Core Insights - The article highlights the success story of Leshu Shi, a Chinese company that has become a leading player in the African hygiene products market, achieving significant growth and market penetration in a relatively short period [6][9][10]. Company Overview - Leshu Shi was established in 2009 as a small division of a trading company and has since evolved into a multinational giant, selling nearly 6 billion hygiene products annually across over 30 countries [9][20]. - The company went public on November 10, raising HKD 23.8 billion with a market capitalization of HKD 211.94 billion, and its stock price surged by 33.51% on the first day of trading [7][8]. Market Position - By 2024, Leshu Shi became the top seller of baby diapers and sanitary pads in Africa, surpassing international giants like Procter & Gamble and Kimberly-Clark [10][32]. - The company holds a 20.3% market share in the baby diaper segment and a 15.6% share in the sanitary pad segment, making it the "dual champion" in Africa [29][30]. Product Strategy - Leshu Shi's product strategy focuses on essential needs, targeting both baby and female hygiene products, with baby diapers accounting for over 70% of total revenue in 2024 [22][23]. - The company offers a range of products under various brands to cater to different market segments, including Softcare for the mid-to-high-end market and Cuettie for low-income consumers [25][26]. Financial Performance - In 2024, Leshu Shi reported revenues of USD 454.39 million (approximately RMB 3.2 billion) and a net profit of USD 95.11 million (approximately RMB 670 million) [28][29]. - The company has experienced a revenue growth rate of 28.4% from 2022 to 2023, but the growth rate slowed to 10.5% from 2023 to 2024 [80]. Market Opportunity - The African market presents significant growth potential, with a low penetration rate of baby diapers and sanitary pads at 20% and 30%, respectively, compared to over 70% in developed markets [38][39]. - The African population is young, with 36.5% of global births occurring in the region, indicating a continuous demand for baby products [35][36]. Competitive Advantage - Leshu Shi's competitive edge lies in its localized production strategy, which reduces costs and improves efficiency by manufacturing products within Africa [44][45]. - The company has established a deep distribution network, with over 2,000 wholesalers and 400 distributors across 12 countries, ensuring product availability in rural markets [50][53]. Challenges Ahead - Despite its success, Leshu Shi faces challenges such as slowing revenue growth, reliance on low pricing strategies, and potential fluctuations in raw material costs [82][89]. - The company must enhance its research and development capabilities to avoid falling into a low-price competition trap and to innovate its product offerings [93][96].