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FOR EMAGISPACE
RETAIL SEGMENT
INTRODUCTORY NOTE
The following market estimation (for United States only) has been drafted by the consultant based
on factual data (as provided in the document), calculated assumptions referenced from these sources,
as well as the consultants general understanding of the relevant markets (in consultation with the
client)
As the estimations are specific to the consultants opinion, the client is welcome to modify any
assumption indexes, resulting in relevant changes to the estimates
As the information on the operating industry (modular walls/temporary wall solutions) is very minimal,
the market estimation would have a broader range of variation and largely serve as early
indicators on market at hand for EMAGISPACE
Such a market sizing could help in providing pointers to EMAGISPACE but will not indicate
actual sales forecasts
The approach followed is that of a Top-Down nature, wherein the size of the overall market is
estimated from which the Total Addressable Market (TAM), Serviceable Addressable Market
(SAM) and Share-Of-Market (SOM) are calculated
Additional information about the industry in the form of relevant statistics has been provided
2. The CAGR for this period was calculated for each of these sub-sectors
3. Extrapolating this CAGR, the expected number of establishments at the end of Q1 2016 was
estimated
4. By calculating the difference between the values of Q1 2015 and Q1 2016, the number of new
establishments slated to be built in the year 2015 was calculated for each subsector
5. For some sub sectors there is a decline in the number of store establishments (possibly owing to
the rapid increase of e-commerce)
6. The sum total of the expected number of establishments to be built in the year 2015 has been
calculated as the TAM
7. Sectors which are expected to see a decline in store establishments have been removed from
the TAM summation
TAM = 7,669
RETAIL SUB-SECTOR
Motor vehicle and parts dealers
1349
2894
Gasoline stations
309
187
1820
320
Total (TAM)
7,669
Note: A spreadsheet has been provided separately with the detailed calculations and sources
APPROACH
An attempt was made to estimate the general proportion of retail stores that are present in
malls vis--vis those that are exclusive brand outlets the rationale was to provide a greater
probability of using temporary wall solutions to the stores that are in malls (as there is a
greater chance of relocating) and a lesser penetration ratio to exclusive stores, but such
information was not available
There is no clear indicator of preferences/buying behaviour of retailers on Modular/Temporary
walls as a result of which hypothetical assumptions have been made to find out the
addressable market for such products
Research has indicated that currently the modular wall market forms a miniscule portion of the
overall North America office furniture market - Between 1 and 5%
Using this as the only indicator, two scenarios have been assumed A conservative scenario
wherein only 5% of the new retail establishments may consider using temporary wall solutions,
and a neutral scenario with a penetration of 10%
Sub-sectors from the TAM calculation which are not expected to have new establishments set
up, have been removed from the SAM calculation
Source: http://www.innerspaceeng.com/info/Modular-Walls-Market_db-v06.pdf
SAM = 767
RETAIL SUB-SECTOR
TAM
790
1349
2894
Gasoline stations
309
187
1820
320
Total (TAM)
CONSERVATIVE
SCENARIO
NEUTRAL
SCENARIO
SAM
(As per
conservative)
SAM
(As per
neutral)
39
79
67
135
5%
10%
145
289
as addressable
as addressable
15
31
19
91
182
16
32
383
767
On a positive note, the neutral scenario estimates have been carried forward to SOM calculations
Note: A spreadsheet has been provided separately with the detailed calculation
SOM = 58
CONSERVATIV
E SCENARIO
NEUTRAL
SCENARIO
SOM
(As per
conservative)
SOM
(As per
neutral)
RETAIL SUB-SECTOR
SAM
79
135
10
289
22
Gasoline stations
31
19
182
14
32
19
58
Total (TAM)
2.5%
5%
adoption
adoption
On a positive note, the neutral scenario estimates have been considered. The Serviceable Obtainable Market or Shareof-market in the retail space for EMAGISPACE is estimated to be 58 establishments in the first year of operation
Note: A spreadsheet has been provided separately with the detailed calculation
Therefore it has been estimated that the average dimensions of a store floor would
be 112 *112
For the purpose of minimum usage for temporary wall solutions, it has been
considered that each store would purchase EMAGISPACE solutions for at least 1
times their store size
The average height of the wall is considered as 12 feet
Therefor the minimum usage area works out to 112 * 112 * 12 = 151,800 sq. feet
Source: http://envymws.com/
SOM
58 retail stores
151,800 sq.ft
Source: http://envymws.com/