Hi there,

I recently had a case study during an interview with a boutique strategy consulting company. The case was 

The client would like to open a free duty shop at Hainan (a duty-free zone in China like Hongkong). 

The question is could you estimate the cannibalization impact of the opening of a free duty shop in Hainan on other big cities of China (eg: Shanghai and Beijing)? 

Clarification:

Industry of alcohol, whisky, wine and so on. (Mass products).

Current distribution channels:

B2B: on-trade (hypermarket, local tobacco boutique) and off-trade (hotels, bar, restaurants …)

B2C: online e-commerce

Currently, the sales come from 60% of Shanghai and 40% of Beijing. 

NB: 

We don't have the breakdown from B2B and B2C customers. we don't have historic data and comparison data (cities like Hongkong).

what should be the framework? How to solve it?

best regards,

A

(edited)