Sales Forecast:

To understand Sanjo’s financial potential in Canada, it is important to estimate how many sneakers the company might sell and what revenue it could generate during the first year. This section combines realistic pricing, market trends, and expected margins.

Projected Sales Volumes In the base-case scenario, we project 5,000 pairs sold in the first year. This is a conservative but realistic number for a new brand entering a competitive market like Canada with limited physical presence.

• Optimistic scenario: 7,000 pairs

• Conservative scenario: 3,500 pairs

Average Retail Price According to RunRepeat (2024), the global average retail price of sneakers is approximately USD 110 (CAD 150). Sanjo sneakers are positioned as mid- to premium-tier, typically priced between EUR 70 and 180. Based on this, Sanjo can realistically sell their shoes for CAD 130 per pair in Canada.

Revenue Retained by Sanjo Because of the strategic alliance, Sanjo will not retain the full retail price. After subtracting logistics, the partner’s profit margin, and operational fees, Sanjo is expected to keep approximately 35% of the retail price, or CAD 45.50 per pair (Deloitte Canada, 2022).

Revenue Forecasts

Scenario

Pairs of shoes sold

Revenue per pair

Toatal revenue (CAD)

Conservative

3500

CAD 45.5

CAD 159.250

Base

5000

CAD 45.5

CAD 227.500

Optimistic

7000

CAD 45.5.

CAD 318.500

This projection confirms that even in the conservative case, Sanjo could generate over CAD 150,000 in its first year, which supports the financial viability of entering the Canadian market through a strategic alliance.