China's private equity market in 2010 was driven by three core factors: 1) continued growth of the Chinese middle class fueling domestic consumption, 2) the increasing impact of the internet changing traditional businesses, and 3) the changing lifestyles of China's urban middle class. Key investment themes included domestic brands expanding nationally through consolidation and M&A, internet and technology enabling new business models and niches, and lifestyle services catering to China's urban middle class. Potential investment targets cut across these themes, focusing on both online and offline retail brands, lifestyle/entertainment services, and healthcare products and services.
Market Research Report : Mobile Commerce Market in India 2012Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
Mobile Commerce is the activity of commencing commercial transactions between both B2C and B2B entities via mobile devices. Indian retail market has experienced high growth over the last decade with a gradual shift towards modern retailing formats. With growing numbers of mobile devices and mammoth wireless subscriber base, the focus is slowly shifting to mobile platforms. Leveraging on enhanced reach like MVAS and diverse features like of e-commerce, m-commerce is poised for greater adoption acrossIndia, in the coming years.
Although mobile commerce market inIndiais in nascent stage, m-payment and m-banking segments have shown significant growth over the last few years. Initiative taken by the government and financial organizations to reachIndia’s un-banked population can ensure tremendous growth in the latter segments. There are around 600,000 territories that require banking facilities but only around 89,000 bank branches are there in the country.
The Intuit 2020 report, authored by Emergent Research in partnership with Intuit Inc., explores the demographic, social, economic and technology trends that will affect consumers and small businesses, and those who serve them over the next decade.
http://about.intuit.com/futureofsmallbusiness/
From around India
Lafarge Boral sees India as a key market
The JV company sells around 5 million sq m of gypsum boards in India. Explaining the rationale behind choosing India as one of the four countries to launch ...
India remains fastest-growing beauty market
Despite the global economic downturn, India remains one of the fastest-growing beauty markets globally, growing at 13% per annum and valued at $6.3 billion. The market offers extensive opportunities for domestic and international players.
Indian players test out 'shared ownership'
There is considerable interest among industry players – both real estate and hospitality – in shared ownership, which has been fairly insulated, thanks to the long-term commitment of consumers
Lamborghini to market lifestyle accessories in India
With an explosion in the sale of computers, laptops, i-phones, BlackBerry and satellite phones, and i-pods in India, the company will sell its signature "computer backpacks, i-phone, BlackBerry, notebook and camera cases at the mega lifestyle retail
A game change for mutual funds
Sebi’s decision to abolish entry loads has given mutual funds a chance to relook their model which hasn’t caught the fancy of retail investors in a big way
What makes eBay India tick?
eBay India has worked towards evolving the e-commerce market. “One is, of course, the model that eBay has.
Demand curve: Indicus-Mint Series
The rapidly growing stable markets of southern India
Good Governance, and high levels of public security have contributed to the success of the southern states
About 30 of India’s top 112 cities are located in the four southern states—Andhra Pradesh, Karnataka, Kerala and Tamil Nadu; but the bulk of them are in India’s most urbanized large state, Tamil Nadu. About half of the state’s population lives in cities and most of these cities have a strong manufacturing base. While Chennai as the state capital is the financial and commercial hub, Thiruvallur also has a large tertiary sector.
More….
Know about Indicus Products here
Segment B3 from the Indicus Consumer Segment
Market Research Report : Mobile Commerce Market in India 2012Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
Mobile Commerce is the activity of commencing commercial transactions between both B2C and B2B entities via mobile devices. Indian retail market has experienced high growth over the last decade with a gradual shift towards modern retailing formats. With growing numbers of mobile devices and mammoth wireless subscriber base, the focus is slowly shifting to mobile platforms. Leveraging on enhanced reach like MVAS and diverse features like of e-commerce, m-commerce is poised for greater adoption acrossIndia, in the coming years.
Although mobile commerce market inIndiais in nascent stage, m-payment and m-banking segments have shown significant growth over the last few years. Initiative taken by the government and financial organizations to reachIndia’s un-banked population can ensure tremendous growth in the latter segments. There are around 600,000 territories that require banking facilities but only around 89,000 bank branches are there in the country.
The Intuit 2020 report, authored by Emergent Research in partnership with Intuit Inc., explores the demographic, social, economic and technology trends that will affect consumers and small businesses, and those who serve them over the next decade.
http://about.intuit.com/futureofsmallbusiness/
From around India
Lafarge Boral sees India as a key market
The JV company sells around 5 million sq m of gypsum boards in India. Explaining the rationale behind choosing India as one of the four countries to launch ...
India remains fastest-growing beauty market
Despite the global economic downturn, India remains one of the fastest-growing beauty markets globally, growing at 13% per annum and valued at $6.3 billion. The market offers extensive opportunities for domestic and international players.
Indian players test out 'shared ownership'
There is considerable interest among industry players – both real estate and hospitality – in shared ownership, which has been fairly insulated, thanks to the long-term commitment of consumers
Lamborghini to market lifestyle accessories in India
With an explosion in the sale of computers, laptops, i-phones, BlackBerry and satellite phones, and i-pods in India, the company will sell its signature "computer backpacks, i-phone, BlackBerry, notebook and camera cases at the mega lifestyle retail
A game change for mutual funds
Sebi’s decision to abolish entry loads has given mutual funds a chance to relook their model which hasn’t caught the fancy of retail investors in a big way
What makes eBay India tick?
eBay India has worked towards evolving the e-commerce market. “One is, of course, the model that eBay has.
Demand curve: Indicus-Mint Series
The rapidly growing stable markets of southern India
Good Governance, and high levels of public security have contributed to the success of the southern states
About 30 of India’s top 112 cities are located in the four southern states—Andhra Pradesh, Karnataka, Kerala and Tamil Nadu; but the bulk of them are in India’s most urbanized large state, Tamil Nadu. About half of the state’s population lives in cities and most of these cities have a strong manufacturing base. While Chennai as the state capital is the financial and commercial hub, Thiruvallur also has a large tertiary sector.
More….
Know about Indicus Products here
Segment B3 from the Indicus Consumer Segment
Mobile money mobile and financial services -James Alleman, Paul Rappoport (2010)ACORN-REDECOM
Developing countries lack effective infrastructure: transportation, telecommunications, financial systems, etc. The positive
economic impact of the improved telecommunications infrastructure has been demonstrated. The ability of microfinance has
been shown to stimulate and enhance economic activity. Now a hybrid of the technologies has begun to emerge: mobilemoney.
The ubiquity of cell phone service, coupled with the notion of microfinance offers the possibility of service in
remote areas of a country where it would be otherwise economically unsustainable to provide banking services. Mobilemoney
has all of the attributes of money including store of value and medium of exchange. This paper addresses the
economics and policy issues of mobile money: What are the economics of mobile money? What policy issues does it raise?
Is it a threat to the traditional banking system? How should it be regulated? What can we learn from the microfinance
literature? Do we have empirical evidence of its impact on growth and development?
Home Electronics Show 2012 (HES-New Delhi) would be India's biggest ever International Exhibition on Consumer Electronics, ICT & Digital Lifestyle. The Mega Show is scheduled from 26-28 October 2012 at Pragati Maidan, New Delhi, India.
www.hesweb.org
'Groundtruth - Using mobile to Research Developing Markets' - txteagle (Mobil...QuestBack AG
Discover how mobile research has enabled two billion mobile phone subscribers in the developing world to provide insights to brands including Diageo, IBM, Microsoft and Google, researchers and even the United Nations. This would be impossible without leveraging mobile phones, which provide eyes and ears in locations that have historically been inaccessible or extremely expensive to research.
2020 Future Value Chain Webcast PresentationCapgemini
If 200 consumer products and retail executives agreed on the trends they are most concerned about and the strategic objectives they would jointly focus on, would you want to know what they were?
The 2020 Future Value Chain report provides the answers to this question. It truly is a report by the industry, for the industry. This special webcast highlights the findings of the new report.
http://www.futurevaluechain.com
China Outbound M&A Opportunities- Identifying Attractive Global Consumer BrandsKC Yoon
As the Chinese economy continues to grow, we see an expanding middle-class of Mass-affluent Chinese consumers who are creating demand for consumer brands and services.
1.With the young and limited domestic consumer brand market, significant opportunities exist for foreign consumer brands (esp. luxury and premium foreign brands), consumer technology & services to fill the demand gaps.
2.Chinese brands can learn much from partnerships and ventures with experienced foreign brands as they attempt to go global.
3.China-based PE Funds are also shifting their focus away from investments in domestic market towards more attractive M&A opportunities in foreign brands (seeking capital due to weak domestic markets)
Impact on Banking: Soujanya P, manager, banking sector, CARE news
28 February 2011
Rs.6,000 crore to be provided during 2011-12 to enable public sector banks to maintain a minimum of Tier I CRAR of 8%.
Rs. 500 crore to be provided to enable Regional Rural Banks to maintain a CRAR of at least 9% as on March 31, 2012
Positive for the banking industry with proposed capital infusion to enable banks strengthen their capital adequacy levels and fund expansion of operations.
Existing housing loan limit enhanced to Rs. 25 lakh for dwelling units under priority sector lending
Enhanced limits for housing loans qualifying for priority sector exposures would act as an incentive for flow of resources.
Central Electronic Registry to prevent frauds involving multiple lending on the same immovable property to become operational by March 31, 2011.
Setting up of Electronic registry to bring transparency and reduce frauds in the mortgage finance segment.
Mutual Funds allowed to raise subscriptions from foreign investors who meet KYC norms for equity schemes.
Highly positive for mutual fund industry; increases access to larger investor base and potential for higher assets under management.
Microfinance (Rs 100 crore) and Self Help Group (Rs. 500 crore) funds set up for supporting the sector under SIDBI.
Marginally positive. Indicate Government's intent that the sector is of critical importance for financial inclusion in the economy.
Attaching a Concept Note on a Payments-related Entrepreneurial Idea I had 4 years ago when I was in India. Although a lot has since changed, some trends forecast in the concept note have actually become reality - especially the emergence of Co-operative Banks as a crucial channel for reaching underbanked & unbanked population in the rural areas. Thus, the material may still be somewhat pertinent today. Opening it up for any entrepreneur or Entity interested in the Payments area, especially in India- with possible applications in other Emerging economies as well. Enjoy and feel free to re-use
An old business plan for establishing value-added-service-operator (VASO) in China.
iBIT was incubated by Morning Forest back in 2002 and had a wholly owned subsidiary in China for this experiment.
The indigenous Telecoms, Internet, Media & Edutainment (TIME) sector
has grown its international footprint over the last six years. The continued adoption of high-speed internet (fixed and mobile) as a direct channel opens up a significant revenue opportunity.
India telecom revenues is primarily driven by voice which constitutes to 90% of total revenues leaving only a smaller portion for data. Aegis LeadCap Research & Consulting predicts that in next 5 years share of revenue from voice will reduce down to 60% from its current state of 90%. 40% revenue from data also includes the revenue from BWA service providers like Reliance Infotel, Tikona etc. Most prominent value add services which drives data revenues include mobile internet, mobile broadband, games, location based services, video calls, mobile adverts, music, video and mobile TV.
Michael Stanat, Global Research Executive at SIS International Market Research discusses some of the economic transformations and trends impacting the market research industry
Mobile money mobile and financial services -James Alleman, Paul Rappoport (2010)ACORN-REDECOM
Developing countries lack effective infrastructure: transportation, telecommunications, financial systems, etc. The positive
economic impact of the improved telecommunications infrastructure has been demonstrated. The ability of microfinance has
been shown to stimulate and enhance economic activity. Now a hybrid of the technologies has begun to emerge: mobilemoney.
The ubiquity of cell phone service, coupled with the notion of microfinance offers the possibility of service in
remote areas of a country where it would be otherwise economically unsustainable to provide banking services. Mobilemoney
has all of the attributes of money including store of value and medium of exchange. This paper addresses the
economics and policy issues of mobile money: What are the economics of mobile money? What policy issues does it raise?
Is it a threat to the traditional banking system? How should it be regulated? What can we learn from the microfinance
literature? Do we have empirical evidence of its impact on growth and development?
Home Electronics Show 2012 (HES-New Delhi) would be India's biggest ever International Exhibition on Consumer Electronics, ICT & Digital Lifestyle. The Mega Show is scheduled from 26-28 October 2012 at Pragati Maidan, New Delhi, India.
www.hesweb.org
'Groundtruth - Using mobile to Research Developing Markets' - txteagle (Mobil...QuestBack AG
Discover how mobile research has enabled two billion mobile phone subscribers in the developing world to provide insights to brands including Diageo, IBM, Microsoft and Google, researchers and even the United Nations. This would be impossible without leveraging mobile phones, which provide eyes and ears in locations that have historically been inaccessible or extremely expensive to research.
2020 Future Value Chain Webcast PresentationCapgemini
If 200 consumer products and retail executives agreed on the trends they are most concerned about and the strategic objectives they would jointly focus on, would you want to know what they were?
The 2020 Future Value Chain report provides the answers to this question. It truly is a report by the industry, for the industry. This special webcast highlights the findings of the new report.
http://www.futurevaluechain.com
China Outbound M&A Opportunities- Identifying Attractive Global Consumer BrandsKC Yoon
As the Chinese economy continues to grow, we see an expanding middle-class of Mass-affluent Chinese consumers who are creating demand for consumer brands and services.
1.With the young and limited domestic consumer brand market, significant opportunities exist for foreign consumer brands (esp. luxury and premium foreign brands), consumer technology & services to fill the demand gaps.
2.Chinese brands can learn much from partnerships and ventures with experienced foreign brands as they attempt to go global.
3.China-based PE Funds are also shifting their focus away from investments in domestic market towards more attractive M&A opportunities in foreign brands (seeking capital due to weak domestic markets)
Impact on Banking: Soujanya P, manager, banking sector, CARE news
28 February 2011
Rs.6,000 crore to be provided during 2011-12 to enable public sector banks to maintain a minimum of Tier I CRAR of 8%.
Rs. 500 crore to be provided to enable Regional Rural Banks to maintain a CRAR of at least 9% as on March 31, 2012
Positive for the banking industry with proposed capital infusion to enable banks strengthen their capital adequacy levels and fund expansion of operations.
Existing housing loan limit enhanced to Rs. 25 lakh for dwelling units under priority sector lending
Enhanced limits for housing loans qualifying for priority sector exposures would act as an incentive for flow of resources.
Central Electronic Registry to prevent frauds involving multiple lending on the same immovable property to become operational by March 31, 2011.
Setting up of Electronic registry to bring transparency and reduce frauds in the mortgage finance segment.
Mutual Funds allowed to raise subscriptions from foreign investors who meet KYC norms for equity schemes.
Highly positive for mutual fund industry; increases access to larger investor base and potential for higher assets under management.
Microfinance (Rs 100 crore) and Self Help Group (Rs. 500 crore) funds set up for supporting the sector under SIDBI.
Marginally positive. Indicate Government's intent that the sector is of critical importance for financial inclusion in the economy.
Attaching a Concept Note on a Payments-related Entrepreneurial Idea I had 4 years ago when I was in India. Although a lot has since changed, some trends forecast in the concept note have actually become reality - especially the emergence of Co-operative Banks as a crucial channel for reaching underbanked & unbanked population in the rural areas. Thus, the material may still be somewhat pertinent today. Opening it up for any entrepreneur or Entity interested in the Payments area, especially in India- with possible applications in other Emerging economies as well. Enjoy and feel free to re-use
An old business plan for establishing value-added-service-operator (VASO) in China.
iBIT was incubated by Morning Forest back in 2002 and had a wholly owned subsidiary in China for this experiment.
The indigenous Telecoms, Internet, Media & Edutainment (TIME) sector
has grown its international footprint over the last six years. The continued adoption of high-speed internet (fixed and mobile) as a direct channel opens up a significant revenue opportunity.
India telecom revenues is primarily driven by voice which constitutes to 90% of total revenues leaving only a smaller portion for data. Aegis LeadCap Research & Consulting predicts that in next 5 years share of revenue from voice will reduce down to 60% from its current state of 90%. 40% revenue from data also includes the revenue from BWA service providers like Reliance Infotel, Tikona etc. Most prominent value add services which drives data revenues include mobile internet, mobile broadband, games, location based services, video calls, mobile adverts, music, video and mobile TV.
Michael Stanat, Global Research Executive at SIS International Market Research discusses some of the economic transformations and trends impacting the market research industry
Indian banking 2020 opportunities and challengesSaurav Dasgupta
The last decade was very beneficial for the Banking sector. In my this article, I have tried to highlight the probable factors that may / will influence the Banking Industry in the current decade (till 2020).
Whitepaper pe investment china lesiure_travel_mkt2020_sep2014KC Yoon
Opportunity for PE Investment in China till 2020..Identifying trends in the growth of the Chinese leisure, cultural, entertainment & travel industries and potential opportunities both domestic and global that can ride on these trends.
White paper soft culture hard economy (summary)_aug09 [f]KC Yoon
Describe potential and opportunity for investing in China's creative & media sector as chinese consumer wealth increases; opening of China's restricted media sector to foreign participation and rise of domestic PE industry
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
An introduction to the cryptocurrency investment platform Binance Savings.Any kyc Account
Learn how to use Binance Savings to expand your bitcoin holdings. Discover how to maximize your earnings on one of the most reliable cryptocurrency exchange platforms, as well as how to earn interest on your cryptocurrency holdings and the various savings choices available.
Top mailing list providers in the USA.pptxJeremyPeirce1
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
buy old yahoo accounts buy yahoo accountsSusan Laney
As a business owner, I understand the importance of having a strong online presence and leveraging various digital platforms to reach and engage with your target audience. One often overlooked yet highly valuable asset in this regard is the humble Yahoo account. While many may perceive Yahoo as a relic of the past, the truth is that these accounts still hold immense potential for businesses of all sizes.
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
Evgen Osmak: Methods of key project parameters estimation: from the shaman-in...
Potential China Private Equity Consumer Investment Themes 2010
1. “China Private Equity 2010 and Beyond ..
Equity–
Consumer-Driven Investment Themes”
Driven
Jan 2010
GLOBAL CHINA CAPITAL
Shenzhen, China
Jan 2010 Version 3.0 by KC Yoon kcyoon07@gmail.com
PROPRIETARY & CONFIDENTIAL
2. Presentation Outline
China weathers crisis well and emerges
with stronger economic foundations
FOUR:
ONE: Strength TWO: Broad- THREE: Govt
Increased
in domestic based drive for focused on
market
consumption Domestic PE fundamentals
competition
Funds flow into domestic economic
sectors Maturing PE
Market
Government taking active role to
promote Private Equity investments
Other
Global Trends
Trends:
Key Consumer Trends and Potential impacting
PIPE/RMB
Investment Themes China
Fund
TWO: Internet – THREE: Changing
ONE: Domestic Brands
Changing the Traditional Lifestyle of Middle-class
Going Nation-wide
Business China
Jan 2010 Version 3.0 by KC Yoon
3. 2009 Recap: Macro-Factors Driving China’s Future Consumer Economy
Factors
Over 110 high-
consumer potential
cities with 34% of
3 GDP
IKEA continue to open 2
stores/year
By 2015, >300M
Demand for Housing
Housing- Sunning plans 500sqm
lower-middle related products and stores in the rural areas
class; 100M Growth of Chinese services targetting for 3000
luxury
consumers
Middle-Class
Preident 7-11 to open3-7
Demand for lifestyle &
stores in Shanghai plans
convenient services for 300 stores in 3yrs
> 200 Cities China Chain Nepstar
with >1M
residents
Urbanization and Demand for better drugstar opem/acquire 700
healthcare stores 2008, plans 3000
Growth of Cities
Sunning plans a B2C site
Growth of B2C
NOW >300M
users; >RMB
120B online
Growth and Impact Most widespread
Korea SKTelecom to invest
RMB500M in qingxuan its
consumer of the Internet media-
media access middle- B2C site
sales
class consumers
Letao to open largest
Jan 2010 Version 3.0 by KC Yoon Retailers online toy store in China
continue to
expand network
4. 2009 Recap: Key Consumer Trends with Investment Potential
Criteria for Strong
3 +
Investment
1 Potential
Affordable Luxury
for the Young Large Market
Growth of Chinese Affluent
Middle-Class “Mass Market” +
“Good Enough”
Products
High Growth
Urbanization and “City-Living”
Growth of Cities Consumer Services
Able to
Online Consumer
Sustain Good
Growth and Impact Brands
Margins
of the Internet
“Knowledge”
Services
Defensible
Govt Stimulus “Health”+ “Well- Niche
being” Services
+“GREEN”
- Increasingly
Jan 2010 Version 3.0 by KC Yoon important
Global trend
5. Recap 2009: Investment Ideas
Emerging “luxury” brands in jewellery,
Niche “Luxury” cosmetics & ladies accessories (
(eg.
Brands Unique hairpin retail combined with
strong service element)
Right Retail chains in 2nd/3rd tier cities
Strategy Chains in Inner
Retail
Cities
where growth potential is high and
= also target for M&A by larger players
Winning
Fund “Quick Fashion”- -Success of ZARA
Affordable “Luxury” + shows ready market for “affordable”
“Mass Market” luxury targetted at the mass market;
“Online ecommerce and other
Online
services will continue to grow as
Consumer/Ecommerce China becomes leading interent
Services nation”
Profitable and high growth segments
Education Services in K12, English Education & Adult
Education (IT& Vocational Training)
Jan 2010 Version 3.0 by KC Yoon
6. 2010 :Same 3 Core Drivers but with New Focal Points
3
potential cities with 34% of
Over 110 high-consumer
Growth of Chinese
GDP
Middle-Class
Broader
Consumer base
Urbanization and
Growth of Cities
2nd/3rd Tier
Cities New Growth
Internet+ Mobile Drives Brand
Areas
Accessibility + Reach
Growth and Impact
of the Internet
Mobile Drives
New Needs
Jan 2010
Version 3.0 by KC Yoon
7. Investment Theme 1 : Domestic Brands Going National -
Consolidation & M&A & Development of Market Leaders
Factors Supporting & Driving
Consolidation Sectors Impacted Market Activities Observed
FOREIGN INTEREST IN DOMESTIC MARKETS:
Convenience Retail, F&B services, FMCG products,
where foreign retailers bring edge in management Tsingtao acquisiition
know-how & technology or acquire domestic brand of Ji’an brewery to
Electronic Retail, Mobile Retail, Supermarket,
into portfolio consolidate
Right
Sportswear & apparel retail, Education
Shandong market
Strategy
FRAGMENTED MARKET SEGMENTS: where there
= are no clear market leaders with significant market
share
Winning
Fund
THIN MARGIN MARKET SEGMENTS: profit
margins are thin and economies of scale are critical
PE investment in mobile retailer FunTalk
to acquire 6 regional distributors to
become No.1 distributor/retailer of Mobile
phones in China before listing on
EXPAND RETAIL REACH: Strong brands targeting NASDAQ
to reach inner cities/grow from regional to national
network quickly
MULTI-BRAND/PRODUCT/SERVICE PORTFOLIO:
Decreasing growth rates from existing Listed Chinese Education service players
brands/products- need new revenue drivers have begun M&A (Chinacast acquisition
of 2 universities; Noah acquisition of
Little Star children education) in order to
develop national footprint & diversify
service lines
Jan 2010 Version 3.0 by KC Yoon
8. Investment Theme 1: Potential Investment Targets
Leading Niche Domestic Regional Retailers/ Services
Strong Brands with
Brands with Strengths in with Strong
nd /3 rd Tier Distribution Nationwide Potential currently
Growing 2
nd /3 rd Tier Markets limited by distribution reach
2 Network
Leading regional brands in Supermarkets in inner cities, Larger well-established brands or
cosmetics, personal care, Food & restaurant & food service chains, global brands that has potential to
drinks, fashion wear, etc etc be national market leader
• Dabao domestic personal care •Fujian-based supermarket retail chain • Burberry – franchised operations in
brand acquired by P&G for dominates 2nd/3rd tier cities and China acquired by parent brand
USD300M operates at higher
higher-then industry recognizing strong market potential
margins
• Regional fashion sportswear brand • Ladies shoe brand retailer with
• KungFu Catering invested by leading strong product but growth cpr to
VCs industry peers limited by lack of
expansion funds
Jan 2010 Version 3.0 by KC Yoon
9. Investment Theme 2 : Internet+ Technology Led Growth of New
Niches from Traditional
Factors Supporting & Driving Growth Sectors Impacted Market Activities Observed
INTERNET & TV DRIVES NEW CONSUMER RETAIL
CHANNEL : allows consumer access to new brands
& products+ brands nationwide reach
Right
Strategy TRANSACTION INFRASTRUCTURE:
Electronic Retail, Mobile, fashion
IMPROVING
internet B2C/;C2C services
(especially clothing) retail,
= efficient online payment systems + low cost
delivery drive transaction increase
Winning
Fund Explosive growth seen in online retail
especially clothing which by 2009 has captured
SHIFT IN VALUE PROPOSITION : may often result RMB2.4 billion or 9.7% of total clothing retail.
in creation of a new business service/model VANCL founded only in 2007 & invested by
leading VCs SAIF, IDG is the market leader with
24% market share
EXPAND BRAND REACH: extensive reach of
internet + mobile into young consumers help to
rapidly build brand awareness
IMPACT OF SOCIAL INTERNET : peer opinions on
brands, products, etc can influence consumer
behaviour
Jan 2010 Version 3.0 by KC Yoon
10. Investment Theme 2: Potential Investment Targets
Innovative new retail channels
leveraging new media New Business Models resulting from internet + mobile + other
(internet/mobile/digital TV)+ value proposition shifts
supporting infrastructure
• Mobile content download retail service as a result of
growth of mobile users and obstacle to access content
• Mobile
Propriety Customer
Mobile Content Interface + Attractive Operators/
Providers Retail Kiosks + Mobile
Sales of China’s TV Professional Service Retailers
Shopping will reach
Innovative Business Models
RM B 20billion in 2008
New retail channels with nationwide
reach at low cost
• Hunan TV & Taobao launching TV
•ALIMAMA is a micro-ad exchange & micro-retail
Home shopping channel to target
site targeted at consumers
lucrative & growing market
Jan 2010 Version 3.0 by KC Yoon
11. Investment Theme 3 : Changing Consumer Lifestyle of China’s
Urban Middle
Middle-class
Factors Supporting & Driving Growth Sectors Impacted Market Activities Observed
Education Services, Media & Entertainment, Travel
FOCUS ON HEALTHY LIFESTYLE: drives demand
Healthcare Devices + Services, Pharma Retail,
for healthcare products/services, sports services
Right
Strategy ON SELF-IMPROVEMENT & PERSONAL
FOCUS
Pearson acquisition of China’s WSI-
leading English learning school
= IMAGE: range of consumer-focused services from
beauty-care, adult education, sports coaching, etc
Winning
Fund
DEMAND FOR STATUS with increased affluent
also demand association with luxury brand/service
Sequoia’s investment into China’s
leading animation company as demand
ENJOY GREATER LEISURE & ENTERTAINMENT: for cartoon/animation content grows
affluence drives consumers towards spending
more leisure time Estimate 8m Chinese
play tennis with
penetration in urban
areas increasing.
SPENDING ON CHILDREN NEEDS: greater
Currently lack of tennis
affordability to spend on “single” child
facilities hampering
growth of sports
Jan 2010 Version 3.0 by KC Yoon
12. Investment Theme 3 : Potential Investment Targets
Lifestyle & entertainment value chain, Healthcare products, medical service &
Niche-domestic luxury product/services pharma retail
Healthy lifestyle + family- Family/Home use healthcare Medical service retail &
Niche Luxury-products focused entertainment Supplements & equipment hospital services
lifestyle services content & services
• Home-grown fashion • Invest in content creation • Family-use home • Leverage on Govt drive to
design houses /animation companies healthcare check-up devices implement rural healthcare
network
• Beauty/spa chain offering • Family-focused Chinese
traditional Chinese cures & history-based themed
treatment retail/entertainment venues;
• Tennis Academy • Regional cuisine themed
Food service
Jan 2010 Version 3.0 by KC Yoon
13. Potential Investments Targets Across Core Themes
Lifestyle/ Entertainment
Lifestyle retail brands
Services Delivering
leveraging offline +online
Innovative Service
presence to extend
leveraging
brand presence &
internet/mobile
nationwide
technology
ONE: Domestic Brands
Going Nation-wide
TWO: Internet –
Changing the Traditional
Business
THREE: Changing
Lifestyle of Middle-class
China
Jan 2010 Version 3.0 by KC Yoon
14. PE Investments in China’s Retail & Consumer Sector in 2009
Investor
Fund
Sector Company
Company
Value
Fund/ Remarks
Remarks
Invested Company
Consumer Food Yashili Group , Carlyle Group • 17.3% for between USD100-200M
Products- Infant Milk Guangdong • Intention to build industry leader in growth market
Powder with strong 2nd/3rd tier city distribution
Consumer Food Modern Dairy, Anhui KKR • Minority investment
Product- Dairy • Intention to grow market leader with large scale
modern farming technology
Consumer Fashion Daphne International TPG • USD80M for minority stake
Brands (HKSE) • Market leader in value lady shoe segment
- Ladies Shoes
Consumer Food Golden Han Unknown • 30% for USD42M
Service- Restuarants
Restaurant Chain
Consumer Fashion – Guangzhou Meishan Legend Capital • USD10M for minority stake
Hair Accessory Retail • Fast growth & high margin fashion accessory retail
Electronic & Appliance GOME Bain Capital •18% stake for USD430M
Retail (HKSE) • Value-add to improve management efficiency in
China’s largest player
Consumer Retail- Wumart Inc TPG, Legend & • USD212 for 11%
Supermarket Retail (HKSE) Hony Capital
Version 3.0 by KC Yoon
15. M&A Transactions in China’s Retail & Consumer Sector in 2009
Investor
Fund
Sector Company
Company
Value
Fund/ Remarks
Remarks
Invested Company
Acquisition by domestic companies
Consumer Food Beijing COFCO • 100% for USD16M
Product- Wugaodaochang • New product line which will benefit from COFCO’s
Instant Noodles Food large distribution
Consumer Retail- Dalian Dongzhijie Pou Sheng • 70% for USD122M
Sportswear Retail Sports International • Acquisition to access over 440 new distribution
(HKSE) POSs
Consumer F&B- Ji’An Beer Group Tsingtao Brewery • 100% acquisition for USD37M
Beer & Brewery • Consolidation of Shandong beer market
Retail Supermarket Times, HK-based Wumart,
Wumart Beijing’s • Majority stake for ~USD560M
Supermarket chain largest Supermart • Acquisition of management knowhow & operations
technology
Education- Little New Star Noah Education •100% acqusiition for USD113M
Education • Gain revenues & new market reach
Cross-border acquisitions
Consumer Food Little Lamb Hotpot YUM Inc • 13.9% stake
Service- (HKSE) • Expansion of domestic-brand food service portfolio
Food Service Chain in China
Education- Wall Street English Pearson PLC •100% acquisition for USD145M
English • Pearson building domestic business presence
Consumer Fashion Shanshan Group Itochu (China) • 28% for USD111M
Brand- Apparel • Build domestic business
Version 3.0 by KC Yoon
16. Other Notable Features of China PE Transactions in 2010
Include investments into under
under-valued
listed consumer/retail entities (
(eg. SGX)
Deal Sources with objective to add expansion capital &
drive
As market leaders build market share &
consolidate market, opportunities to exit
Exits through investments in smaller brands/companies
Trade Sale by identifying potential strategic portfolio
owner in trade sale
Jan 2009
2010 Version 2.0 by KC Yoon
3.0