I was outstation to Ipoh on Tuesday and Wednesday. I find a trend among beauty saloon in Ipoh, Penang and Klang that they have shifted their core business.
Beauty saloon business at the above location has been saturated and too competitive. Business not very good due to stiff competition. Price and margin has come down drastically and it is very difficult to make money and very difficult to recruit skillful staff and they tend to open their own saloon after they learn the trade.
A lot of beauty saloon has shift their focus to "retifying underwear". "Retifying underwear" is a type of "Retifying Lingerie" for slimming and enhance body figure. The product cost 4 figure each. Thus margin is good.
However, such a high cost do not deter lady to buy it. Ladies that do not satisfied with their body figure would buy one to try it. After they try it. They find their boy friend, husband, partner discover they are much prettier than before. It wouldn't take long they would buy a second one so that they able to change and wash their first one.
Later, their lady friend also find they are more attractive and ask what is the secret. Then, they would refer their friend to buy one. This lead to great demand of such product.
There is a rumor saying that they are a few beauty saloon in Ipoh, Penang and Klang invested RM50 thousand to buy the product as a stock. Within a month of their purchase. Value of RM50 thousand stock has been finished selling. If the margin is only 10% only. They earn RM5,000 gross. I know they definitely earn more than 10%! This cause a lot of beauty saloon owner devote their time to this kind of business rather than their own saloon business which is quiet recently.
All the product are imported from China which has low production cost.
The product was initially introduce to Malaysia on direct selling or multilevel marketing basis. First company is Lumimi call reshaping lingerie. Later, another direct selling or multilevel marketing company Elken also join the bandwagon call Foundation Lingerie. Now, the market was fload with a product call Lightness from Qianying International Co. Ltd. This is a Hong Kong company combine with technology from Japan with low cost factory in China. This company is on distributor basis rather than Direct Selling and Multilevel marketing basis. Thus, distributor do not have problem with constantly changing commission calculation basis by Direct Selling or Multilevel Marketing company or face a problem of unreasonable upline in direct selling or multilevel marketing company. The company slogan " A revolutionarily undergarment, the myth of body shape changing come true"
Local lingerie producer like Audrey ,Caely Holding Bhd should venture into such lucrative market. Despite our manufacturing cost is higher compare with China. Margin for such product is so good that company might earn lesser margin compare with manufacturer of China but there is still a lucrative margin to be earn.
Other non manufacturing distributor listed on Bursa Malaysia included Warisan TC Holdings Bhd which distribute Wacoal brand from Japan. Another company is Greatpac Group
Tag: Beauty :Malaysia: Health & wellness
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