- Published on 13 November 2018
Milan-based Amplifon announced Monday November 12th that it has signed a joint venture with a local partner to enter the dynamic and fast-growing Chinese hearing care retail market.
According to a press release from the company, the joint venture entity, named Beijing Cohesion Hearing Science & Technology Co. Ltd., is located in Beijing and operates 30 stores, mainly located in the Beijing area. The joint venture entity expects sales of around RMB 45 million (approximately EUR 6 million) in 2019. The Chinese market is considered important because of its estimated size, the current low penetration rate, its highly fragmented market structure and, the presence of a large consumer segment.
“This transaction is an important first step to build a local presence in China, a market which represents a sizeable opportunity for us, given the estimated market size and moreover its growth potential in the foreseeable future,” explained Enrico Vita, Chief Executive Officer at Amplifon in the release. “Expanding our footprint in China is definitely key to our medium-long term sustainable growth strategy.”
Amplifon will hold a 51% stake in the joint venture entity, while the local specialty retailer partner will hold the remaining 49% interest. The company reports that the transaction has already received all the necessary regulatory clearances from local authorities.