Cookie and Privacy Settings

This website uses cookies to enable essential functions like the user login and sessions. We also use cookies and third-party tools to improve your surfing experience on preplounge.com. You can choose to activate only essential cookies or all cookies. You can always change your preference in the cookie and privacy settings. This link can also be found in the footer of the site. If you need more information, please visit our privacy policy.

Data processing in the USA: By clicking on "I accept", you also consent, in accordance with article 49 paragraph 1 sentence 1 lit. GDPR, to your data being processed in the USA (by Google LLC, Facebook Inc., LinkedIn Inc., Stripe, Paypal).

Manage settings individually I accept
expert
Expert with best answer

Luca

100% Recommendation Rate

46 Meetings

2,593 Q&A Upvotes

USD 189 / Coaching

5

Market sizing: number of customers to an H&M store / day

Hi,

I tried to estimate: “how many visitors an H&M store has per day” but had some difficulties with setting the boundaries, which I need some input on. I’m aware that several factors impact the number of visitors, such as weather, regular days versus weekends, seasonality related variations and that the number of visitors on a day depends and varies due to the time (peak hours versus non-peak hours) etc. What of these aspects, and potentially other, are reasonable to include?

However, my major issue concerned the fact that H&M is a global company, and I therefore assume the number of visitors to vary significantly between countries and cities. Should I use my own country’s market (Sweden), and accordingly a store in Stockholm as a proxy, or what market(s) could be used to represent the visitors in an appropriate way?

If anyone has a solution on this, I would be grateful!

Hi,

I tried to estimate: “how many visitors an H&M store has per day” but had some difficulties with setting the boundaries, which I need some input on. I’m aware that several factors impact the number of visitors, such as weather, regular days versus weekends, seasonality related variations and that the number of visitors on a day depends and varies due to the time (peak hours versus non-peak hours) etc. What of these aspects, and potentially other, are reasonable to include?

However, my major issue concerned the fact that H&M is a global company, and I therefore assume the number of visitors to vary significantly between countries and cities. Should I use my own country’s market (Sweden), and accordingly a store in Stockholm as a proxy, or what market(s) could be used to represent the visitors in an appropriate way?

If anyone has a solution on this, I would be grateful!

5 answers

  • Upvotes
  • Date ascending
  • Date descending
Best Answer
Book a coaching with Luca

100% Recommendation Rate

46 Meetings

2,593 Q&A Upvotes

USD 189 / Coaching

Hello,

All of your points make sense and those are all questions that you can ask your interviewer at the beginning of the case. Before starting your case, you have to clarify all the boundaries and to agree on some assumptions that you can do (for example, since you want to know an "average" customers/day it is reasonable to assume a sunny day in a spring month).

Best,
Luca

Hello,

All of your points make sense and those are all questions that you can ask your interviewer at the beginning of the case. Before starting your case, you have to clarify all the boundaries and to agree on some assumptions that you can do (for example, since you want to know an "average" customers/day it is reasonable to assume a sunny day in a spring month).

Best,
Luca

Book a coaching with Gustavo

0 Meetings

6 Q&A Upvotes

USD 149 / Coaching

Hi,

This is a very good question, as often times Market sizing / Estimation questions are stated as simply as that one: "How many visitors an H&M store has per day"

It's good practice in those situations to try to define the scope very well, i.e.:

1. Ask details about the store (Large/Small, Suburbs/Downtown, Street/Mall, country, season, etc) to show that you know that the number of visitors would depend on those factors.

2. Usually, after that, the interviewer will give you a specific set for the case, for example, "consider a regular downtown store in Stockholm on a regular day"

3. If something is still open, just keep it simple and don't make things harder for yourself =]

Hope it helps

Best

Hi,

This is a very good question, as often times Market sizing / Estimation questions are stated as simply as that one: "How many visitors an H&M store has per day"

It's good practice in those situations to try to define the scope very well, i.e.:

1. Ask details about the store (Large/Small, Suburbs/Downtown, Street/Mall, country, season, etc) to show that you know that the number of visitors would depend on those factors.

2. Usually, after that, the interviewer will give you a specific set for the case, for example, "consider a regular downtown store in Stockholm on a regular day"

3. If something is still open, just keep it simple and don't make things harder for yourself =]

Hope it helps

Best

Book a coaching with Clara

100% Recommendation Rate

58 Meetings

15,735 Q&A Upvotes

USD 229 / Coaching

Hello!

It´s a quite unique prompt, since it´s not in all H&M shops but in one in particular. Hence, it´s much easier than the normal case, in which you would later need to estimate the total number of stores.

In this case, I would use my personal experience in a shop, calculating a threshold for peak hours and % over that for the rest of the hours.

Hope it helps!

Cheers,

Clara

Hello!

It´s a quite unique prompt, since it´s not in all H&M shops but in one in particular. Hence, it´s much easier than the normal case, in which you would later need to estimate the total number of stores.

In this case, I would use my personal experience in a shop, calculating a threshold for peak hours and % over that for the rest of the hours.

Hope it helps!

Cheers,

Clara

Book a coaching with Antonello

98% Recommendation Rate

161 Meetings

5,826 Q&A Upvotes

USD 249 / Coaching

Hi,
I would consider the bootle-neck of the store (i.e. the line at the cashier) to estimate the number of customers in peak hours on an average day. Then take a percentage to calculate the non-peak hours.

Best,
Antonello

Hi,
I would consider the bootle-neck of the store (i.e. the line at the cashier) to estimate the number of customers in peak hours on an average day. Then take a percentage to calculate the non-peak hours.

Best,
Antonello

Book a coaching with Vlad

97% Recommendation Rate

410 Meetings

11,435 Q&A Upvotes

USD 239 / Coaching

Hi,

Since the question says customers in store / day, you should take one store and use your personal experience (# of people at the counter + peak off peak time assumptions) to estimate

Best

Hi,

Since the question says customers in store / day, you should take one store and use your personal experience (# of people at the counter + peak off peak time assumptions) to estimate

Best

Related case(s)

Oliver Wyman case: Full Electrons Ahead

Solved 101.5k times
Oliver Wyman case: Full Electrons Ahead Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise them on how to adjust the product offering.
4.6 5 6534
| Rating: (4.6 / 5.0)

Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise ... Open whole case

Bain Case: Old Winery

Solved 70.1k times
Bain Case: Old Winery You have inherited the “Old Winery” from your grandfather, a winery that has been family-owned for five generations and can be dated back to the 16th century. Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in a conventional way, i.e. they are not organically farmed and certified. The vine stocks are in a good condition regarding age and care. Overall, the only ¼ of the harvest is made into wine by the winery itself; the rest is sold. Your grandfather never wanted to change the image of the winery and left the managerial and administrative task to a young and energetic wine-maker. Due to the not so well-known brand, the demand for the “Old Winery” wine is currently rather low. You do not intent to run the winery operatively, given your limited knowledge of winemaking, but find the idea of owning a winery exciting. Your plan is to give the winery some fresh impetus.
4.4 5 1912
| Rating: (4.4 / 5.0)

You have inherited the “Old Winery” from your grandfather, a winery that has been family-owned for five generations and can be dated back to the 16th century. Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in a conventional way, i.e. the ... Open whole case

Roland Berger Case: Onlinestar

Solved 49.7k times
Roland Berger Case: Onlinestar Onlinestar, an online retailer of furniture and garden products (core business), has grown significantly in recent years as a result of an expansion of its product portfolio. The company mainly imports goods from Chinese manufacturers but also operates its own production of cat lavatories (special business) in Eastern Europe. The company sells its goods via Amazon and eBay, and recently via an online shop on its website. Despite this development, the financial ratios have deteriorated in recent years. In particular, the gross profit margin decreased significantly. Combined with a significant increase in shipping costs, this led to a negative result for the first time in the recently ended fiscal year and a resulting strained financial situation. Against the background of expected stagnating sales for the current financial year, short-term action is required. The board of Onlinestar asks you for an analysis of the reasons for the negative result as well as a derived recommendation for action. As a consultant, you should bring in your knowledge in online trading and develop solutions. In addition, the management board would like to receive a sales and gross profit plan from you for the current financial year.
4.3 5 1044
| Rating: (4.3 / 5.0)

Onlinestar, an online retailer of furniture and garden products (core business), has grown significantly in recent years as a result of an expansion of its product portfolio. The company mainly imports goods from Chinese manufacturers but also operates its own production of cat lavatories (special b ... Open whole case

Nutripremium

Solved 70.4k times
Nutripremium Nutripremium is a very well-known premium nutrition food company in Europe (€1 billion revenue last year). It is based in Spain and has an excellent market share not only in its home country but also in Portugal, France, Italy and Germany.  Nutripremium has two main lines of products: Vitamin-supplements for pregnant women Concentrated dehydrated aliments and vitamin pills for sick patients (with Diabetes or Cancer). The CEO of Nutripremium thinks that the market in Europe is starting to get saturated and wants you to analyze the Chinese market. What are the key areas you would explore to determine whether this is a good idea?
4.5 5 2255
| Rating: (4.5 / 5.0) |

Nutripremium is a very well-known premium nutrition food company in Europe (€1 billion revenue last year). It is based in Spain and has an excellent market share not only in its home country but also in Portugal, France, Italy and Germany. Nutripremium has two main lines of products: Vitamin-su ... Open whole case

Children vaccine

Solved 62.5k times
Children vaccine Beyer, one of the biggest pharmaceutical companies in the world, just invented a very reliable vaccine against Chickenpox, a disease that affects children in the age from 2 to 16 years. Beyer came to you wondering what their potential sales in Europe in the first year would be if they launched this product next year. They are only interested in the overall sales revenue as they already know that the vaccine can be sold for a profit. This is more meant to show them how big the volume they have to supply is and what the revenue would be.
4.4 5 2273
| Rating: (4.4 / 5.0) |

Beyer, one of the biggest pharmaceutical companies in the world, just invented a very reliable vaccine against Chickenpox, a disease that affects children in the age from 2 to 16 years. Beyer came to you wondering what their potential sales in Europe in the first year would be if they launched this ... Open whole case