Feasibility Study for the Restructuring and Optimisation of dCS’ China Distribution Channel

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dCS manufactures high-performance audio components that are enjoyed by music lovers and music professionals worldwide. The company's global distribution model has remained largely unchanged for more than two decades, so dCS would now like to explore opportunities to optimise its routes-to-market with the end goal of getting their products into the hands of more consumers. The focus of this project is a feasibility study for doing just that in one of dCS' key markets (and the fastest growing audio markets): China.This feasibility study aims to comprehensively identify and evaluate a broad range of opportunities to improve dCS' route-to-market in China, focusing on downstream supply-chain visibility and gross margin optimisation. These areas have been chosen as the focus because savings in the distribution channel is the aspect of the company's business with the largest potential to impact the bottom-line. Furthermore, based on market sizes and dealer penetration, dCS is confident that it has not achieved the same level of market-penetration in China as it has in its other key markets. Coupled with the knowledge that the Asia Pacific region is the fastest-growing audio equipment market, the case for the opportunity for dCS to work on this area of its business becomes clear.As a company, dCS' business model relies on persistent innovation and maintaining its position at the forefront of digital audio. Our products are class-leading in performance, reliability, and quality, and our R&D team has been working since 1987 to ensure this has remained the case.The key objectives of this project are to investigate, end-to-end, the route-to-market for dCS into mainland China and propose alternative structures, partners, and activities for distribution in the region. Pursuit of these objectives in the China region is only now feasible for dCS, as the company recently received CCC certification for its products and its Cambridge, UK factory---critical for direct participation in the China market. Understandably, the objective following this is now to maximise the value of these certifications. This work is expected to have both medium- and longer-term impacts on dCS' business. A direct impact on dCS' bottom line is expected in the medium-term through improving the company's margins in a region currently responsible for more than one fifth of its turnover. In the longer-term, the channel's improved visibility and control will aid both scalability and market penetration.