Zhulian plans to tap Vietnam, Philippine markets
Wednesday May 8, 2008
PENANG: Zhulian Corporation Bhd, a multi-level marketing company, is planning to spread its wings to Vietnam and the Philippines after having established itself in other major markets of the region.
"We will be moving into the Philippines unofficially soon to test the market with our nutritional, food and beverage products," said group managing director Teoh Meng Keat, adding a market research showed the two markets were very promising.
He said the addition of the two countries would increase the company's market population base to more than 500 million people. The company already has a strong presence in Malaysia, Indonesia, Singapore and Thailand with 366,000 distributors marketing its wide range of products.
With 888 products marketed under 31 brandnames ranging from costume jewellery and nutritional supplements to food and beverage, the company is confident of penetrating the Vietnam and Philippine markets.
"Our plan for next year is to focus on aggressively developing the business in East Malaysia by setting up a warehouse, besides maintaining a strong presence in Thailand, Singapore and Indonesia," he said after the company's AGM yesterday.
Zhulian, which was listed in April last year, began as a gold-plated jewellery business 19 years ago. It has since expanded into health supplements and food and beverage products.
The company is in the midst of adding another manufacturing facility to its two existing plants in Penang. The RM50 million plant in Bayan Lepas which will be completed by the third quarter this year, could double or triple its production capacity over the next two to three years.
Plans are also afoot to start a new line for the production of tablets and capsules for its health supplements and to move into liquid food supplements next year.
In the year ended Nov 30, 2007, the group recorded a lower consolidated turnover of RM220.55 million, compared with RM225.38 million a year earlier, while profit before tax dipped to RM74.35 million from RM76.20 million.
Teoh said the decrease in turnover and profit before tax was mainly due to a decline in the local consumers' purchasing power, intense competition and higher raw material prices.
Costume jewellery contributed 27% of its sales, while nutritional products 20%, food and beverage 16%, while the rest were from its other products.
On competition from other multi-level marketing companies, Teoh said all these years since its inception, Zhulian had had its own niche market.
"We will continue focusing on this and also carry on with our compensation plan for our distributors, which is an important factor to attract them to work with us," he added.
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