Friday July 30, 2010

Ge-Shen to diversify into cosmetics, skincare trading

By ZAZALI MUSA
zaza@thestar.com.my

JOHOR BARU: Plastic moulding maker Ge-Shen Corp Bhd is setting up a trading arm to distribute cosmetics and skincare products as part of its diversification plan.

Group managing director Wong Yee Keh said apart from driving revenue, the move would also help the company to reduce its dependency on the plastic moulding activities.

Wong Yee Keh says response to the skincare products is good.

He said competition in the segment had become more intense both in the local and overseas markets.

Wong said demand for plastic mouldings was largely determined by demand in electronics and electrical products, office automation and automotive parts and components.

“The trading arm has been appointed the region’s sole importer for the US-made water-based skin care products using the liquid nano technology,” Wong told StarBiz after the company AGM recently.

He said the products were only available from beauty saloons distributed by 20 appointed agents in Johor Baru and Kuala Lumpur presently.

Wong said the company planned to have 120 agents in Malaysia and Singapore in the next two years and also increase the number of beauty saloons selling the products in the two countries.

Wong said response to the skin care products was good, adding that they were suitable for both genders and users could see the immediate results after using the products.

He said the liquid nano technology was a breakthrough in the dermatology world – not many beauty houses had successfully produced the products based on the method.

“We are going to introduce the products in Indonesia, Vietnam and the Middle East early next year via multi level marketing system,” said Wong, adding that the system was more suitable in these countries due to the large population base and they could buy the products on credits especially in Indonesia and Vietnam.

Wong said as for the Middle East markets, the water-based products were suitable for Muslim consumers as they were free from alcohol and animal fats.

He said the company would bring more skincare and beauty products for both men and women from Europe, United States and Japan to Malaysia, Singapore, Indonesia, Vietnam and the Middle East.

For the year ended Dec 31, 2009, Ge-Shen recorded RM7.99mil net loss on RM68.60mil revenue from RM6mil net loss and RM63.94mil revenue in FY2008.