Retail News CRM

Tag: GNC

  • KKR to acquire significant stake in V3, TWG Tea

    KKR to acquire significant stake in V3, TWG Tea

    Private equity company KKR is to invest as much as S$500 million (US$366 million) into V3, the parent of cafe chain TWG Tea and massage chair retailer Osim, to fund regional expansion. In a deal which mixes equity and financing, KKR will take an unspecified “significant stake” in V3, which is effectively valued at S$1.7 billion. V3 is the company which resulted from last year’s restructuring of once-listed Osim International after plans for an IPO were shelved.

    Keith Magnus, chairman of Evercore Asia, which advised V3 on the deal said that the investment by KKR represents a more than 50 per cent increase in enterprise value compared to when the group was taken private.

    “This is a phenomenal premium for [Ron] Sim,” said Magnus.

    Sim remains the chairman, chief executive and controlling shareholder of V3. Sim, who remains chairman, CEO and controlling shareholder of the business added in a statement: “I am extremely pleased to welcome KKR as a significant shareholder in V3. I am confident this investment will position the company for our next phase of growth, starting with the immediate expansion of TWG Tea in Japan and the US and of Osim in China.

    “We would also be looking into M&A opportunities that are earnings accretive.”

    V3 also owns the rights to retail GNC nutritional supplements in Singapore, Malaysia, the Philippines and Taiwan.

    Sim says V3’s revenue cleared S$600 million last year and profit was also up.

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  • GNC plans big expansion in India

    GNC plans big expansion in India

    Health and wellness brand GNC India is planning major expansion by increasing its availability to 4000 stores by 2020.

    The retailer will partner with pharmacy chain Guardian Healthcare Services, its master franchise in the market, to distribute GNC products to 1000 retail outlets this year, and boost its business to multiple channels, encompassing retail, e-commerce and distribution.

    GNC India will also market and sell its full product line through the company’s website and via other e-commerce players.

    “We are very excited about our expansion plans in India, where there is significant opportunity for growth,” says Ken Martindale, GNC’s CEO.

    “Guardian is an established player in India’s health and wellness industry and we believe the strength of our two companies will position us as one of the leaders in this attractive and fast growing market.”

    According to the Associated Chambers of Commerce and Industry in India 2017 report, India’s nutraceutical market is currently estimated to be US$4 billion in 2017 and expected to grow to $10 billion in 2022.

    GNC arrived in India in 2004 and is currently available at 50 of Guardian’s stores.

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  • Hana Financial Group To Drive Its Global Loyalty Network With Oracle

    Hana Financial Group To Drive Its Global Loyalty Network With Oracle

    Hana Financial Group (HFG) (Chairman Kim Jung-Tai, www.hanafn.com) announced it signed a memorandum of understanding (MOU) with Oracle in Singapore yesterday under which Oracle will work with HFG in the building and joint marketing of HFG’s Global Loyalty Network (GLN).

    Kim Jung-Tai, chairman of the Hana Financial Group, and Loïc Le Guisquet, president, International, Oracle Corporation, were in attendance at the signing ceremony. Both companies confirmed their mutual cooperation for GLN’s successful launch of services and global expansion, and agreed to collaborate on new technologies such as blockchain, membership, e-money and AI through HFG’s business know-how and Oracle’s technology capabilities. HFG will also modularize the results of the project, including digital asset exchange, and conduct consulting and sales.

    Kim Jung-Tai said, “Through this collaboration, we expect it will be easier for GLN to expand worldwide using Oracle’s leading and innovative cloud technologies that enable digital transformation. Building a global digital asset transfer network is a level of innovation that is rarely seen around the world and when the global integration platform is built, GLN’s customers will be able to enjoy locally offered deals and discounts around the world.”

    GLN is an innovative integrated platform network that enables digital institutions and retailers around the world to connect their digital platforms in one network to freely exchange digital assets and electronic money such as points and mileage. The GLN consortium was established in November 2017 with 36 companies in 11 countries. It is currently under contract with 24 companies and detailed discussions are underway with 15 banks and 20 retailers.

    Meanwhile, on Feb 2, it said that a ‘Coupon Mall Pyeongchang Edition’ in connection with GLN was opened to keep pace with the hosting of the PyeongChang Winter Olympics. This coupon mall is based on the global platform and is being provided in seven languages including English, Korean, Chinese and Japanese. This service will be also expanded globally through GLN’s consortium banks including SuMi TRUST Bank in Japan and Taiwan Taishin Bank, and it is currently offering over 1,000 free coupons. Han JunSeong, vice president of KEB Hana Bank said, “We provide foreign tourists visiting Korea during the PyeongChang Winter Olympics with information on sightseeing, restaurants and various free coupons for major domestic cities such as Pyeongchang, Seoul, Jeju and Busan.”

  • Chinese Investors Consider GNC Acquisition

    Chinese Investors Consider GNC Acquisition

    GNC first popped up in Chinese towns and cities in 2011, with small stores within grocery stores, and now rumors are swirling the giant dietary supplement retailer might end up with a Chinese owner.

    The Wall Street Journal broke the news that GNC is up for sale and a pair of Chinese equity firms are among the interested parties. The journal reported any such acquisition could be worth US$4 billion, including debt—GNC’s market value is around $1.3 billion, with outstanding debt of around $1.4 billion.

    One of the prospective buyers named is Fosun Group, a Shanghai-based investment firm with holdings across insurance, financial, retail and other industries. Its motto is “Combining China’s Growth Momentum with Global Resources.” Fosun most recently bought the English football club Wolverhampton Wanderers and, through Fosun Pharmaceutical, acquired Indian pharmaceutical company Gland Pharma—a number of Chinese pharmaceutical firms are also interested in GNC.

    The other named suitor is Zhongzhi Capital (ZZ Capital), a Beijing- and Hong Kong-based asset management firm focused on media/entertainment, internet, high-end manufacturing, healthcare, financial, IT and logistics. Among its goals is to help overseas companies better penetrate the Chinese market.

    Speculation on the motivation of such firms interested in GNC to a Chinese buyer has centered on the growing trend of Chinese investors purchasing overseas vitamin and sports supplement companies to satisfy Chinese consumer demand for foreign nutrition brands in lieu of quality-challenged Chinese brands.

    Beijing-based Primavera Capital Group paid $238 million to purchase Australian nutrition contract manufacturer Vitaco Holdings in August 2016, and Binzhou, China-based Xiwang Foodstuffs Co. acquired Canadian supplement maker Iovate Health Sciences for $730 million in June 2016.

    GNC has opened around 60 store-within-store locations throughout China involving eight grocery chains. According to its 2015 annual report, released in February 2016, it had five locations  in China, including standalone franchise stores and a small regional retail office.

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  • Sprooki platform to launch in Indonesia

    Sprooki platform to launch in Indonesia

    Shopper-engagement platform Sprooki will launch in Indonesia next month at the 125,000 sqm Supermal Karawaci retail precinct in western Jakarta.

    It will be integrated with the precinct’s touchpoints and mobile apps, allowing retailers to offer customers individualised content such as vouchers, special offers, event alerts and store information.

    Sprooki Michael Gethen and Claire Mula

    Sprooki Michael Gethen and Claire Mula

    Customers will be able to share content on social media including Facebook, which has more than 60 million users in Indonesia. Sprooki is available in both English and Bahasa languages.

    Based in Singapore, Sprooki uses customer location, profile and behaviour data to help retail outlets, shopping malls and department stores engage with their customers via smartphones and other devices.

    Supermal Karawaci is the largest shopping centre in Banten province, west of Jakarta, with more than 1000 stores, three cinemas and the largest Timezone arcade in Southeast Asia – complete with an indoor rollercoaster.

    Sprooki CEO/co-founder Michael Gethen says the deployment will help Supermal Karawaci’s retail tenants improve sales and give the mall unprecedented insight into shopper habits and behaviour.

    Sprooki

    “By implementing the Sprooki platform, our mall will be one of the first shopping precincts in Indonesia to incorporate a data-driven mobile platform to improve shopper experience,” says Supermal Karawaci marketing and leasing GM Pipih Tjandra.

    Sprooki’s mobile platform is already being used by Southeast Asian shopping malls such as a Lend Lease’s 313@Somserset in Singapore and Crescent Mall in Ho Chi Minh City, Vietnam, as well as thousands of retailers and major brands such as Coffee Bean and Tea Leaf, Forever 21, Gap, GNC, Marks & Spencer and Pie Face.

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  • Osim struggles in ‘soft market’

    Osim struggles in ‘soft market’

    Health appliance retailer Osim says its core business is helping it maintain stable gross margins in a retail market it described as “soft” throughout the region.

    Osim’s core is its 546-strong chain of Osim branded stores in 23 countries, which sell therapeutic devices including massage aids. Nearly half of those stores are in Mainland China.

    The company also operates 214 GNC/RichLife stores and 49 TWG Tea cafes with three more planned to open by the year’s end.

    Osim said last week its third quarter sales were S$142 million and profit before tax $10 million. But during the last nine months it has incurred legal fees of $7 million relating to its TWG Tea operation.

    “This has been another challenging quarter where retail sales across the core countries have been soft. This quarter has seen further challenges from gyrating markets and currency turmoil in the region,” the company said in last week’s filing.

    “Despite these challenges, our dominant brand has enabled us to maintain a stable gross margin and cash generative business with cash and cash equivalents growing again in the quarter. We are using our strong balance sheet to invest in new products and continuing our marketing activities.”

    The company expects trading conditions to remain challenging in the short term but says it is cautiously optimistic about its prospects for the remainder of the financial year following the launch of uMagic in key markets and other upcoming planned product launches.

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  • Osim mulls ‘challenging’ quarter

    Osim mulls ‘challenging’ quarter

    Singapore based lifestyle products retailer Osim says trade across all its core markets were soft in the last three months.

    “This has been another challenging quarter,” the company said, declaring sales of SG$159 million and a profit of $29 million.

    “Despite these challenges, our dominant brand has enabled us to maintain a stable gross margin and cash generative business. We are continuing to invest for growth supported by a strong balance sheet.”

    Osim has 560 retail stores in 23 countries, with China maintaining its place as its largest market, where it has 251 stores in 45 cities.

    New products including uMagic, uInfinity Luxe, uDiva, uHip, uSqueez Air, uTrek and uShape Music helped sustain Osim’s dominant position in the category.

    “Our GNC outlets are doing well. We have a total of 220 GNC/RichLife outlets in ONI Global

    and we are growing our sales through new product launches,” the company said.

    Osim also operates 47 TWG Tea outlets, having opened four new ones in the quarter and with plans to open a further 11 in the second half of the year.

    “We remain optimistic on the prospects for the remainder of the year following launch of uMagic in key markets and upcoming planned product launches,” the company said in its stock exchange filing.

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