Introduction

Beijing Rise at SanLiTun is a new store opened in January 2022. This study will showcase the power of big-data, and using big-data to present a very detailed profile for our Rise SLT consumers. This will help our partner to have an understanding of what kind of consumer is coming to the store and be better prepared for consumer demand.

Topics cover:

1. Trade Zone/ Core Area Traffic and Traffic Profile using Location-based service data, and identify the dedicated and unique consumers for Rise SLT

2. Origin locations/ place of residence of consumer for Rise SLT and the Nike product demand study on these origins with Nike Membership and Transaction Data.

3. Rise SLT current product category, to see if our current product is accommodating consumer demand.

Data

1. Online and Offline Transaction Data 1

Online transaction data used includes all offline and online transactions from all sources, including NSO, NVS, @WO, Nike.com, App, etc.

2. Delivery Shipping Address Data 2

Delivery address data is geocoded to identify which members live within the consumer origin for SLT West

3. Member Data 3

Member data includes information about the member who live in the origin area for SLT West and made online purchases, including gender and age.

4. Location-based Service Data 4

Location-based Service (LBS) is a software service which uses geographic data and information to provide services or information to users, Major internet company combines location information with user profile data to produce LBS data. The data we queried includes traffic, gender, age, Home Location, purchase power, house price, favorite location, and many more profiles.

Method

1. Area Definition: Define SLT Trade Zone area and Rise SLT area, and then draw geospatial polygons.

2. Consumer Study: Query Traffic and Traffic Profile data using LBS API for SLT trade zone and Rise SLT. This will help us to analyze the who are we expecting to see after the store opens.

4. Consumer Origin Study: Query consumer origin using LBS data. The perform a trade zone influence direction study, consumer allocation study, and origin location Nike Member study.

5. Study on current Rise SLT product category distribution and compare it with members’ online tranactions from consumer origin.

SanLiTun Trade Zone and Rise SLT Area

Trade Zone and Rise SLT Area (SLT West)

SLT trade zone consists of 3 different areas, each is quite different from one another. They area SLT South Zone (core area), SLT North Zone, and SLT West Zone.

The SLT Trade Zone is too large, in order for us to have a better understanding of consumers going for our Rise store, we should focus the traffic in the SLT West Zone only

The boundary in red is the SLT West Zone (Rise SLT) core area we defined, the grey area is the SLT mall trade zone. our Rise SLT is located at the center of the SLT West Zone.

SanLiTun West Zone Traffic and Consumer Profile

1. Traffic and Traffic Peak

SanLiTun West Zone has about 3.9K average daily traffic for 11K square meters of area in March, comparing to Average Daily Traffic of Rise SLT in March (1.5K), the Store Engagement Rate is 39%. This shows that most of the consumer who visited SLT West entered our store, which means our traffic profile from LBS data is very representative 5. Traffic during weekend is much higher than weekday, showing a great commercial features of the area.

traffic peak is shown on the graph

Traffic peaks at late afternoon. This is helpful for host store campaign or store event. Store Events are suggested to be host during weekend late afternoon to attract natural traffic.

2. Gender

The ratio of women is 51.5%. which is 9% higher than city average, showing SLT West Zone has women consumer opportunity.

3. Age

SLT West traffic evenly distributed for young and mid-aged consumer. GenZ is at 22%, which is 10% more of the city average. For age group of 25-30, 42% higher than city average. Most of the consumer are at working age, young adults and mid-age adults. This shows that most of the SLT West consumer have potential higher spending power, and self-governed spending behavior. Spending power index shown in later section will give a direct measurement on spending/purchase power.

4. Current Life Journey

Most of the consumer in SLT West are working class, which is align with age group and is 60% higher than city average. However, college students are another high percentage group, 17.1% of college students is 47% higher than city average. This shows a great opportunity on college students and GenZ.

5. Education

SLT West consumer are well educated. 64% holds a bachelor degree or above.

6. Marriage

53.6% of the consumers are married, which is 12% less than city average. We are going to look at their children age to get kids assortment suggestion.

7. Consumer’s Child Age

This ratio shows the age of SLT West consumer’s children. Since most of the consumers are in young parents age, their children are younger. The majority of the children are toddlers and pre-school age. This shows that our store should consider to accommodate the parent’s demand by having more PS and TD kids product selections.

8. Job Industry

Media, Finance, IT and Education are among the highest share of industries for SLT West consumers.

9. Job Functions

Most of the consumers are white collar and in-office jobs.

10. Tourist or Local Residents

SLT West is a Beijing Local trade zone. only 10% of the consumer are coming from outside of the city. There is a very small tourist effect for Rise SLT.

11. Favorite Locations

TGI represents how SLT West consumer love to visit a sport location comparing to the city average. SLT West consumer, comparing to the city average, love to go to football field, swimming pool, dancing and gyms, this shows a great opportunity on these sports, especially for team sports , also shows SLT West consumers love sports way more than city average.

SLT West Consumer Spending Level and Wealth

1. Spending Level Index

SLT West consumer’s spending power is very high. The “High” level spending power is 159% higher than city average and “Second High” leve is 68% higher than city average. SLT West has a pool of consumer with very high spending potential.

2. Ways of Commute

This ratio shows what way of commute do SLT west consumers take for their daily commute when they go to work or school. It shows that most of the consumer take subway and Bus.

3. Owning a Car?

Although most of the SLT West consumer takes subway and Bus when they commute to work or school, majority of them owns a car. 78.8% owns a car, which is 24% higher than city average.

4. SLT West Consumer’s Car Brand

BWM, Benz, Bently and Audi have higher portion of car brand owners among other brand, showing a very high level of income level for SLT West consumers.

5. SLT West Consumer’s Phone Brand

Most of the consumers uses Apple and Huawei. Apple users share are 60% higher than city average, showing great income level.

6. Mall/Department Store/Shops Visit Frequency

This shows a great opportunity, many consumers love to visit Malls more than 3 times a month. Some may be caused be working class in the region, who visit malls for lunch hour, which means that our Rise not only has a high number of weekend mall shoppers, but also a high exposure to nearby office workers for high frequent visits.

SLT West Consumer Origin and Nike Member

1. SLT West Consumer Origin - Residential Location and Direction

SLT West has dedicated consumer source, it covers the city’s Eastern region. SLT West covers an unique direction of the city. Most of the consumer are coming from East of Beijing. Let’s have a closer look of the consumer source.

2. SLT West Consumer Origin - Five Major Clusters.

Five major origin clusters for SLT West consumer is identified from origin data. They are: Chaoyang Core Area, Shuangjing-Jiulongshan, Balizhuang, YaoJiaYuan and TianTongYuan. TianTongYuan is the furthest, and has a pretty high rank. Let’s take a look on how many Nike members live in these five clusters and what Nike products do they purchase.

3. Nike Members in SLT West Trade Zone Origin - Five Clusters

There are a total 16,934 Nike members who live in the five clusters.

Member Type Number of Members
Purchased within a year 10311
Team Sale 32
Total Member 16934

32 out of 10311 buying members are considered Team Sale or scalper 6, we need to be aware of potential team sale.

4. Five Cluster Nike Member Age

Age groups distributions for our Nike member is very close to SLT West. These members are potential consumer for SLT West Rise, and they are young adult, mid-age adult just like the rest of SLT West consumer.

5. Five Cluster Nike Member Gender

59.3% of Nike Member in these five clusters are male, which is actually standard ratio for Nike Members.

6. Five Cluster Nike Member Purchase Category in Nike Ecosystem

Nike member from SLT West consumer origin clusters love to purchase NSW, Jordan Products and Basketball and Kids products, as well as Running and Training related products in Nike Ecosystem. This insight will help our store to consider our Member’s demand and planning store assortment.

Rise SLT Product Sold

Rise SLT Purchase Category

Nike consumers choose to purchase more Running category in Rise SLT comparing to Nike Member in the origin purchases in the ecosystem, showing a great success in Running. Jordan, Basketball and Football are at similar level comparing to ecosystem purchase. However, Training and Kids products have opportunities. Members choose to purchase these categoies more in the ecosystem rather than in Rise SLT. Let’s take a closer look to find out why.

Rise SLT Kids Purchase Age Category

Most of the GS kids product were sold, showing a great demand in GS age. However, this does not align with the Consumer profile data, especially the Age group and Children age for our SLT West consumer. From the previous data, we know that our consuemr are young adult or mid-age adult, their children are very young. 53% of them have children that is under 6. This shows that most of the GS product in Rise SLT are purchased for adults, not for their children. This is a very commen practice since most GS size can also fit adults. However, this may overlook the true demand of younger parents, fewer selections of TD or PS product may leave them no choice but to purchase kids product online. Kids product opportunities exist.

Conclusion

SLT West has a very high daily traffic and few of them are tourist, and consumers are mostly young and mid-aged, rich, and live in Eastern part of the city. High portion of them are married and have younger children. Most of them have jobs and are white collar in-office jobs. Many of them have cars but they choose to take subway or bus to go to work. They love sports and they are frequent shoppers.

The trade zone has dedicated direction of source/origin of consumer, they live at Eastern part of the city like Chaoyang and Tongzhou There are five major consumer origin clusters identified. There are a total of 16,934 Nike members live in these clusters, and they love to purchase NSW, Jordan product, Basketball and Kids products in the ecosystem.

Based on product category purchase data for Rise SLT, SLT West consumer’s profile, and Nike Member ecosystem purchase in SLT West origin clusters, we identified that Kids product has opportunities yet to be uncovered. Along with high end price tier products and football products or events, are also opportunities based on our LBS data.

  1. Source: Nike Digital/Bricks and Mortar Order Line↩︎

  2. Source: Baozun Delivery↩︎

  3. Source: Nike Membership Data↩︎

  4. Source: Location-based Service Data API↩︎

  5. LBS Data 2022/03↩︎

  6. Scalper Detection Machine Learning Model by Yunhai Zhang↩︎