Conclusion
The opportunity for Polo Ralph Lauren to grow its business through China e-Commerce
is undoubtedly great.
However, this is a new market for PRL, and launching successful
e-Commerce business is far from simply creating a localized website. Successful e-Commerce
for PRL will require scalable distribution, flexible inventory, close to market warehouse,
accurate fulfillment, speedy delivery, secure payment options, integrated information technology
and best in class customer service.
For these reason we have recommended that PRL keep the DC operation, inventory
management, customer service and the premium last mile delivery in house. However, for its
fulfillment operation, we believe it is best for PRL to outsource this to companies with local
experience. As PRL grows and learns from its partners, it can look to take over these operations.
This approach will allow PRL to increase the accessibility to its products, provide best in class
service and minimize the time to market for its products.
In addition, we believe PRL should focus on understanding and segmenting the different
consumers in the market, while offering customized services to each group.
Table 5 highlights our recommendations based on customer segmentation and service
level