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Consumer & Retail

 


How we see acquisitions in the space

Despite consumption only accounting for a small share of GDP, retail sales have been growing healthily for over a decade, bringing the world's consumer goods brands and retailers to China. Many have entered or developed through acquisitions of Chinese players. Not only has this given them established brands and businesses, but also opened up local categories not suited to their existing portfolios, and extended sales and distribution reach to new geographies and channels. More recently, Chinese players have begun to make acquisitions overseas, in most cases securing supply chains, but some are also buying international brands to bring back to China.

Our qualifications in the space

InterChina has a specialist C&R group dedicated to transactions in the C&R space. The group has been active for over 10 years, and with its transaction record and relationship network, has established strong credibility with both international and Chinese players. We commonly work on inbound buy-side mandates for international clients, but increasingly on restructuring and sell-side, as well as outbound buy-side mandates for Chinese clients. Our breadth of experience spans food & beverage, leisure goods, video games, fashion retail, luxury goods, grocery retail, food service, big box retail, TV shopping and outlet malls among many others. In a typical year, the C&R group accounts for a third of InterChina's engagements.

Why our capabilities are relevant in the space

Our proactive and systematic approach to deal origination is critical in a space where many Chinese targets are emerging from smaller cities at accelerated growth rates and would otherwise remain off the radar. Our specialization in the C&R space allows us to engage with clients on a strategic level, bringing a contextual understanding to complex and shifting transaction issues, and advising on acquisition strategy and options. And given that most Chinese players in the C&R space are privately owned businesses, our dealmakers prove invaluable in managing processes where both international corporates and local entrepreneurs are involved, being able to speak the language of both.

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A summary of typical clients provided below.

Typical Clients: Consumer Goods

Consumer Health

  • Nutritional supplements
  • OTC drugs
  • Weight control

FMCG

  • Alcoholic beverages
  • Dairy goods
  • Frozen food
  • Seasonings & sauces
  • Snacks & confectionary

Hard Goods

  • Domestic goods
  • White goods

Luxury

  • Cigars
  • Designer fashion
  • Footwear
  • Fragrances

Pet Care

  • Accessories
  • Pet food
  • Pet health

Soft Goods

  • Accessories
  • Lingerie & apparel
  • Sporting goods


Typical Clients: Retail & Services

Alternative Channels

  • E-tailers
  • Mail order
  • TV shopping channels

Consumer Services

  • Auto/travel assistance
  • Auto repair

Food Service

  • Bakery chains
  • Café chains
  • Full service restaurants
  • Ice-cream parlors
  • Quick service restaurants

Multi-Brand Retail

  • Department stores
  • Outlet centers

Retail

  • Convenience store chains
  • Hyper/super markets
  • Mom & pop stores
  • Retail capital goods

Specialty & Branded Retail

  • Bicycle stores
  • Car dealers
  • Fashion retail
  • Luxury boutiques
  • Pet stores
  • Retail pharmacies


Typical Clients: Food & Beverages

Agribusiness

  • Animal protein
  • Dairy farming
  • Fish & seafood
  • Fresh fruit & vegetables

Branded Beverages

  • Coffee (instant, beans)
  • Fruit juice
  • Milk
  • Spirits
  • Tea (leaf, bag, powder, slimming)
  • Wine

Branded Foods

  • Breads & baked goods
  • Confectionary & chocolate
  • Dairy (cheese, yoghurt, ice-cream)
  • Edible oils
  • Frozen ready-to-eat meals
  • Frozen vegetables
  • Oatmeal
  • Sauces (Chinese & Western)
  • Snacks (nuts, biscuits)
  • Spreads

Food Service

  • Bakery chains
  • Café chains
  • Full service restaurants
  • Hotel groups
  • Quick service restaurants

Ingredients

  • Coco powder
  • Dairy ingredients
  • Functional additives
  • Nutritionals (supplements, premixes)
  • Oils & fats
  • Seasonings (dry, pastes, and liquids)
  • Sweeteners

Retail Channels

  • Convenience store chains
  • Hyper/supermarket chains
  • Mom & pops,
    independent mini-markets
  • Retail pharmacy chains
  • TV shopping channel

Route-To-Market

  • Contract sales organizations
  • Distributors
  • Wholesalers & wholesale markets