Catering company has big plans for Chinese market
By WANG YING in Shanghai | chinadaily.com.cn | Updated: 2024-07-03 23:59
French catering service provider Sodexo is looking to further tap into the Chinese market via localization and enhancing its expertise over the next three to five years, according to a senior executive of the company.
"(We are) doubling down on the China market, starting with acquiring and integrating the ex-Compass business in China. And we still looking for investing opportunities and partnerships to further grow in the China market," said Isabelle Hannedouche, managing director of Sodexo in China.
Sodexo has completed the acquisition of the Compass business on the Chinese mainland this year. This move is set to strengthen Sodexo's position in food markets, enhancing its presence and expertise on the Chinese mainland.
"It allows (us) to complement a portfolio of marquee clients and to scale up and develop synergies," said Hannedouche. Following this acquisition, she said, Sodexo will serve more than 1.2 million consumers every day.
The deal is projected to raise the company's market share in China up from 1 percent to 2 percent in total outsourced food market, and from 6 percent to 10 percent in the Sodexo-addressable food market.
"Looking ahead, the China market is projected to contribute over 600 million euros ($648 million) next year, making it one of the top 10 countries in our global business," Hannedouche said. In 2023, Sodexo's revenue in China stood at 495 million euros.
According to Hannedouche, such growth is supported by the market's size and potential, especially following the acquisition of the Compass business.
"We are seeing the market growth slow down due to the economic downturn and headwinds," she explained.
"The double-digit era is gone with rising uncertainties such as global decoupling, unemployment, and low birth rates. However, we do believe there are still opportunities for us to target such as industry upgrading, green development and silver economy.
"The government is committed to further opening China's market to foreign investment to boost business confidence.
"Aligned with the government development directions, there is room for growth in those future-oriented and people-oriented industries, such as advanced manufacturing and life sciences," Hannedouche added.
