Skin MD Natural on YouTube

I have received an email from Mr Pete Grimaldi of Skin MD Natural which give me a link to YouTube, claim it show how Skin MD Natural protecting skin from rock-dissolving acid!

The Post get 14 comments. As I unable to review the fact on YouTube, view it at your own risk. I have provided link to YouTube at the bottom of this page.


Technorati Tag: Cosmetic : Beauty :Malaysia: Skincare

INS Bioscience leave MLM business

Yesterday, Nanyang reported that Mesdaq listed INS Bioscience going to leave it direct selling business to venture into ecommerce business to create a portal for herbs product.

Second Board listed Hai-O. Start from chain of retail outlet selling chinese medical product. Venture into direct selling and MLM business. Today, direct selling and MLM business contribute more than half of it revenue and product, become the company core business and money earner.

INS Bioscience however, start from direct selling and MLM business. Last year, the company claim that it OEM business contribute more profit than it direct selling business.

Yesterday, news of the company plan to cease it direct selling business and launch it online herbs portal on 1st July 2007 was reported on Nanyang.

A search on Google show that China Press also reported similar news. However, China Press make a contradict report. It reported that the company already launch the portal in August 2007 and has attracted 1,500 distributors todate. However, the company still showing a loss of RM950,000 on third quarter of 2006.

Nanyang reported that each distributor or franchisee have to pay RM30,000 and would get RM38,000 value of stock in return. However, the company turnover in third quarter 2006 drop from RM23.57 million to RM19.47 million in the corresponding period. Drop 17.4%. The figure doesn't tally? Shouldn't 1,500 new franchisee paying RM30,000 each should get RM45 million?

INS Bioscience wheat grass product get fierce competition from Yigaho. It Insupro forte's bitter gourd product facing competition from OTC low cost product like Main Board listed CCM's Bitter melon and non listed company's Diabegard.

MLM transform to ecommerce is a trend given a lot of MLM company has slowly move to ecommerce.

However, INS Bioscience strategy that required franchisee to pay RM30,000 up front seem contrary to normal reseller or associate that required minimum capital.

This requirement just like recruiting direct selling's stockist that required to pay an up front cost for stock. However, it is not easy for a direct selling company or MLM company to recruit 1,000 to 1,500 stockist nationwide each paying RM30,000. A target to recruit 5,000 to 6,000 by year end seem rather ambitious for the company. Let see whether the company able to do it this round?

Technorati Tag: Biotechnology pharmaceutical Malaysia Health & wellness MLM Direct Selling klse

Ogawa Vs OSIM

Malaysian must be familiar with the two leading brand of massage chairs......Ogawa and OSIM.

Previously, only OSIM International Ltd listed on the Singapore Exchange.

Last month. Ogawa World Bhd, previously operated under Healthy World Lifestyle Sdn Bhd listed on Bursa Malaysia.

Ogawa is the market leader in Malaysia, with a 44.8% market share, according to a report by Affin Investment Bank. Its closest competitor, Singapore-listed OSIM International Ltd, holds a 32.2% share.

However, OSIM has grown to a market value of almost RM1bil, and it even partnered Temasek Holdings Pte to take over Brookstone Inc, a chain store in the US.

Ogawa, which only has a market value of RM137mil at the first week of it value.

If Ogawa able to grow it market size to OSIM's billion level without any right issue,bonus issue and private placement. It share price have to jump at least 9 times higher from now.

OSIM also acquired nutrition retailer Global Active Ltd, which operate GNC outlet. GNC reputable for it weight loss product.

Ron Sim, the man whose company is almost synonymous with massage chairs, has come a long way. More than two decades ago, he was struggling to keep his 100 sq ft electronics-goods shop at People's Park going.

"Back then, I was trying to survive," says Sim, chairman and chief executive of Osim International, which has since grown into a 560-outlet health and fitness product marketing company that has a presence in every continent except South America, the Arctic and Antarctica.

Oga­wa World Bhd started out as a trading business for household and electrical products such as water purifiers in 1986. The company, which was started by Wong Lee Keong and Lim Poh Khian, entered the health and wellness market 10 years later.

"massage culture" in the US is still in its "infancy", where the penetration rate is only about 1% of the 100 million households. In Asia, like Japan, for example, the penetration rate is around 30%, says OSIM's Sim.

OSIM has a upper hand in US market with the acquisition of Brookstone. Ogawa, has a catch up game to play.

Another risk factor is increasing competition from its existing competitors as well as new smaller entrants from China. "The emergence of copycat products at competitive prices will likely pose a key threat to the growth potential of mainstream retailers like Ogawa," states Hwang-DBS. As a result, Ogawa is looking to diversify its product range by introducing up to 10 new products per year. The company is also looking to grow its Deki brand, which is targeted at lower-income customers.

Over-dependence on major suppliers is one of the Ogawa's risks. Its two major suppliers, Fujiryoki (Shanghai) Trading Co Ltd and Xiamen Comfort Science & Technology Co Ltd, contributed to 64.4% of its products as at September last year. However, Ogawa has a healthy cash pile of RM34.9 million and no borrowings.

Surprisingly, both Ogawa and OSIM also market Blood Pressure Monitor,Thermometers, and Weighting Scales. It is not sure both company sources the product from the same suppliers?

Technorati Tag: Biotechnology Malaysia Health & wellness klse massage