Project background:

An investment institution plans to make strategic investment in the leading diaper brand in China. The brand has multiple sub-brands, covering different market segments and consumer groups, and its product quality and reputation are better than competitors in the same industry. The brand has a market share of up to 20% in the domestic diaper market and has maintained steady growth in recent years. The investment institution hopes to fully understand the brand's market position, competitive advantages, development potential and risk challenges through commercial due diligence, and provide a basis for investment decisions.

Customer pain points:

The investment institution faces the following main pain points when conducting commercial due diligence:

Lack of in-depth understanding of the diaper industry, unable to accurately assess the brand's core competitiveness and market prospects;

Lack of access to the brand's internal operational and financial data, and inability to fully investigate the brand's profit model and cost structure;

Lack of direct communication channels to the brand's consumers, distributors, suppliers and other key stakeholders, unable to obtain first-hand market feedback and opinions;

Lack of professional business due diligence team and methods, unable to systematically sort out and integrate all aspects of information, the formation of effective research reports and recommendations.

Project purpose:

In July 2023, Champ Consulting was commissioned by the client to complete commercial due diligence services in the following areas:

Through industry reports, expert interviews, market research and other methods, in-depth research on the development trend of the diaper industry, market scale, competition pattern, consumer demand, policies and regulations and other influencing factors, to provide customers with macro-level industry insights;

Through the communication and cooperation with the brand management, finance department, R & D department and other core departments, obtain and review the historical data and documents of the brand, the background of the management personnel, the characteristics of products/services, market share and growth rate, financial status and forecast and other key information, to provide customers with micro-level enterprise evaluation;

Through consumer research, channel interviews, supplier inspections, etc., collect and investigate the brand's performance in the market, consumer satisfaction, channel cooperation, supply chain stability and other important indicators, to provide customers with market-level competition research;

Through the comprehensive use of SWOT research, PEST research, Porter's Five Forces research and other tools, systematically combing and integrating the above-mentioned information, identifying the brand's strengths and weaknesses, opportunity threats, value creation points and hidden risks and other key factors, to provide customers with strategic investment advice.

Research object:

This project involves the following types of research objects:

Industry experts: including diaper industry associations, media, research institutions, consulting companies and other related people, a total of about 20 people;

The brand internal personnel: including management, finance department, research and development department, marketing department, production department and other core departments of the person in charge and staff, a total of about 50 people;

Consumers: including parents of infants and young children who use the brand's diapers, as well as potential target consumers, totaling about 500 people;

Channel: including the brand's online and offline distributors, agents, partners, etc., a total of about 100 people;

Suppliers: including the brand's main raw material suppliers, equipment suppliers, logistics suppliers, etc., a total of about 30 people.

Project Content:

The main contents of this project include the following aspects:

Industry research: Through the collection and research of industry reports, expert interviews, market research and other data, the development history, current situation and trends of the diaper industry are comprehensively combed, including industry scale, growth rate, structure, concentration, profit level, technical level, policies and regulations, etc;

Enterprise evaluation: through communication and cooperation with the internal personnel of the brand, obtain and review the historical data and documents of the brand, and make a detailed evaluation of the basic situation, management team, products/services, market performance, financial status and forecast of the brand, including the investigation of enterprise scale, growth rate, structure, market share, competitive advantage, profit model, cost structure, assets and liabilities, etc;

Competition research: collect and investigate the performance and feedback of the brand in the market through consumer research, channel interviews, supplier inspections, etc., and conduct in-depth research on the competitiveness of the brand, including consumer demand, satisfaction, Research on loyalty, word-of-mouth, etc.; research on channel cooperation, coverage, efficiency, etc.; research on supply chain stability, quality control, cost control, etc;

Investment advice: through the comprehensive use of SWOT research, PEST research, Porter's five forces research and other tools, systematically sort out and integrate the above information, identify the brand's strengths and weaknesses, opportunities and threats, value creation points and hidden risks and other key factors, to provide customers with strategic investment advice, including investment value evaluation, investment risk evaluation, investment return forecast and other aspects of advice.

Project Value:

This project provides the customer with value in the following areas:

Help customers fully understand the development trend and market opportunities of the diaper industry, and provide customers with industry insights at the macro level;

Help customers in-depth evaluation of the brand's market position and competitive advantage, and provide customers with micro-level enterprise evaluation;

Help customers in-depth research on the brand's performance and feedback in the market, and provide customers with market-level competition research;

Help customers systematically sort out and integrate all aspects of information, and provide strategic investment advice to customers;

Help customers improve the efficiency and quality of investment decision-making, save time and cost for customers, reduce investment risk and improve investment return;

Help customers establish a good cooperative relationship with the brand, provide continuous support and service to customers, and enhance their competitiveness and influence;

Help customers contribute to the development of the diaper industry and provide customers with social responsibility and reputation enhancement.