Introduction

A New flagship store - Rise at XuJiaHui is about to be grand opened at XuJiaHui core business area. This data project studies the XuJiaHui consumers, in many innovative ways using Big Data.
Topics cover:

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

2. Competitors within the XuJiaHui Trade Zone.

3. Origin locations of consumer for XuJiaHui and the Nike product demand study on these origins with Nike Membership and Transaction Data.

4. Comparable Trade Zone - HuaiHai Trade Zone study to identify the uniqueness of XuJiaHui Trade Zone.

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 XuJiaHui

3. Member Data 3

Member data includes information about the member who live in the origin area for XuJiaHui 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.

5. Point of Interest Data

Point of Interest Data (POI) is a collection of geospatial points that represent a place like store, bus stop, hospital, or any location in China.

Method

1. Area Definition: Define XuJiaHui Trade Zone and Core Area, and then draw geospatial polygons.

2. Competition Study: Using POI Data, filter all the sports brands stores coordinates and then geopatial join the XuJiaHui Polygons, which results a list of competitor stores in the trade zone. We can use this data to analyze competition situation in the Trade Zone.

3. Consumer Study: Query Traffic and Traffic Profile data using LBS API for XuJiaHui trade zone and core area. 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 HuaiHai Trade Zone using LBS data and make an origin comparison and profile comparison to test the uniqueness and dedicated XuJiaHui consumer source.

XuJiaHui Trade Zone and Core Area

Trade Zone and Core Area

According to the Shanghai City Planning, XuJiaHui Trade Zone boundary is between Guangyuan Road, YiShan Road, TianYaoQiao Road and ZhongShan West Road. A polygon was created for the trade zone. please see the below map, the XuJiaHui planning trade zone is in gray color.

The boundary in red is the core area we defined. It contains all the major malls within XuJiaHui intersection. Also, our location for XuJiaHui Rise is shown within the core area.

Competition

The points shown on the map are the competitors within the trade zone. There is a cluster of sports related stores in the south of the trade zone, which is right next to the stadium. These competitors are small and local individual sports shops. However, the number of competitor shops are much higher in the core area. Adidas is the most frequently seen brand in the area.

A list of competitor shops below are produced for readers.

XuJiaHui Core Area Traffic Grid

Each box in the grid represents traffic flow index. Box with redder color represents higher traffic flow in the area. As showing in the map, most of the traffic are concentrated at HengLong square across our store, and to the east of our store. However, since there is ease of access to our store from across the street, there will not be a problem for our consumer to cross the street and get to our store. Besides, our store is located at the intersection with tons of natural traffic, and located at the center of traffic distribution. The traffic grid shows a great potential for Rise location in attracting enough traffic

XuJiaHui Core Area Traffic and Consumer Profile

1. Traffic and Traffic Peak

XuJiaHui Core Area has about 115K average daily traffic 5. Traffic during weekday is slightly higher than weekend, showing both heavy office and commercial features of the area.

traffic peak is shown on the graph, due to heavy office and commercial property of the area, the the peak is around lunch hour and after work hour

Traffic peaks at noon and keeps at higher level during afternoon hour. Store Events are suggested to be host during weekday after work hour, or during weekend afternoon in order to attract natural traffic.

2. Gender

The ratio of man and women is even at 50%. However, a 50% of women ratio is 11% higher than city average, showing XuJiaHui Core Area’s women consumer opportunity.

3. Age

XuJiaHui traffic is not young. The distribution shows a very evenly distributed age group. GenZ is at 21%, which is close to city average. most of the consumer are at working age, young adults and mid-age adults. This shows that most of the XuJiaHui 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 XuJiaHui are working class, which is align with age group. However, college students are another abnormally high group, 15.7% of college students is 107% higher than city average. This shows a great opportunity on college students. Consumer Origin study in later section will explain why college student share is high for XuJiaHui.

5. Education

XuJiaHui consumer are well educated. 60% holds a bachelor degree or above.

6. Marriage

57% of the consumers are married, which 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 XuJiaHui 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

Finance, Education, IT and Media are among the highest share of industries for XuJiaHui consumer.

9. Job Functions

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

10. Tourist or Local Residents

XuJiaHui is a Shanghai Local trade zone. only 14.4% of the consumer are coming from outside of the city. There is a very small tourist effect for XuJiaHui.

11. Favorite Locations

TGI represents how XuJiaHui consumer love to visit a sport location comparing to the city average. XuJiaHui consumer, comparing to the city average, love to go to swimming pools, golf course, skiing, dancing and gyms, this shows a great opportunity on these sports, also shows XuJiaHui consumers love sports way more than city average.

XuJiaHui Consumer Spending Level and Wealth

1. Spending Level Index

XuJiaHui Core Area consumer’s spending power is very high. The “High” level spending power is 190% higher than city average and “Second High” leve is 33% higher than city average. XuJiaHui has a pool of consumer with very high spending potential.

2. Ways of Commute

This ratio shows what way of commute do XuJiaHui consumer take for their daily commute when they go to work or school. It shows that most of the consumer take subway, which is 23% higher than city average.

3. Owning a Car?

Although most of the XuJiaHui consumer takes subway when they commute to work or school, majority of them owns a car. 66.6% owns in car, which is 15% higher than city average.

4. XuJiaHui Consumer’s Car Brand

Audi, Benz, Buick and BMW have higher portion of car brand owners among other brand, showing a high level of income level for XuJiaHui consumers.

5. XuJiaHui Consumer’s Phone Brand

Most of the consumers uses Apple and Huawei. Apple users share are higher than city average.

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.

XuJiaHui Consumer Origin and Nike Member

1. XuJiaHui Consumer Origin - Residential Location and Direction

XuJiaHui Trade Zone has dedicated consumer source, it covers the city’s southwest region. And there is an obvious trend for consumers who live close to subway line 9. XuJiaHui is a semi-local trade zone, covers an unique direction of the city. Most of the consumer are coming from southwest of Shanghai. Besides XuHui district, MinHang and Songjiang are major source of the consumer. Let’s have a closer look of the consumer source.

2. XuJiaHui Consumer Origin - Six Major Clusters.

Six major origin clusters for XuJiaHui consumer is identified from origin data. They are: SiJing, JiuTing, SongJiang College Town, TianLin, XuJiaHui West Residential Area, and XuJiaHui East Residential Area. SongJiang College Town is the furthest, and has a pretty high rank. This explains why we see so many college students in the XuJiaHui trade zone. They are coming from as far as SongJiang. Let’s take a look on how many Nike members live in these six clusters and what Nike products do they purchase.

3. Nike Members in XuJiaHui Trade Zone Origin - Six Clusters

There are a total 14,332 Nike members who live in the six clusters.

Member Type Number of Members
Purchased within a year 8915
Team Sale 27
Total Member 14332

27 out of 8915 buying members are considered Team Sale or scalper 6, we need to be aware of potential team sale.

4. Six Cluster Nike Member Age

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

5. Six Cluster Nike Member Gender

60% of Nike Member in these six clusters are male, which is actually standard ratio for Nike Members.

6. Six Cluster Nike Member Purchase Category in Nike Ecosystem

Nike member from XuJiaHui consumer origin clusters love to purchase NSW, Jordan Products and Training Products, as well as Kids related product. This insights will help our store to consider our Member’s demand and planning store assortment.

HuaiHai Trade Zone Comparision

The previous sections explained why XuJiaHui trade zone has unique and dedicated consumers from southwest of the city, and the profile of our potential consumers are special. let’s take a look at HuaiHai trade zone, which is located at north of XuJiaHui, and compare it with XuJiaHui to emphasize the uniqueness of XuJiaHui.

1. HuaiHai Trade Zone and Consumer Origin

HuaiHai trade zone consumers are coming from all over the city, mostly concentrated at the west of Huangpu River. It is considered as city destination trade zone. Unlike XuJiaHui, HuaiHai’s direction stretch to far north into BaoShan. HuaiHai does not have dedicated source of consumer. Most of these consumer origins are also origins for many other trade zone. XuJiaHui on the other hand, has dedicated source of consumer as we see in the previous sections. And these consumer origins does not overlap with HuaiHai’s consumer origin.

2. HuaiHai Trade Zone Consumer Gender

Comparing to XuJiaHui, Huaihai’s consumer women ratio is lower, and closer to the city average. This confirms that XuJiaHui trade zone has more women than other trade zones.

3. HuaiHai Trade Zone Consumer Age

HuaiHai Trade Zone has a similar age group distribution comparing to XuJiaHui.

4. HuaiHai Trade Zone Spending Power index

HuaiHai Trade Zone, as a city destination, has a higher portion of “High” spending power consumer and less “Mid” level comparing to XuJiaHui.

Conclusion

XuJiaHui is a semi-local, subway driven trade zone. It has a very high daily traffic and few of them are tourist, and consumers are mostly mid-aged, moderately rich, and live in southwest 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 to go to work. They love sports and they are frequent shopper.

The trade zone has dedicated source/origin of consumer, they live next to subway line 9 from southwest of the city like SongJiang and MinHang. Many college students travel a long distance to XuJiaHui. There are six major consumer origin clusters identified: SiJing, JiuTing, SongJiang College Town, TianLin, XuJiaHui West Residential Area, and XuJiaHui East Residential Area. There are a total of 14,332 Nike members live in these clusters, and they love to purchase NSW, Jordan product and Kids products.

XuJiaHui is very different comparing to HuaiHai trade zone. HuaiHai is a city destination. HuaiHai consumers are coming from all over the west of Shanghai. There is no overlap to the XuJiaHui trade zone for southwest part of the city.Although new stores are being opened in HuaiHai trade zone, it does not overlap with Rise XuJiaHui consumer origin, which means they are serving two groups of different consumers. HuaiHai also has fewer women comparing to XuJiaHui, but higher spending power in general.

  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 for 2021/11↩︎

  6. Scalper Detection Machine Learning Model by Yunhai Zhang↩︎