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Wednesday, October 26, 2005

Esthetics only public listed skin care and spa centres in Malaysia

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We see a lot of beauty and skin care saloon and spa centre in Malaysia.
However, among all the group operate in this industry only one company in listed on Bursa Malaysia.

Esthetics International Group Bhd, the only public listed skin care and spa centre in Malaysia, had made a public issue of 23.34 million shares and an offer for sale of 6.66 million shares, at 75 sen for each of the 50 sen par value shares when listing the ompany on the stock exhange few years ago.

The flotation of EIG will raise RM17.5mil. The company plans to use RM2.5mil of the proceeds to establish six new professional skincare centres, RM1mil to refurbish existing outlets, and RM1.5mil for investment in information technology facilities.

The construction of its corporate office and warehouse in Shah Alam will take up another RM2.5mil, and RM2mil will be allocated for additional working capital.

EJG, which is involved in professional skin care and wellness services as well as distribution of skin care and wellness products, secured the first exclusive distributorship for Dermalogica’s range of professional skin care products in Malaysia in 1989.
The contract also allowed it to use the Leonard Drake trademark for its service centres.

Esthetics operates Leonard Drake professional skin care and spa centres, and Belle Lina. Belle Lina was a home-grown concept store which uses the same products as its Leonard Drake stores.

Its executive chairman Lim Yee Soon said the company held exclusive distribution rights for Dermalogica Skin Care (USA) and Eve Taylor Essential Oils (UK) products in eight countries — Malaysia, Brunei, Singapore, Philippines, Vietnam, Indonesia, Hong Kong and Thailand.

AmResearch said the company, which received the authorities’ approval for own franchise (Belle Lina) scheme last year, was likely to kick off the programme early in the second quarter of 2006.

The company expects to have seven franchise centres next year and to increase this to 13 in 2007, and 19 in 2008. It plans to introduce the Belle Lina franchise to Singapore, Hong Kong and Thailand while for Vietnam, Indonesia and the Philippines, master franchisors will be appointed.

Plans were also under way to establish at least three new corporate-owned centres in the KLCC shopping centre, Shah Alam city centre and Lot 10 shopping mall respectively, for RM2mil, it added.


EIG subsidiary EIG Pharma Asia Pacific Sdn Bhd had secured the rights to market and distribute US-based Vitogen Inc's products under EIG’s own brand name in Southeast Asia and Korea.

As at end-March, there are 16 professional skin care centres and two kiosks located in prominent shopping centres. The company also has 300 appointed local dealers, who independently own the skin care centres, according to the research house.

It distributes the US-based Dermalogica range of skincare cosmetics, which contributes 80% of its revenue while the remaining 20% is derived from its own brand of cosmetic products. In its first quarter ended April 30, 2005, EIG’s revenue was RM19 million.

EIG currently exports to Southeast Asia and Hong Kong, with about 26% of revenue derived from exports alone. EIG wants this to increase to 35% by the end of the financial year.

“We do plan to go into China as we have operations in Hong Kong with over 30 staff. While we want to use this to venture into China, we are worried about counterfeits,” said Chan, EIG chief financial officer.

The company recently acquired a RM12 million office and warehouse space in Bukit Raja, Klang to consolidate operations.

Meanwhile, its founder and executive director Melissa M Chen said the “youth obsession” culture, especially among baby boomers, was looking for alternative solutions to combat ageing.

Hence, this is the target market for its recently launched “Radiancy” products which use “healing light” therapy instead of intrusive therapies such as botox.
The company, which launched the Radiancy beauty system in April, had to-date achieved over RM1mil in sales for this beauty equipment, he said.

To broaden the revenue base, the company is likely to venture into the middle-income and mass retail market segments. “We will also be launching our new in-house brand Clinelle, a skincare range with emphasis on botanical extracts to tap the mass market within the next few months,” he said. Clinelle products are already available at major pharmacies such as Guardian, Vital Care and Watsons.


Lim said the widening of its product range through its in-house brands to cater mainly to medium- and low-income segments of the market was a key strategy.

Since 2001, Esthetics had introduced four in-house brands – the Averine range of cosmetics, Efislim range of slimming products, Bioxil for whitening and firming essence and Clinelle cosmeceutical products.

Meanwhile, professional services contribute about 40% to turnover, and the remainder from the sale of products. For the financial year ended Jan 31, the company posted a higher pre-tax profit of RM17.7mil compared with RM16mil a year earlier. Sales also rose to RM80.7mil from RM62.6mil previously.

Esthetics opened its first mobile Dermalogica Consultation Centre (DCC) at the Bukit Raja Shopping Centre in Klang recently.

Lim Yee Soon“We are optimistic about our prospects and target to open 10 more DCCs within the next 12 months,” Lim said, adding that each centre would cost less than RM100,000.
He described these mobile skincare centres as an attempt to make Dermalogica products more accessible to existing and new customers. Currently, Dermalogica is only available at all Leonard Drake, Belle Lina and selected skincare salons nationwide.

Esthetics now has 24 professional skincare centres and two kiosks in prominent shopping centres. The company also has 300 local dealers who independently own skincare centres.

Esthetics also expects to refurbish 12 of its existing Leonard Drake centres at an estimated cost of RM1mil.

On its investment risks, AmResearch said Esthetics' domestic skin care industry was fragmented, with many players in each of the mass market, premium brands and professional skin care segments.

Nevertheless, it added, Esthetics had thrived, and its strong balance sheet showed a net cash of RM32.9mil as at Jan 31.

“Given its planned capital expenditure of RM7mil for the financial year ending 2006, we foresee the group remaining in a net cash position by end-January 2006,” it said.

Monday, October 24, 2005

How Loreal become world largest beauty & cosmetic company


In 1907, Loreal was founded by a French chemist Eugene Schueller in his apartment's kitchen when he created his first hair dyer. He do all the work himself. Doing sales in the morning, delivery in the afternoon and production at night. Only until 1909, he hire his first employee.

How Loreal growth become a world largest company in beauty & cosmetic industry. Actually is via Merger & Acquisition ( M&A ).

In 1934, Loreal acquired a hair shampoo company Monsavon.
In 1935, Loreal launch it first sun protection product Ambrie Solaire.

In 1957, Frabcois Dalle become the 2nd CEO of the company when the founder pass away.

In 1963, Loreal become a public listed company in French and joint venture with Kose to venture into Japan market.

In 1964, Loreal acquired Lancome, this is first time Loreal enter into fragrance and perfume market. It also acquired Garnier, a hair care product.

In 1970, Loreal acquired Biotherm.

In 1973, Loreal acquired a German base Gemey and a pharmaceutical company Synthelabo Pharmaceutical Laboratories.

In 1983, Charles Zviak take over as 3rd CEO. The group R&D team has growth to 1,000 people.

In 1988, current CEO Lindsay Owen-Jones take over as it 4th CEO.

In 1989, Loreal acquired HR , and later La Roche-Posay. Before that, HR has alrealdy acquired Giorgio Armani fragrance and perfume division.

In 1993, It acquired another hair care product inUS, Redken.

In 1996, It acquired Maybelline and venture in to China market aggressively.

In 1998, It acquired a hair care product special for Black and African, SoftSheen Products.

In 2000, It acquired Carson, US haircare product Matrix, niche product Kiehl's and acquired 35% stake in Japanese Designer's brand Shu Uemura.

In 2002, Loreal join-venture with Nestle to form a companuy Inneov.

In 2003, It increase it shares in Shu Uemura to 52% and acquired a brand in China.

As you can see above, Loreal is a company that growth via Merger & Acquisition ( M&A )

Loreal new product under it own brand included Shine Delicieux lipstick.





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Saturday, October 22, 2005

Nanotechology and beauty cosmetic industry




I have a lot of search on "Nanotechnology" on my blog. In Malaysia, a few company in beauty and cosmetic industry claim that there are using nanotechnology on their product. Which allowed their skin care product more easily absorb by the skin, but there is nobody to verified their claim.

However, I discover a company base in Taiwan that founded by beautician that train under chinese traditional medicine before. The company call Luolihfen Beauty Care Professional Inc base in Taiwan.

Miss Luo Lih Fen has over the years collaboration with with research institution in US,Russia, Austria, Hong Kong, French and China and provided 10million Taiwan currency for those institute to develop a lot of machine that pioneer in beauty and cosmetic industry. Including a machine that send out some wave that resulting our brain to release an anti-aging BFGH to our skin
and many other beauty and cosmetic machine.

Her effort later attracted a French train Medical Doctor to join her company as a CEO. His French connection later cause her company to first launch first Human Growth Hormone ( HGH ) product in Taiwan. HGH product is now very common in multilevel marketing company in Malaysia. Most famous brand is Bio-young in Malaysia.

He later launch a Genome product for the company and later a Nanotechnology product for the company from French.

The company claim they have a franchisee in Malaysia on it company website, but no address and contact number provided.



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Wednesday, October 19, 2005

Designer's brand Shu Uemura



In Malaysia, Shu Uemura has counter in Metrojaya department store. However, if you really want to experience the brand. You can go to a boutique inside Lot 10 shopping centre in Bukit Bintang. It located in the ground floor left hand side of the main entrence.

The said whenyou walk in to the boutique. you will be greeted with a cup of green tea and hand towel. As you stroll around, trained make-up artists will be there to advise you on your skin care and make-up needs.

Shu Uemura now is a Desiner Brand under Loreal Group and the only Japanese brand the group has acquired to date.

Shu Uemura founded by Mr Shu Uemura, born in a weathier family. He biggest deam is become an actor. However, due to some kind of illness. He is on the bed for 5 years after completing his high school.This make him unable to follow normal path of what other people did. Study in University and get a job. He thoght of his future while on the bed. Eventually, his decision surprise many others.

At that point of time, when Make-up still not common in Japan. He decided to become a Make-up artist. He feel this comply his interest in art.

In 1955, Shu Uemura venture to Hollywood. He become a professional Make-up artist for a few US-Japan joint venture movies.

After some years of experience. He back to Japan in 1970 and create a brand using his own name, He also found an Academy in beauty and cosmetic.

In 1967, he bring back his legendary make-up removal oil from Hollywood .Since then, shu uemura’s cleansing beauty oils have remained a success for more than 30 years – an achievement in itself in the fast-changing world of cosmetics. The Cleansing Oils « fan club » includes Lauren Bacall, Jeanne Moreau, Jane Birkin,.. Based on a High Performance Oil System, the cleansing oils are used to remove make-up, to purify, and to balance the skin complexion.

With nearly 1 million products sold each year, cleansing oils have experienced steady growth since the launch of the first Balancing Cleansing Oil. The line of products has been completed very recently and now includes a light and enriched version, which was launched in November 2002. shu uemura has also launched a Green Tea Beauty Oil in 2003. Today, more than one cleansing oil per minute is sold throughout the world.

1983 Shu Uemura open it first Beauty Boutique concept in Omotesando, Tokyo, that allowed customers to sit in front of a mirror and see, touch and experience make up for themselves. After 20 years, all department store inthe world are using this concept but Shu Uemura is pioneer at that point of time.

In 1980,it launch it unique eye shadows. 1968, Shu Uemura was the first to merge makeup and art via makeup performances on stage and his seasonal Mode Makeup collections, which, to this day, he continues to inspire and awe twice a year.

shu uemura cosmetics became the first company in the world to incorporate deep-sea water into cosmetic products. Shu Uemura Depsea Water range, based on sea water extracted from a depth of more than 300 metres.

Deep-sea water contains more than 60 ocean minerals to boost the natural function of the skin. Trace minerals such as lithium, magnesium, silicon, selenium, copper, zinc and calcium in deep-sea water have a high affinity with human skin and can quickly absorb to rapidly refresh and hydrate skin. Compared to surface sea water, deep-sea water has three superior characteristics:

- PURITY without any deterioration from acid rain or industrial draining

- RICHNESS of minerals and nutrient substance

- STABILITY in low temperature

shu uemura Depsea Water – aka, “water from the depths of the sea” – is taken from the depth of the ocean where sunlight does not reach, at 320 meters. Pumped directly from the location, it is also bottled at the source, where the shu uemura manufacturing facility resides. Completely free of artificial color, natural aromatic extracts are then added to become lightly scented mists that rejuvenate and hydrate the skin, hair and body. It is also a key raw ingredient used in many of shu uemura makeup and skincare products.

shu uemura makeup brushes are the most luxurious and finest makeup tools available, anywhere!

Every hair on every brush is hand stacked, never cut. The benefit of keeping the soft natural point of the hair (not the hard, blunt edge of a cut hair) is that it is far less likely to irritate sensitive skin, or areas of skin, such as the eye-area, that are prone to sensitivity. shu uemura selects the highest quality kolinsky, sable, goat, pony and badger hair, using hair from the animals' tail that has been shed in the winter months, as this is the softest. Because the hairs have been shed from the tail, naturally, the animal is never harmed. Choosing a makeup brush is similar to how an artist chooses a painter's brush. The type of animal / synthetic hair dictates the porosity and flexibility of the brush. Porosity determines the brush's ability to hold and disperse pigment while the flexibility determines the application style, strong versus soft. For the truest reflection of color, shu uemura recommends Kolinsky brushes, or Kolinsky / Sable blends.

Colour is expetise of Shu Uemura, Shu Uemura has over 100 colour in eye shadow alone. They also have black colour nail product ( pedicure & manicure ) or yellow brown lipstick.

Loreal acquired the 35% shares if Shu Uemura in 2000 only increase it shares to 52% in 2003.






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Monday, October 17, 2005

Kiehl's leverage on big S


Loreal, a company that apply strategy that grow via merger & acquisition (M&A), however will maintain the brand they acquired. The Loreal team would spend time understand the brand's history, philosopher of the founder and core value of the brand.

In 2000, Loreal acquired a niche brand Kiehl's. Although the founder family no longer hold any shares in the company. Loreal has promise not to change the spirits of the brand. Loreal never push the product aggressively and comply with the principle of the brand: "Never advertise". Only one outlet in one territory. Minimum size of the outlet and must able to put in a motorbike.....expanding slowly and low profile manner in major city of the world.

Kiehl's founded by a pharmacist family in New York. Kiehl's give a way free samples to building bound with customer ( 30% of whom are men). Their growth via word of mouth method, attracted a group of loyal customer that like their laboratory. Kieh's never advertise. They are very strict on distribution channel as well.

Kiehl's does not put much emphasis on packaging. Basic plastic bottle,list of ingredient on a white label, no photo of young ladies. Print in black and white label without colour.

The price is comparatively higher (Even baby product). However, they have a lot of "Fans" around the world. In Taiwan, because actress Big S used such product. the product run out of stock during their anniversary celebration.

I think Kiehl's is not yet in Malaysia market.

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Monday, October 10, 2005

Qiqi will be in Malaysia on Wednesday & Thursday


KARINA FOO met actor Simon Yam and his international supermodel wife Qiqi in Hong Kong while they were wrapping up the production of their new television commercial for SK-II’s Facial Treatment Essence (FTE).

While REVITALISED skin with a beautifully supple texture that defies description is testimony of those who have used SK-II skincare products.

Celebrities and ambassadors of SK-II have provided similar endorsements and the brand is well-established in Japan, Korea, Taiwan, Singapore, Britain, Australia and Hong Kong.

"We call it ‘Miracle Water’ because of an ingredient called pitera. I’ve been using in for many years before becoming an SK-II ambassador. Simon only started using it recently and his skin is looking much better," said Qiqi, who has been endorsing SK-II products since 1996.

Their youthful and radiant skin clearly belies their age (over 40) and they attribute it to FTE, their favourite product.

The new advertisement, which took 10 weeks to produce, portrays Qiqi’s life-long intimate relationship with the FTE as her skin condition and needs change over the years.

"When I was 20, FTE helped to keep my skin fresh and moist. When I reached my 30s, it gave it a radiant tone and now it still looks healthy and I’ve received many compliments for my smooth and clear appearance."

Qiqi has appeared in several SK-II advertisements on different mediums but most people remember her in the television commercial for the brand’s Facial Treatment Mask where she comes home after a long day of work and treats herself to an exquisite "facial treatment", much to the bewilderment of her friend over the phone.

This is the first time Qiqi is appearing in an SK-II advertisement with her husband. "I’m very happy to work with Simon because he’s been a great support in whatever I believe in," said Qiqi.

"Many men may be apprehensive about trying something associated with women and I admit that I wasn’t so sure about SK-II and its products. But I saw that Qiqi’s skin was the result of the brand and it didn’t take me long to become an SK-II user. Now I use it before and after any film shooting," Yam said.

Kaewta Tachamahachai, assistant brand manager for beauty care, Asean/Australasia/India, for Procter & Gamble, which manages the brand, said: "We did a consumer study in Malaysia to assess audience responses to the new advertisement and the result was sufficiently encouraging for us to believe that consumers will take to it very positively. We found that they could connect with the advertisement."

"I feel that the new commercial will tell people what FTE can really do for them, especially those who are seeking a natural and simple way to improve their skin," Qiqi said. The advertisement will be screened this month and Qiqi will be in the country on Wednesday and Thursday.













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Saturday, October 08, 2005

Vitamin E, tocotrienol and tocopherol


Vitamin E is no stranger to the world of skincare. Combined with vitamin A and C, the trio are a powerful anti-oxidant force in fighting free radicals that cause premature aging. But, after seven years of research, Dr Saadiah Sulaiman, a dermatologist at Hospital Universiti Kebangsaan Malaysia and her team have discovered tocotrienol, the predecessor to the common form of vitamin E, tocopherol.

According to Dr Saadiah, tocotrienols are 40-60 times more effective than tocopherol in neutralising free radicals. Due to its chemical structure, it is easily absorbed by cells and able to reduce skin redness caused by sun exposure. Indirectly, this prevents pigmentation, a common beauty woe of Asian women.
Interestingly, Dr Saadiah further discovered that this moisturising vitamin not only protected skin during sun exposure but also after, unlike sunblock. But she cautions: “Although tocotrienols protect skin from sun damage, it is not as good as SPF15 so you still need a sunblock.”

Made in Malaysia

What better source to harness the goodness of vitamin E than our very own palm oil. And with the recent discovery of tocotrienol, Malaysians are making full use of this vitamin in locally made skincare, Activ-E.
Activ-E was formulated based on clinical studies conducted on Tocotrienols and a combination of botanical extracts. Manufactured according to pharmaceutical standards, Activ-E addresses all the different skin types.

In Malaysia, a Mesdaq listing company Carotech Bhd, a subsidiary of second board listed pharmaceutical company Hovid Bhd manufacture tocotrienols and claim they control 80% of world market of tocotrienols.

Carotech Bhd a home grow biotechnology company shares price has rise for the past few weeks as they manufacturer biodiesel product which can substitude oil and petroleum and benefit from recent Budget 2006.


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Thursday, October 06, 2005

Dior launch Personal Beauty Analyzer (DPBA)


A beauty consultants might butter you up in the hope that you buy their products? However, a computers don’t know how to lie.

Dior, a brand under LVMH Group launch its latest gadget call Dior Personal Beauty Analyzer (DPBA), an integrated skin diagnosis system that can analyse various skin conditions and offer solutions. It has a wrinkle-analysis tool that is claimed to compare wrinkles by age group, skin
elasticity measure tool, sebum balance measure tool and skin hydration condition check tool.

Each of the personal results obtained will then be compared with an average of the women in your age group from a database of over 5,000 Asian women representing various origins, skin types and age groups. elasticity measure tool, sebum balance measure tool and skin hydration condition check tool.

The DPBA is not meant to replace beauty consultants; rather, the device is used to back up their expertise and help them in their recommendations for each customer. Dior will then devise a personalised skincare beauty plan for hydration, anti-ageing or revitalisation.




In Kuala Lumpur, the analysis is available at Dior counters at Isetan, Lot 10 Shopping Centre and Parkson Grand in Suria KLCC. It is also available at Jusco, 1-Utama Shopping Centre, Petaling Jaya.


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Tuesday, October 04, 2005

Maybelline invent Mascara


In 1913, William, a 19 years old chemist like to help his younger sister Mabel to attract the eye of her admiry. He uses a mixture of chemical together with Vaseline to put on her sister eyelash to make her sister look beauty and attractive. Her sister married to her admiry eventually.

William invented the first Mascara in the history. He used his sister name and the name of his raw material to create a brand name......That how Maybelline born.

William's family operate the business for 50 years. Then, it sold to a drug manufacture Plough in 1967. In 1990, Plough sold the company to an investment group call Wassertein Perella & Company.

Investment banker Bruce Wassertein like to buy a near bankruptcy company, revive the company and dispose off at higher price.

In late 1990, Protect and Gamble ( P&G )buy a cosmetic brand Cover Girl. P&G competitor Unilever eying to buy Maybelline.

Unilever back out eventually. They feel it is difficult to revive Maybelline and do not feel P&G would successfully revive Cover Girl. Loreal CEO feel he able to revive this American brand into a global brand.

To revive a brand does not depend on instinct, Loreal already have similar brand. They have a similar brand in French call Gemey and Jade in German. Loreal feel that by combining Maybelline with it existing 2 brand Gemey and Jade. The deal has more advantage than P&G acquired Cover Girl.

Maybelline already venture to Asia back in 1994, when Loreal acquired Maybelline. Maybelline have penetrate China's market. And have a 300 workers factory in Suzhou. At that point of time, Loreal only has a one man representative office in Shanghai and Beijing respectively.

When Loreal executive visit Maybelline China operation. They discover that they have far behind that P&G in China's market. Thus, they want Maybelline to be a starting base in China, and hope that every Chinese's lady have a Maybelline lipstick.

The merger of 3 brand start immediately. Maybelline star product mascara was introduce quickly into Gemey and Jade preduct line and market it in European Market. Gemey flagship product Volume Express become a product under Maybelline brand as well.

Purchasing of raw material and packaging material quickly reach critical mass to take advantage of economic of scale by requesting a bulk discount. Cost saving quickly turn to budget on advertising and promotion to penetrate market.

They put a New York label under Maybelline. Loreal retain the same advertising company and it slogan at that time:

Maybe she's born with it, maybe it's Maybelline

In Europe, Gemey and Jade would add a Maybelline brand on it packaging. Slowly, it enlarge the Maybelline the make the word Gemey and Jade smaller on it packaging. Today, you still can see Gemey and Jade printed on Maybelline product in Europe.

In 1999, R&D division of Maybelline launch a Nail Polish that able to dry in one minutes. This fulfill the requirement of fast pce environment of office lady. It later make all the product to dry faster, like mascara, eye liner and lip liner.

Water Shine Lipstick is the first "globalize" product that produce by the company. This is also the first product not invent in Europe or US within Loreal Group. It invented in Asia.

Kose was an agent in Japan for Maybelline before takeover of Loreal. Sales of mascara was very good than. After the Loreal take-over, Loreal want lipstick become core product.

Product recommended by US team Moisture Whip too dry. Color and quality also not suitable for Japan market, and it fail in Japan market eventually. Japanese team reinvent the product to make it more suitable for Japanese market.

In August, 2000. Water Shine launch in China, then Japan, then other Asia country. From Tokyo, Shanghai to Singapore. Water Shine lipstick make a record sales.

From Water shine, Maybelline become a global brand. It become the first choice brand for 15-19 Japanese girl. In Taiwan, Maybelline control 40% market shares. Star product mascara even control more than 75%, almost monopoly. In China, Maybelline can sell 10 million units of lipstick per year and growth at 200% per year. In Europe, it control 20% market shares.




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Sunday, October 02, 2005

Skay & Fashion Asia feedback on Lancome lip gloss


I have blog on Lancome invented lip gloss before. I also post a comment on Fashion Asia's blog requesting a feedback on lip gloss( I am a guy, not using such item, do not have close female pal to ask at the moment). Below are the two feedback I received:

From Skay:

Peter : I am using one now and I like it. Juicy Tubes that is.

From Fashion Asia:

i never own one but i tried 1 from the counter. The Tube gloss(colored ones). My opinion? All tube gloss are about the same. Dislike? the fact that the color sink down to the bottom & when u squeeze the tube, the colorless gloss comes out first and then the color, then u gotta mix mix...abit messy.

Too bad! Did any executive from Lancome or Loreal reading this?

Skay & Fashion Asia:

Thanks for both of your feedback.


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