Jebsen eyes mainland consumer prospects amid evolving market

Jebsen Group, a Hong-Kong-based brand builder and investor, is accelerating the development of brands that cater to the evolving needs of Chinese consumers, banking recently on well-being and pets, with enhanced support from its new investment arm.

Jebsen CEO Alfons Mensdorff-Pouilly, reflecting on his long involvement in the Chinese market, remains a staunch believer in the country's economy and the enduring trajectory of its consumers.

"In every long-term relationship, there are ups and downs," Mensdorff-Pouilly said. "The long-term trajectory of China and the Chinese consumer — which we believe today — is an upward trend. This is the fastest growing premium consumer story in the world."

With a history of 128 years in marketing and distribution based in China, the company is steering into the future by facilitating market access for over 200 companies. Last year, the company attained a revenue of $2.2 billion.

Venturing beyond its shipping origins, Jebsen has expanded its portfolio to encompass mobility (one of the largest independent Porsche dealer groups in the world), beverages, pet-related business and investments, he added.

For example, the distribution of Blue Girl, in collaboration with Anheuser-Busch InBev, has seen market success, establishing itself as one of the fastest-growing premium imported beers on the Chinese mainland.

The group introduced high-end home appliance brand Dyson into Hong Kong and the Chinese mainland in 2008, selling over 600,000 units annually at its peak.

This year marked the opening of Jebsen's new offices in Beijing and Shanghai, a strategic move aimed at fostering an open and interactive environment to attract young, local talent, said Mensdorff-Pouilly, who led business development of Jebsen Motors in Shanghai in 2014 and was appointed head of the group in 2020.

Jebsen's forward-thinking approach is evident in the establishment of Jebsen Capital six years ago. The investment unit now has assets under management of more than $1 billion. The investment arm not only "drives innovation, but also provides the company with the flexibility to explore new sectors", he added.

"I'm not trying to attract external capital. I want the people to know us, first and foremost, for being an operating company. But the real strength attached to it is our operating businesses that we have in the back," he said.

An example is its foray into the pet industry, where strategic acquisitions underscore its ability to identify and capitalize on growing consumer trends. The company acquired ADP Group, Hong Kong's leading pet food and supplies retailer, and Vetopia, a leading online pet care firm. The CEO said the company is now ready to expand its pet business to the Chinese mainland.

The priority is to build consumer trust, with a focus on product quality and services in the pet sector. As a mass premium brand, the company aims to create a recognizable online and offline platform, offering Chinese consumers a comprehensive experience in pet care, said Mensdorff-Pouilly.

As consumers are increasingly gravitating toward healthier options such as organic, natural and functional foods — according to the 12th China Shopper Report 2023 released by consultancies Bain & Co and Kantar Worldpanel in December — recognizing shifting consumer preferences, Jebsen has entered the wellness beverage domain by partnering with Australia's Bundaberg last year and distributing sugar-free healthy tea beverage Remedy Kombucha in China.

In line with the evolving landscape of the Chinese consumer, Jebsen has extended its business into media and digital marketing.

The company has invested in Starrank, a leading Douyin partner offering integrated solutions to brands including livestreaming and KOL (key opinion leader) sourcing, and Tikin Media, an elevator advertising company with a network covering more than 100,000 elevators in over 50 cities.

The CEO said, "We see these as vertically integrated investments that allow us to offer better services to the brands that we cooperate with, but also allow us to invest into very up-and-coming exciting Chinese, (especially) relatively young and fresh, companies."

Considering the company as a bridge between international brands and Chinese consumers, Mensdorff-Pouilly cautions against expecting rapid success in the Chinese market and emphasizes the importance of patience.

"If someone tells you they want crazy volumes in 12 months, it is a complete recipe for disaster. It will never work," he said. "A good partner understands that good things take time."

Jebsen also remains dedicated to supporting both international and local brands that resonate with Chinese tastes, given the number of emerging domestic brands in recent years entering the consumption fray.

"We're looking for world-class products that fit Chinese tastes and whose owners are willing to partner with us, and we don't differentiate between the origin and fascinating Chinese brands coming up in all the various lines of business we run," he said.

wangzhuoqiong@chinadaily.com.cn