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Showing posts with label Sofnon. Show all posts
Showing posts with label Sofnon. Show all posts

Monday, October 09, 2006

Taiwan's GLC in beauty and cosmetic industry, from salt to biotechnology

Taiwan veteran and most successful beauty and cosmetic brand is driven by private sector company call Sofnon. Sofnon own several international brand like New York Always Black , German Nobori, low cost product for teenages PLUS+ , and Italy in Ocean. Chairman,Champion Huang started the company in 1977.

In 2001, Taiyen or Taiwan Salt Industrial Corporation(A GLC) diversified to biotechnology and beauty and cosmetic industry. In 2003, the company has become a giant in beauty and cosmetic industry in Taiwan. Beauty and cosmetic industry become a strategic industry that promoted by Taiwan government. With low entry barrier lead to a number of new entrant in the industry.

To date, Sofnon and Taiyen remain the leader in the industry.

Bio Core Inc, one of the top three biotechnology company in US, invested 1.7 billion in Research and introduced Nano & Biotechnology series of Collagen products for medical treatment. Bio Core claim that there are the first company to obtain FDA approvals for sale of collagen based wound care products in it website.

Taiyen, uses Collagen products from Bio Core Inc and turn it into Pharmaceutical type products namely Medifil and Skin Temp II which are commonly use in the hospital for diabetic patient with chronic lesion and also burned patient for skin repair treatment respectively also known as skin grafting surgery.

The product is suitable for use on all kinds of cuts and wounds on the skin, such as burnt skin, scalded skin, difficult to heal wounds of diabetics patients. The result are exceedingly proven.

Taiyen together with Bio Core spent 1.5 billion to develop this technology.

International cosmetic brand Coco Chanel try to bid for the distribution right from Taiyen but Taiyen eventually grant the right to a direct selling company in Taiwan call Topoa.

The company have a series of product. However, their flagship product call Bio Collagen A+B Skin Repair Essence. A few of my friends used to spend RM5,000 for 5 treatment in beauty salon, this mean each treatment equivalent to RM1,000 but they never see their improvement on their skin after 5 treatment.

Most of my friends who spend just RM424 on the product claim that the result is much more visible after a few day. Their husband also claim that this low cost product is far more effective than the expensive treatment from beauty salon.

This is because the product developed using a technology use by pharmaceutical product to heal burn patient.

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Saturday, November 19, 2005

Shiseido, the first to set up counter at Department Store in Asia

Shiseido is the largest beauty and cosmetic company in Japan and it rank No 5 in the world largest beauty and cosmetic company. After Loreal,Unilevel,P&G and Estee Lauder.

Shiseido, Loreal and Estee Lauder is consider the only three focus company in top 10 beauty and cosmetic company in the world. Others like Unilevel and P&G is diversified company in other industry as well, like food and detergent.

Loreal and Estee Lauder acquired a lot of brand over the years. However, to maintain each individual brand is an expensive process. Each brand must have achieve a critical mas and economic of scale to cover cost of spoke person, R&D, cost of international channel.

Unilevel and P&G has start streamlining their brand over the years and only maintain their first and second brand in each category.

Shiseido also face the problem of too much secondary brand.Which face difficulty in resources allocation. A lot of brand unable to recoup the resources invested.

Thus, Shiseido plan to streamline it brand from 140 to 35 (Like Za, Uno and Fitit) at the end of 2005. This will further reduce to 20.

Loreal, however view that if you have 5 or 6 brand in each channel , you may have problem of too many brand and overlap in investment. But if you only have 2 brand, it is insufficient. Loreal now have 4 brand (L'Oreal Professional, Redken, Matrix and Kerastase) under it haircare professional product.It is function much better than only have 2 brand (L'Oreal Professional and Kerastase)previously.

Taiwan Sofnon chairman,Champion Huang which own several international brand like New York Alway Black , German Nobori, low cost product for teenages JUSTa100 ,Japanese herb PLUS+ , and Italy in Ocean said that Shiseido is the first company that market their product via professional counter in Department Store. This is a one of the Japanese marketing and management method.

In Malaysia, Shiseido is distributed by Tung Pau, a wholly own subsidiary of Warisan TC Holdings Bhd previously.

Warisan TC Holdings Bhd, a company under Tan Chong Group, which distribute Japan Nissan car in Malaysia. Their connection build up with Japanese during they become distributor of Nissan vehicle enable them to secure a franchise of Shiseido in Malaysia.

With globalization and liberalization of trade. A lot of automobile company take back the distribution right like Honda.

Beauty and cosmetic company Shiseido also doing the same. Shiseido Malaysia Sdn Bhd, a 50-50 joint-venture company between the Shiseido group and Warisan TC Holdings Bhd set up to handle the distribution of Malaysia since April 2005. Thus, now the distribution of Shiseido in Malaysia is operate by Japanese despite Warisan TC Holdings Bhd still half 50% shares.

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