Companies already operating in China or considering doing so often subscribe to the myth that reliable, accurate data on the Chinese economy is inaccessible. But believing this misstatement can cost companies millions each year – or worse, cause them to miss out on the market opportunities that China presents altogether. In actuality, there is plenty of timely, accurate and actionable information on the Chinese economy – if you know where to look.
Currently available open data only gives a partial view into the economic environment in China – only explaining 63% of activity – hardly enough to make strategic decisions upon. Prevedere’s model, however, provides up to 94% visibility into the market. We offer exclusive insights into Chinese leading indicators like manufacturing, consumer spending and purchase intent, including:
- 146,000 data sets on economic factors
- 98,000 retail spending data sets
- 6,700 manufacturing data sets
- 2,000 data sets on consumer intent
So what exactly can be done when you combine all of this information with the power of machine learning and our predictive analytics engine? Let’s look.
A leading global beverage manufacturer came to us after calculating just how significantly forecasting errors were affecting profits in China. To ensure fresh product was always available, the company calculated safety stock needed based on forecasts rooted in internal historical data – which on average typically missed the mark by 30% in each of its Chinese markets. Analysis by the company’s Six Sigma team revealed that the cost in excess inventory was a direct correlation to forecast error. Specifically, for every 5% error in demand, the company carried an extra 2% of safety stock.
By leveraging Prevedere’s exclusive data and corresponding predictive models, the beverage manufacturer built reliable forecasts for each of its various product lines and Chinese markets. With this more accurate data and models, the company improved forecast accuracy by 18%. Ultimately, this improved accuracy resulted in a 7% reduction in excess inventory and a cost savings of $9 million annually.
In aggregate, companies using our Chinese insights improve forecast accuracy by 28% and create meaningful forecasts as much as 18 months out – ultimately allowing them to make smarter, more profitable business decisions in China. Want to join them? Contact us to learn more.