice to see the surrounding; before they recognise you as the real luxury brands.Peoples coming from other provinces will not visit that location too! Location wrongly select make the adjustment of other marketing mix element in a higher cost.
The response of the management team should be fast either to set a clear road map toward the achieveable sales budget along with a workable marketing plan. Or to discuss with landlord(the government) to amend the rental payment table.
Besides, don't believe the success experiences of the ELITE of the management team elsewhere could replace local experts'. As they have already paid the school fees and took the lessons!
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
