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.

The Opportunity

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

• Finding the right M&A targets and or Local company Partners to work with and determining regulatory feasibility, commercial potential, best route to market, 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.
• China Deal Flow is a new dedicated CHC advisory service that recognises this market need and combines expert knowledge of Western and Local CHC business models to find you the best deals.
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• China Deal Flow is backed by TPP Healthcare, one of China’s foremost healthcare advisory businesses, with a strong track record in Rx and CHC healthcare deal making and an expert team of both Western and Chinese executives with very strong industry experience and network.