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Cluster Analysis and Overseas Warehouse Assignment of Chinese Smartphones under “The Belt and Road” Initiative

The New Silk Road Leads through the Arab Peninsula: Mastering Global Business and Innovation

ISBN: 978-1-78756-680-4, eISBN: 978-1-78756-679-8

Publication date: 10 July 2019

Abstract

The new Silk Road provides cross-border-e-commerce firms with an opportunity to widen their markets. Under this circumstance, the preference recognition of countries and inventory allocation among overseas warehouses both become critical issues to solve. Three Chinese smartphone brands, including HTC, Huawei, and MI, are selected in this chapter for their relatively enormous sales. DHgate and AliExpress websites are chosen as platforms to analyze the sales for data availability. This chapter first depicts key features of the sales and then, based on which, divide countries into several groups according to their preference for phones by cluster analysis. Then, based on the results of cluster analysis, this chapter further models the inventory assignment among the seven major overseas warehouses that were built by AliExpress in 2015. The results show that the HTC seems to be pursuing the “high value with high price” strategy, while the other two companies seem to be pursuing a hybrid strategy of “low-price” strategy and “high value with low price” strategy. This chapter also provides an assignment pattern of inventory among the overseas warehouses based on the real data of sales and costs.

Keywords

Acknowledgements

Acknowledgments

We extend our thanks to our co-workers for their hard work and bright thoughts. They are Jie Zhang, Jian Wang, Ru Cui, Biwei Liang, Liwei Liu, Peihai Liu, Yuan Gao, Jie Chen, Junhang Liu, and Di Xi. We also appreciate the reviewers for their careful reading and helpful comments on the revision of paper. Most thanks are delivered to Professor Zhang for his valuable guidance and suggestions.

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Citation

Hou, S., Wang, X., Xiao, J., Zhang, Y. and Cheng, F. (2019), "Cluster Analysis and Overseas Warehouse Assignment of Chinese Smartphones under “The Belt and Road” Initiative", The New Silk Road Leads through the Arab Peninsula: Mastering Global Business and Innovation, Emerald Publishing Limited, Bingley, pp. 203-227. https://doi.org/10.1108/978-1-78756-679-820191013

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