L Catterton’s Strategic Investment in Stenders Amid China’s Consumer Shift: Seizing Opportunities in Lower Valuations and Competition

American investment company, L Catterton, has made an investment in Stenders, aligning with the changing consumer trends in China. The firm believes that it's a favorable time to engage with China's consumer market due to reduced competition and lower valuations.

The purchase via L Catterton's Asia fund platform signifies the fourth time the consumer-oriented company has invested in China within the last year, with a total investment reaching $200 million. The company stated its ability to pinpoint businesses with appealing risk and reward ratios, even amidst the difficulties in the globe's second biggest economy.

"Negative statistics concerning China's consumer market tend to generalize the situation and fail to provide a comprehensive view," stated Scott Chen, the Asia managing director at L Catterton. "We are of the view that now is an opportune time for us to become more involved as the sector is experiencing or approaching several low points; these encompass consumer trust, business worth, and deal competition.

"Difficult periods such as these can also expose which businesses genuinely have unique products, powerful brands, and devoted clientele."

Supported by the high-end goods group LVMH, L Catterton manages assets worth $34 billion. Their Asian portfolio includes the shoe brand Birkenstock and the restaurant franchise Crystal Jade, as per information on their website.