Yin Fong cosmetic's advertising billboard can be seen in major town in China. However, few tourist from Malaysia know that the brand actually origin from Malaysia!
Yin Fong, a cosmetics brand which first entered the mainland in 1983, was the bestseller on the domestic market in the early 1990s. The company's sales hit 500 million yuan in 1992. Yin Fong F-Pearl Cream, its most popular product, is still etched in the memory of many Shanghai consumers.
In 1999, however, with the sudden death of Yew Mui Leong, then chairman of Yin Fong, the company's domestic business took a dive.
Yew's death was partly responsible for Yin Fong's decline as the firm suffered a great loss due to wrong investments. The company had eight Chinese factories at that time but none of them turned profitable in the late 1990s.
"Poor management should be blamed," said To Wai Tai, Yew's wife and the group's current chairwoman, who was once a housewife. "In the past we did not pay enough attention to develop new products. The running costs of the plants had been too heavy for us to bear."
Compounding the problem, Yew had also devoted himself to charity events and had sponsored various social organizations. He won praises for his generosity but the company's financial woes worsened.
Yin Fong was almost wiped out of the market when competition in the domestic cosmetics market heated up with the entry of foreign giants such as L'Oreal and P&G.
In January 2004, the company, Nan Yuan Yin Fong Group Co Ltd, has invested 120 million yuan (US$14.5 million) on the mainland to try and regain the popularity of its brand in the early 1990s.
Nan Yuan Yin Fong Group was founded by a Malaysian based in Kluang, Johor, Malaysia, Yew Yin Fong. Yew Yin Fong has 7 sons and 6 daughter. Yew Mui Leong, who in charge of cosmetic business in China, is no 5 in the family of 13 brothers and sisters. Yew Yin Fong, the father, send no 3rd and 5th sons together with two sister back to China in 1966.
After, cultural revolution in China, they requested their father to apply to the authority to relocate them to Hong Kong but was being refused by the father. Eventually, the eldest son make application of migrate to the authority without the knowledge of the father in 1975.
After Yew Yin Fong pass away in 1977, 2nd of the family set up a base in Kuala Lumpur from Kluang. Whereas Yew Mui Leong in Hong Kong expand the business to China. Kuala Lumpur office,Nan Yuan Sdn Bhd and Nan Yuan Textile Import & Export Sdn Bhd located in Jalan Petaling in Kuala Lumpur, is behind S&M shopping centre. Kuala Lumpur office, other than textile operation , also responsible for procurement of raw material for cosmetic factory in China. A sister also expand business in New York. Kluang business was headed by another 3 brothers.
When Yin Fong cosmetic was first launch in Guangzhou, China. The response was especially good. One thousand dozen was sold on the first day. It is the first overseas brand in China. US cosmetic giant P&G and Johnson & Johnson has an uphill task to penetrate the market dominated by Yin Fong cosmetic.
The family also operate a hotel : Hakkas Hotel in Guang Zhou, China.
It is not sure why the group never market such cosmetic brand in it home country, Malaysia.
Tag: Cosmetic : Beauty :Malaysia: Health & wellness Skincare
