Soho Baby is a leading distributor of imported hard baby goods (bottles, furnishings, etc) to capture affluent but mass market Chinese consumers. The Company has been rapidly expanding its sales in first and second tier cities, and possesses national and regional exclusive distribution rights for high-end international brands such as Philips Avent and Tommee Tippee. Lunar Capital has been actively working with the Company to help secure additional exclusive rights of first tier international brands, and to develop a strong distribution network through our Lunar network.

News & Commentary

News

Catching the Next Wave of Consumption Driven by Policy

It has taken China more than three decades of rapid urbanization and persistent high growth rates to get to where we are today, and the Chinese economy is now entering a “new normal” that requires sustained efforts to re-balance its fundamental economic structure to focus on stable, single-digit, growth driven by the consumer. Beijing’s recently announced "13th Five-Year Plan” aims to achieve a balanced and stable society, and reiterates the 2010 target to double GDP and GDP per capita income of...

Read more 2015-12-30 | Lunar Capital
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Retail Rounding a Corner

Newspapers last year were littered with stories highlighting concerns about expanding retail inventories driven by short-sighted management chasing top-line growth. Blind expansion from 2006 to 2011 resulted in unstable inventory levels as total industry points of sale more than tripled, and EBIT margins dropped by close to half. Today, there are signs that the industry has turned a corner. Starting in 2012 brands began to curtail store expansion plans and started to close down poorly-performing...

Read more 2015-04-29 | Lunar Capital
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Little Star Launch Event Successfully Held in Shanghai

Little Star Launch Event and sHero International Women’s Forum were successfully held on Bund 3, Shanghai. For more on the event, please click here.

Read more 2015-03-06 | Little Star Brands Group
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Lunar Capital Update: Achievements in 2014

Our achievements in 2014 continue to serve as a validation of our thesis, strategy and commitment to consumer-focused, operationally-intensive, control-oriented investments in China. Our most recent fund, Lunar Capital Partners-III, is now fully invested with strong prospects for further valuation gains and distributions. Our apparel investment, Yeehoo, ended 2014 with revenue and earnings up significantly, positive margin improvement and e-commerce growth driven by channel expansion, product...

Read more 2015-01-29 | Lunar Capital
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Delivering Value Creation

Much of the discussion of our operational involvement in our portfolio revolves around growing top line revenues, controlling costs and streamlining decision making. These are goals that we must drive through deeper, more granular involvement in our companies.  This month we highlight some of the areas for improvement within our businesses that have been particularly low hanging fruits.Product R&D We see improvements through research and development and distribution channel...

Read more 2014-06-29 | Lunar Capital
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Maximizing Value through Building Platforms

Platform-building is woven into Lunar’s DNA. The business that began as Linktone in 1999 subsequently gave birth to two further companies, Intrinsic and SmartPay. Together they formed the bulwark of Fund I and each of the three has now been fully exited, generating attractive returns. Another platform-building opportunity arose when we acquired Yeehoo in 2011. The move was true to our core consumer belief that China is undergoing a steady migration toward higher quality branded products across...

Read more 2014-05-29 | Lunar Capital
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A Solution to Stress and Succession

Stressed out sextuginarian and septuginarian entrepreneurs are saddled with succession issues, as are their quadregenriarian and quinquagenerian brethren. A 2013 survey of privately-held small- and medium-sized private enterprises conducted by Shanghai Jiaotong University found that 70% will face succession issues within the next five to ten years, and less than 20% of next-generation heirs and heiresses are willing to take on the responsibility for running their companies. Stress is compounded...

Read more 2014-03-19 | Lunar Capital
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PE Firms to Go ‘Ga-Ga’ For Kid-Focused Deals in China

By Sonja Cheung Private equity firms in China invested in baby or child-related companies received their Christmas present early this year, after the government announced it would ease its notorious one-child policy. The change in policy is a bid to boost the country’s ailing birth rate, and help balance out China’s aging population. Share prices of Chinese businesses, from education to children’s clothing, popped after the announcement was made earlier this month, and now at least one industry...

Read more 2013-12-04 | WSJ
News

Burgeoning Bourgeois

The Chinese government has delivered on its promise of creating wealth for the masses, giving consumers purchasing power unimaginable even a decade ago. A recent study by McKinsey stated that the number of upper-middle class households with income between RMB 106,000 and RMB 229,000, has grown from 6% of urban household in 2010 to 14% in 2013. While the number of middle class households still outnumbers the upper-middle class, accounting for 54% of the total, McKinsey estimates that roughly 40...

Read more 2013-10-16 | Lunar Capital