Here's why Osim is unfazed by China's slowdown

Credit tightening will not affect sales.

According to CIMB, management is not worried about a slowdown in China. This is because most of the purchases are paid by cash, not credit, unlike the other four markets.

"Any tightening of credit would not affect sales. OSIM will continue to selectively open 20-30 stores annually. It could easily open more but stressed that being selective about the malls and department stores to operate in is crucial to profitability. SSSG in China is high single digit," says CIMB.

Here's more:

TWG could contribute significantly soon. TWG is performing well as management’s deliberate positioning of the brand as the “Louis Vuitton” of tea has been very successful. Gross margins are north of 70% and the brand’s reputation continues to grow.

This business could be a bigger contributor to earnings than GNC over time. Earnings contribution today, however, is negligible. Management is continuing to secure new stores in high-end malls.

It will be opening stores in KLCC, Jakarta and Bangkok, with the Thai princess due to grace the opening of its Bangkok store in Siam Paragon.

TWG is also available at luxury hotels and the premium class of some airlines. Hotels in particular are a fast-growing distribution channel. Agreements have been signed with major hotel chains.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia