ITOCHU Corporation announced on the 10th that Beijing ITOCHU Huatang Comprehensive Processing Co., Ltd. (BIC), which the company established in China in 1997, has acquired shares in Ningbo Baominrui Trading Co., Ltd. (Baominrui) and Ningbo New Zhapu Economic and Trade Co., Ltd. (New Zhapu) in the Ningbo area of Zhejiang Province, China, making them consolidated subsidiaries.
The two acquired companies are among the largest wholesalers of daily necessities in the Ningbo area. They specialize in cosmetics, toiletries, and hygiene products from major Western manufacturers such as P&G and Unilever, and together the two companies have approximately 3,000 sales outlets in the area.
With this acquisition, BIC will now handle major Japanese manufacturers such as Shiseido and Unicharm, major Western manufacturers such as L'Oréal and Nivea, and the newly added P&G and Unilever brands, expanding the range of appealing products it offers. Furthermore, the Hangzhou and Ningbo areas are particularly vibrant areas of consumption in Zhejiang Province, which has the fourth-largest GDP in China. The company plans to use these two bases as a base to expand its sales network in major cities.
ITOCHU Corporation has been operating a general wholesale business for food, clothing, and housing, primarily targeting Japanese retailers, through BIC. In 2009, it acquired Hangzhou New Huahai Commercial Trading Co., Ltd., a major general wholesaler of daily necessities in the Hangzhou area of Zhejiang Province, as a consolidated subsidiary, securing a total of 13 locations in coastal and inland cities. It continues to grow as China's only general wholesaler with a nationwide presence.
China's cosmetics and daily necessities market has experienced significant growth, currently valued at 135 billion yuan (approximately 2.2 trillion yen). With this investment, ITOCHU Corporation's sales in the general necessities sector for fiscal 2013 are expected to reach a total of approximately 2.1 billion yuan (approximately 34.3 billion yen), the largest in China. In the future, the company will also strengthen its efforts in southern China and inland regions, aiming for sales volume of approximately 3.5 billion yuan (approximately 57.2 billion yen) in 2015.
The two acquired companies are among the largest wholesalers of daily necessities in the Ningbo area. They specialize in cosmetics, toiletries, and hygiene products from major Western manufacturers such as P&G and Unilever, and together the two companies have approximately 3,000 sales outlets in the area.
With this acquisition, BIC will now handle major Japanese manufacturers such as Shiseido and Unicharm, major Western manufacturers such as L'Oréal and Nivea, and the newly added P&G and Unilever brands, expanding the range of appealing products it offers. Furthermore, the Hangzhou and Ningbo areas are particularly vibrant areas of consumption in Zhejiang Province, which has the fourth-largest GDP in China. The company plans to use these two bases as a base to expand its sales network in major cities.
ITOCHU Corporation has been operating a general wholesale business for food, clothing, and housing, primarily targeting Japanese retailers, through BIC. In 2009, it acquired Hangzhou New Huahai Commercial Trading Co., Ltd., a major general wholesaler of daily necessities in the Hangzhou area of Zhejiang Province, as a consolidated subsidiary, securing a total of 13 locations in coastal and inland cities. It continues to grow as China's only general wholesaler with a nationwide presence.
China's cosmetics and daily necessities market has experienced significant growth, currently valued at 135 billion yuan (approximately 2.2 trillion yen). With this investment, ITOCHU Corporation's sales in the general necessities sector for fiscal 2013 are expected to reach a total of approximately 2.1 billion yuan (approximately 34.3 billion yen), the largest in China. In the future, the company will also strengthen its efforts in southern China and inland regions, aiming for sales volume of approximately 3.5 billion yuan (approximately 57.2 billion yen) in 2015.
