Why China Deal Flow?
The Consumer Health Market
- China is the world No 2 consumer health care (CHC) market with sales of $24.7bn and will become the No 1 market globally within the next 5-10 yrs.
- The Chinese CHC market is tough to navigate and highly fragmented with >400 CHC businesses.
- There are only 10 Western companies in the Top 100 China CHC players.
- Currently "Western" OTC medicines make up only ~20% of total China CHC market sales. TCM & Herbals accounts for 60% of sales, the remaining 20% being Vitamins and Nutritionals.
In the next 5 years the opportunity to build sales in China is the largest single growth opportunity for most Western CHC companies.
- China is currently experiencing a revolution in Online Ecommerce retailing both Cross Border (CBEC) and Domestically with 40% yoy growth and >300m shoppers with access via smartphones to major online sales platforms like Tmall, JD, and Kaola.
- There is strong demand for Western brands and goods in China and currently Western supply side is not capitalising on this potential.
- There are >1700 Western CHC cos without formal presence in China and with insufficient resource to independently establish a market entry strategy.
Finding the Right Deal
and the Right M&A Target or Partner
- Finding the right M&A targets and or Local company partners to work with and determining commercial potential, best route to market, regulatory feasibility, deal structure/business model and commercialisation strategy, both Online and Offline, represents a significant challenge and needs the combined knowledge of Western and Local CHC business models, network, and deal making expertise.
- EBM and TPP have therefore combined their resources to establish China Deal Flow, a new dedicated CHC advisory business that recognises this market need and combines knowledge of Western and Local CHC business models, network, and deal making expertise.
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