Business

Saturday May 30, 2009

Forest’secret taps into secrets of local herbs

By EILEEN HEE


THE secret is out. It’s a homegrown brand that taps into the secrets of the forest, which is similar to what Body Shop does in its extensive use of natural and native ingredients from around the world in its product range.

Developed and marketed by Forest’secret Sdn Bhd, Forest’secret is a three-year-old herbal brand that uses only herbs that originate from Malaysia in its range of products which extends from chocolate, coffee, tea, cosmetic and skincare to health supplements.

Datuk Ahmad Shalimin with some of Fore st’s secret products

“Our products are all herb-based and about 10% cheaper than Body Shop products,” general manager Intan Hyriatee told StarBizWeek.

Headquartered in Kuala Lumpur, Forest’secret has 20 suppliers that make the products on a contract basis for the company.

Tongkat Ali, Mas Cotek, Misai Kuching, Kacip Fatimah, Roselle, virgin coconut oil, henna, piper betel, Centella Asiatic and lemongrass are among the ingredients used in the products.

Born from the government’s initiative to establish a herbal hub in the country, the company seeks to champion the Malaysian herbal industry and now boasts a product range of some 200 items.

“There are plans to increase our product range, and perfume and fragrance is next on our list,” Intan said.

There are four main product categories: body and skincare; aromatherapy and spa; health food and drinks; and cosmetics. Prices range from RM10 for a bar of soap to RM200 for a bottle of health supplements.

Forest’secret is a wholly-owned subsidiary of Malaysia International Franchise Sdn Bhd (MyFranchise), a franchise investment holding company and investment arm of Perbadanan Nasional Bhd.

“Besides its name, what’s special about the brand is that its product range is among the most comprehensive available in the market today,” said MyFranchise chairman Datuk Ahmad Shalimin Ahmad Shaffie.

He added that 70% of its customers were Malays, while the company’s target market were teenagers.

At present, the company has eight outlets in The Curve, Sunway Pyramid, One Utama, Central Market, Tesco Ampang (all in the Klang Valley), Jonker Street in Malacca, Tesco Malacca and Plaza Angsana in Johor Baru.

Shalimin said Forest’secret would have outlets in airports nationwide like Miri, Kota Kinabalu, KL International Airport and the low-cost carrier terminal by year-end.

“New outlets will also be opened in Kuala Terengganu and Wangsa Walk, Kuala Lumpur, next month,” he said.

Of the new outlets, three will be under licence. Forest’secret targets to have 10 licensees this year.

It is also planning to tap markets like the Middle East and Hong Kong.

“I believe herbal-based products better suit the Asian market than the Western market,” he said.

Shalimin said Forest’secret also formulated and distributed its body and skincare products to hotels and resorts.

It also markets its spa products to resorts and boutique spa operators.

Shalimin said Forest’secret licensees were offered three business concepts of herbal shop, herbal kiosk and herbal cart with an initial capital of RM50,000 to RM300,000.

With yearly sales of RM1mil from its eight outlets, he said the company was targeting a 40% growth this year despite a possible contraction in consumer spending.

“We are opening up business opportunities for single-level marketing and a dealership programme,” he said, adding that it also planned to open four or five kiosks in local universities this year.

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