Our cup of tea: OSIM expands with massage-and-tea service

It has now officially penetrated into the high-end market.

OSIM’s massage chairs have been gaining traction as the company continues to innovate its product, especially now that it has partnered with TWG Tea to tap into high-end malls where there is 1.5 times more sales than a store in a lower-end location.

Maybank released a report indicating that TWG Tea will strengthen OSIM’s brand and help to generate higher sales per outlet for massage chairs. Previously, OSIM did not grab much attention in the high-end market but that has turned around for the better with the company’s tea service attracting more customers.
According to Maybank, OSIM’s new products, the uInfinity and uDiva, are the best ever, with uDiva’s 30% price rise a powerful revenue catalyst.

Here’s more from Maybank:

TWG Tea’s luxury brand cachet and high visibility in luxury channels other than its stores (eg five-star hotels and business class flights) is getting OSIMentry into better locations for its massage chair stores where previously they were turned away, typically upper-scale malls. Such stores generate higher sales than stores in lower-end locations. Based on our channel checks, a store in a high-end location can generate up to 1.5 times more sales than a store in a lower-end location. Typically, an OSIM store in a mid-level mall such as Suntec City can sell 6-8 chairs in a bad month and up to 20 chairs in a good month. However, the store in Marina Bay Sands may sell 10 chairs in a bad month and up to 30 chairs in a good month.

After extensive product testing, we think OSIM’s new uInfinity and uDiva chairs deserve to outsell every other generation of chairs and the competition as well. Simply put, this is as close to a human massage experience as one will ever get. In addition, the new chairs are set to enter homes as high-end furniture. Even the uInfinity’s leg module can be flipped over to become an ottoman, turning it into a luxury lounger.