Yeehoo is the largest single domestic babywear brand by sales in China. The Company was formed in 1995 in Guangzhou, and has spread to close to 1000 retail locations covering 190 cities in China and every province other than Taiwan, Hong Kong and Macau. Yeehoo's products are well regarded for product quality, and have a strong following amongst upper-middle class parents. Lunar Capital has seconded in management to Yeehoo and worked with the Company to increase its leading position in China's grow detailing market for infant products.

News & Commentary

News

November E-Commerce Sales Show Strong Consumer

As we enter the year-end holiday season, the world’s two largest economies will generate tremendous levels of shopping both online and offline, bringing the sheer scale of China’s consumer growth into sharper focus.Double 11 – The online Chinese consumer is as healthy as ever Sales during November’s “Double 11” promotion reached 120.7bn yuan, or US$18bn, up 32% YoY. Chinese shoppers were enticed to build their shopping carts early, and in return were promised discounts and lightning...

Read more 2016-11-30 | Lunar Capital
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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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Double 11 a record day for Lunar companies

November 11, or “Double 11”, is now the world’s largest e-commerce shopping day, when merchants offer steep discounts to entice online shoppers. Since its inception in 2009, the day has achieved explosive growth year after year, and market leaders like Alibaba’s Tmall's have drawn the attention of other players, including JD.com, Dangdang, Gome and Suning, and international competitors like Amazon to partake in the frenzy. "Double 11" has grown to epitomize the success and growth of China’s e-commerce...

Read more 2015-11-29 | Lunar Capital
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Private Equity and the Evolving Chinese Consumer: An Interview with Derek Sulger of Lunar Capital

In a recent interview with EMPEA, Derek Sulger discussed the private equity landscape in the context of China’s recent volatility, and the prospects and challenges for Chinese consumer-related businesses.   How would you assess the current state of the private equity landscape in China, specifically in the context of recent volatility on the Mainland stock exchanges?   China’s economy is in better shape than the Western press would lead you to believe. The consumer goods...

Read more 2015-10-20 | EMPEA
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Our Perspective on the Current Economic Situation and China’s Consumer

China may be undergoing a bumpy but managed landing but our operations suggest that the consumer remains on track.   The Chinese economy is not melting down. That notwithstanding, this shift has resulted in Asian market capital outflows that have driven valuations of certain key markets to levels not seen since the global financial crisis.    Deteriorating market sentiment is resulting from the realization that we are in the midst of a bumpy but managed landing. This is long-term better...

Read more 2015-08-30 | Lunar Capital
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Chinese Consumer Story Remains Strong

Analysts and party leaders are calling for a need to rebalance China’s development toward a consumption-driven economy, and move away from investment-led growth, which has slowed. Despite the gradual increase in number of China skeptics, we are confident that China remains the fastest growing consumer market in the world. A recent McKinsey report argues that consumption in China has grown faster than almost any other country on an absolute basis, growing from approximately $0.9 billion in 20...

Read more 2015-05-28 | 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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The Mobility of Consumption

Mobile “on the go” shopping in China is becoming the norm - from researching products and discussing with friends to purchasing with a swipe of the finger. Mobile shopping is changing the way customers discover, research and ultimately buy products in China, primarily through 1) providing tools to conduct research while in-store, 2) creating robust platforms for marketing and real time customer engagement, and 3) allowing brands to inexpensively expand their customer reach. Our businesses are proactively...

Read more 2015-03-30 | 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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A Growing M&A Culture

M&A activity in China reached record highs in 2014, with the consumer, technology and financial sectors leading the way. According to PWC, total M&A in China surged by 55% in both volume and value, with foreign strategics increasing their activity by 58% and domestics 63%. Last year’s M&A growth provided tailwinds for private equity in China and much needed liquidity for its investors. Exits by trade sale and M&A hit a record high in 2014, accounting for 37% of the total. Trade...

Read more 2015-02-26 | Lunar Capital
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Succession-planning Deals: A Matter of Legacy

By Andrew Woodman Long a feature of the developed markets private equity, succession-planning opportunities are beginning to pop up in emerging Asia. Regardless of geography, convincing a founder to sell his business is a challenge Over the course of three decades, Chinese meat snacks producer Guizhou Yonghong - best known for the popular Niutou jerky brand - has grown from a small rural operation to be one of the leading players in its market. The three founders, who set up the company...

Read more 2014-11-04 | AVCJ
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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
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Derek Sulger: the Expansion of Middle Class in China

During an interview by PEDaily, a leading web portal in the venture capital and private equity industry in China, Derek Sulger shared his insight on the investment opportunities brought by txpansion of middle class in China.   For more, please click here.

Read more 2013-12-01 | PEdaily
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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
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China Yeehoo Sells Control to Lunar Capital, Its Affiliates

China Yeehoo Group Ltd., a Guangzhou-based Chinese baby products retailer, has sold a controlling stake to Lunar Capital Management Ltd. and its affilates. Yeehoo’s existing management team will remain a substantial minority shareholder of the company, while Lunar Capital will appoint a majority of the board of directors and second members of its operation team to the company, Yehoo said in a release today. Financial details of the transaction weren’t disclosed. Demand in China for baby and...

Read more 2012-01-10 | Bloomberg