Latest news with #Bain&Company
LeMonde
11 hours ago
- Business
- LeMonde
Customs duties: Luxury manufacturers worry about their profit margins
Luxury goods manufacturers are flying blind. Although the sector now knows its exports will be taxed at 15% upon entry into the United States as of August 1, the entire supply chain is questioning the consequences of these additional costs and the best strategy to avoid undermining their profitability. As Pierre-François Le Louët, co-president of the French Union of Fashion and Clothing Industries (UFIMH), pointed out, "The United States is a very large market that luxury goods manufacturers and high-end ready-to-wear brands cannot do without." The country alone accounts for around €80 billion of the €363 billion in global luxury goods revenue. France exported nearly 8% of its women's ready-to-wear, 13% of its handbag production, and an equal share of cosmetics to the US in 2024. The US remains the top priority for French manufacturers, who are facing a global slowdown in the market. Sales of ready-to-wear, cosmetics, and perfumes could fall by 2% to 5% in 2025, according to forecasts from consulting firm Bain & Company published in June. The sector is counting on US sales specifically to offset slowing consumption in China. In 2024, activity there dropped by roughly 20%, according to Bain & Company, and the start of 2025 has shown few encouraging signs. Tourists have deserted Hainan Island, a territory known for its shopping centers specializing in duty-free goods.
Business Times
13 hours ago
- Business
- Business Times
Apac biotech sector could draw capital as investors seek diversification amid US-China tensions
[SINGAPORE] Asia-Pacific could be the new frontier for biotechnology investment, a report by consulting firm Bain & Company indicated on Thursday (Jul 31). Markets in the region are gaining ground as credible innovation hubs as global biotech strategies shift amid geopolitical tensions and deep US research funding cuts, according to the report. The report was developed jointly with the Economic Development Board, the Agency for Science, Technology and Research, JPMorgan and SG Growth Capital. 'The potential for US-based scientific talent to migrate to more favorable regions could also create an opportunity for Asia-Pacific governments and institutions to strengthen their innovation bases,' the report indicated. Favorable intellectual property regimes, regulatory agility and tax incentives – particularly in Singapore – position Apac as an attractive destination for global biotech investment, it added. Moreover, the region is winning recognition for next-generation modalities, from mRNA and cell and gene therapies to artificial intelligence-enabled drug discovery. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Fabio La Mola, partner at Bain & Company, said: 'We are looking at an exciting era for Apac's biotech sector, with the opportunity for true innovation to emerge from a geography that historically has been primarily a commercialization hub.' China leads, but geopolitical conflict pull capital away China dominates Apac's biotech investment scene, but geopolitical developments could divert capital elsewhere, said Bain & Company. The country accounted for more than 75 per cent of regional biotech venture capital and private equity flows since 2019, and industry giants like Pfizer and AstraZeneca are committing billions to research and development facilities in China, according to the report. With stunning strides over recent years, China's biotech sector is poised to challenge Western dominance on innovation. Notably, the number of Chinese novel drugs entering into development surpassed that of the European Union in 2024. However, the report noted that geopolitical tensions are reshaping biotech strategies, with biotech funding activity in China having slowed over the past few months. Amid fraught US-China relations, US pharmaceutical firms are rethinking their reliance on China and are seeking diversification to hedge against risk, Bain & Company said. 'While China continues to offer significant advantages in cost efficiency and scale, persistent geopolitical tensions and mounting policy uncertainty are diversifying capital flows into emerging hubs like Singapore and South Korea,' the company said. 'China has long been Asia-Pacific's biotech leader in terms of scale, but Singapore is emerging due to its commitment to innovation, political neutrality, intellectual property protection, and regulatory alignment,' it added. Slowing US-led innovation in early-stage R&D funding presents opportunity for Apac As tightening research budgets threaten to slow US-led innovation, particularly in early-stage academic research, Apac markets could step in to fill the gap, the report said. This comes as proposed funding cuts at the US National Institutes of Health are expected to reduce grant availability. 'As a result, Apac markets are increasingly positioned to lead in early-stage research, with big pharma likely to turn more actively to the region for sourcing innovation,' Bain & Company said. The report indicated that public funding plays an increasingly important role in supporting early-stage research, given that capital tends to flow toward later-stage, clinically-validated biotech deals, as higher investor risk aversion has led to a preference for more mature projects with clearer commercialisation pathways. This is seen in how early stage funding in Apac declined at an 11 per cent compound annual growth rate from 2019 to 2024, while late-stage biotech deal volumes grew 1.5 times. In response to the early-stage R&D funding gap, Apac governments are stepping up to seizing on the opportunity. They are launching targeted programmes providing capital and infrastructure that supports early-stage R&D projects to attract private capital investment flows to their markets. For instance, the Korea Drug Development Fund has committed US$1.6 billion to over 1,200 projects by 2030, while Japan's Bioventure Support Program is deploying US$366 million to nurture biotech startups. In Singapore, the government has allocated S$28 billion to support science and technology development, including biomedical R&D under the ongoing Research, Innovation, and Enterprise plan.
The South African
a day ago
- Business
- The South African
State capture-implicated Bain & Company shuts down SA operations
State capture-implicated international company Bain & Company has shut down its consultancy in South Africa just three years after being banned from doing business with the government. Bain & Co, which scored a R187 million contract to restructure the South African Revenue Service (SARS) following the appointment of Tom Moyane as commissioner in 2014, was part of the companies implicated in the Zondo Commission in 2022. According to the Financial Times, Bain confirmed it was winding down its consulting operations in South Africa, saying its Johannesburg office would become a services hub supporting its global operations, while retaining the vast majority of its local employees. The company has reportedly struggled to re-establish itself as a management consultancy group of integrity. In September 2022, the company was also banned by the National Treasury from doing business with the government for 10 years. Bain & Company's partner in South Africa, Athol Williams, blew the whistle on the corruption. During his testimony at the Zondo Commission, he suggested that the company, with the help of Moyane, had been embroiled in questionable activity at SARS and even accused Bain & Co of attempting to silence him. In 2021, Williams had to flee South Africa over fears for his safety after he blew the whistle on companies and individuals involved in state capture and testified before the Zondo Commission. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X, and Bluesky for the latest news.
Web Release
3 days ago
- Business
- Web Release
New Bain & Company Analysis Details How Buyers Can Unlock Full Value from Carved-Out Businesses
New Bain & Company Analysis Details How Buyers Can Unlock Full Value from Carved-Out Businesses Bain & Company's latest insights, You've Decided to Buy a Carved-Out Business. Now What?, examine how acquirers can harness the full potential of divested businesses, while avoiding the common pitfalls that jeopardize success. Buying a divested business can be a strategic way to reshape your portfolio and jump-start growth. Whether the objective is to expand into new markets, fill gaps in a product portfolio, or gain quick access to revenue, customers, operational capacity, and talent, carve-outs can create significant value for acquirers. But too many buyers focus only on getting to Day 1 and overlook the need for a solid integration thesis linked to the deal thesis and key value drivers. Bain's M&A Practitioners 2025 Outlook Survey reveals that cultural differences and process and technology issues are the biggest challenges in integrating carve-outs—followed by negotiating transition service agreements (TSAs), talent issues, and defining the carve-out perimeter. These issues must be proactively addressed from the outset. The most successful carve-out acquisitions start with due diligence that identifies both the carve-out-specific elements and the value creation plan required to underwrite the deal. They develop a solid integration thesis linked to essential value drivers and carve-out components. Here's Bain's advice for buyers to address these issues: Use cutting-edge diligence to assess the carve-out situation (e.g., perimeter, entanglements, standalone costs) and its impact on value creation. It's essential to dig deep into people, systems, and assets—including contracts and IP—and identify areas where TSAs or a build-out/integration plan are needed for Day 1. Diligence should also highlight commercial implications, such as distributor gaps or risk from comingled contracts. It's essential to dig deep into people, systems, and assets—including contracts and IP—and identify areas where TSAs or a build-out/integration plan are needed for Day 1. Diligence should also highlight commercial implications, such as distributor gaps or risk from comingled contracts. Accelerate process and systems decisions. In a carve-out, critical interactions such as invoicing customers, paying employees, and ensuring product availability must continue seamlessly on Day 1. This requires early decisions on cross-functional processes and systems to be kept, cloned, built, integrated, or retired. In a carve-out, critical interactions such as invoicing customers, paying employees, and ensuring product availability must continue seamlessly on Day 1. This requires early decisions on cross-functional processes and systems to be kept, cloned, built, integrated, or retired. Plan and utilize TSAs strategically. While TSAs are an important mechanism for continuity on Day 1, buyers and sellers have different motivations for a TSA's scope and duration. Instead of operating on general rules of thumb like, 'We need longer TSAs' or 'We need to negotiate the best possible service,' buyers should look at TSAs as a bridge to achieve the integration priorities. While TSAs are an important mechanism for continuity on Day 1, buyers and sellers have different motivations for a TSA's scope and duration. Instead of operating on general rules of thumb like, 'We need longer TSAs' or 'We need to negotiate the best possible service,' buyers should look at TSAs as a bridge to achieve the integration priorities. Set the tone on people and culture. Buyers often has limited visibility into the talent and the capabilities needed to operate. In addition, carve-out employees may feel undervalued, and sellers may be reluctant to let the buyer interact with acquirers work with the seller early to identify key talent, define talent movement metrics, and establish a compelling future vision. They activate leadership to ensure employees feel valued and aligned. Buyers often has limited visibility into the talent and the capabilities needed to operate. In addition, carve-out employees may feel undervalued, and sellers may be reluctant to let the buyer interact with acquirers work with the seller early to identify key talent, define talent movement metrics, and establish a compelling future vision. They activate leadership to ensure employees feel valued and aligned. Plan for and execute Day 1 in a way that mitigates risk and prepares for the future state. While many acquirers see a smooth Day 1 as a win, the best carve-out acquirers prepare for cutovers at TSA exits with detailed plans to deliver synergies and future growth. Carve-outs can be attractive acquisitions that represent unique growth opportunities. But unlike full company acquisitions, carve-outs can break on Day 1 if things are not planned and managed well.
Campaign ME
3 days ago
- Business
- Campaign ME
Do-good marketing: The aisle as a climate battleground
Picture this: you're in a retail store, standing in front of a shelf stacked with products. To your left, a beauty product promises natural, organic and/or sustainably sourced ingredients, recyclable packaging, and contributing to a better future. Just a few steps down the aisle, a conventional alternative tempts you with a discounted product. In that moment, the decision isn't just about environmental ideals – it's a balancing act between good intentions and the practicalities of everyday life. For many consumers, especially in a region where the majority of everyday essentials are still bought in-store, this moment is critical. This raises an important question: are we overlooking one of the most powerful levers for driving real change? The aisle as an untapped platform for persuasion While 50 per cent of global consumers say sustainability is a top purchase criterion, Bain & Company research shows that many struggle to identify sustainable options. When asked to compare the carbon footprints of two products, 75 per cent either answered incorrectly or didn't know. If sustainability isn't clear at the shelf, good intentions won't translate into action. The challenge goes beyond awareness – it lies in the friction at the point of decision. Consumers encounter mixed messaging and ambiguous claims, while everyday purchase factors often steer them toward familiar options, even when they aspire to greener choices. Closing the gap where it matters the most Sustainability needs to be positioned not as an extra effort, but as the easy, intuitive, and even preferable choice. Brands and retailers have the power to shift behaviours where they matter most: at the point of purchase. Small changes can drive big results: Drive behaviour change through rewards: Such as price incentives or temporary discounts on sustainable products to make them more attractive while building a habit. Social proof: Signage indicating that a significant percentage of shoppers have chosen an eco-friendly product can influence others to follow suit. Communication, education, and interactive experiences: Clear, concise messaging at the shelf, coupled with QR codes or digital displays providing real-time information on a product's environmental impact, can engage and inform consumers. Simple adjustments such as strategic product placement, clear environmental, social and governance (ESG) messaging, and interactive educational displays can serve as behavioural nudges, guiding consumers toward more sustainable choices. Real-world insights: making sustainable choices easier Retail environments hold untapped potential. Consider this: a McKinsey study found that products with clearly communicated ESG claims have grown faster than those without. In the UAE, where in-store grocery shopping remains dominant, these insights are being put into practice. In late 2024, Unilever launched a nationwide initiative called 'A Great Deal for Everyone' in partnership with LuLu Group, Emirates Nature – WWF and Mastercard. The campaign ran for four weeks across major cities Dubai, Abu Dhabi and Al Ain and linked everyday purchases to tangible environmental impact through the restoration of 6,000 mangroves. It combined price offers on products with sustainability credentials, with shop-and-win promotions, radio competitions and digital engagement. A dedicated educational activation at LuLu Hypermarket in Al Barsha, Dubai brought the initiative to life, turning a routine shopping experience into an opportunity to learn about mangrove ecosystems and their role in climate resilience. The objective was simple: to reduce the friction consumers face in making sustainable choices by combining affordability, visibility and meaning. The results speak volumes. Nearly 67 per cent of shoppers reported that in-store interventions helped them choose more sustainable products, and 65 per cent felt empowered knowing their purchases contributed to environmental efforts. This translated into a 12 per cent year-on-year uplift in sales across sustainable products, with a 13 per cent increase compared with previous months proving that sustainability resonates when it is made accessible and actionable. From passive shelf space to active change The aisle isn't just where purchases happen; it's where product discovery and consumer education take place. For sustainability to become the default, it must be effortlessly discoverable, clearly communicated, and compelling on the shelf. The opportunity is right in front of us. The question is, are we ready to take it? By Manan Gupta, GM – Beauty and Wellbeing, Unilever – Middle East, Turkey, Pakistan and Bangladesh
