Star Combo to accelerate China growth strategy with $10 million acquisitions
Sydney’s Star Combo has announced it will acquire e-commerce platform Austoyou and Koala Mall for A$10 million in an effort to accelerate to its growth in the China
Austoyou is a fast-growing e-commerce platform that can provide Star Combo with customer demand feedback to influence product lines, giving it a competitive advantage in the high-demand market for Australian vitamins, skincare and health supplements in China.
“These acquisitions are consistent with the Company’s listing strategy of acquiring an e-commerce platform that will advance the evolution of our business from a vitamin and supplements manufacturer and supplier to a fully integrated Australia – China health care company with manufacturing and multiple sales channels along with the expansion of our distribution networks,” CEO of Star Combo Pharma, Su Zhang said.
The acquired businesses delivered approximately $17 million in sales in FY18 and have shown growth of more than 20 per cent per annum in the past two years.
In 2018 the market in China, for vitamins and health supplements, was estimated to be in excess of US$5.2 billion and growing. Chinese consumers view Australian produced products as being of high quality and subject to rigorous regulation and quality control.
Koala Mall provides a retail brand and premium shopping experience to showcase the range of Star Combo Pharma vitamins, skincare, milk products and health supplements at a number of highly visible retail stores in Sydney.