Sat, Jun 04, 2016 page13

• Jinli Group steps into cosmetics with facial masks

  ‘MEGUSTAME’: Jinli plans to expand the brand into a full line of cosmetic and skin care products for sale first in Taiwan, then China and Southeast Asia

  • By Ted Chen / Staff reporter
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  Jinli Group Holdings Ltd (金麗集團控股) yesterday launched its new line of facial masks, marking the first step in branching out from its core apparel business to tap into the cosmetic products market.

  The company, which operates two apparel and shoe brands in China, said that the new facial mask business is expected to contribute about NT$75 million (US$2.3 million) in domestic sales this year.

  “Marketed under the name MegustaMe (美愛美), we aim to expand the brand into a full line of beauty and cosmetic and skin care products to include cleaners, moisturizers and serums,” Leads Bio Co Ltd (領先國際生物科技) general manager Jessie Yang (楊淳淳) said.

  Leads Bio is an affiliate tasked with overseeing the marketing of Jinli’s new business venture, in which it holds a 51 percent stake through a NT$60 million investment.

  PRODUCT LAUNCH

  At a product launch in Taipei, Yang outlined plans to promote the new products in Taiwan before expanding to China and Southeast Asia.

  The company has secured an 18-month deal extending exclusive “brick and mortar” retail rights to Watson’s Personal Care Stores (Taiwan) Co Ltd (台灣屈臣氏) and is collaborating with the nation’s largest online retailers, including PChome Online Inc (網路家庭) and Momo.com Inc (富邦媒), she said.

  In China, the products are to be sold at displays installed at Jinli’s retail locations for women’s shoes and apparel to leverage foot traffic there, in addition to partnering with the e-commerce operation of WeChat, China’s largest messaging platform.

  Yang said the facial masks sold in Taiwan would be produced by local contract manufacturers, adding that the company is to assess local market reception with an initial batch of 2.5 million units.

  While Jinli is still preparing to launch the new products in China, the company is readying two production lines in Zhangzhou, Fujian Province, which are capable of producing 100 million units annually, generating a potential sales contribution of NT$100 million, she said.

  WORD-OF-MOUTH

  The falling number of Chinese tourists to Taiwan might affect the company’s strategy of garnering word-of-mouth marketing from visitors returning home with face masks purchased during their visit, Yang said.

  However, “economic downturn impacts are expected to be limited, as we operate in the so-called second and third-tier cities in China, where consumption levels have remained resilient, growing 11 percent faster than first and second-tier cities,” she said.

  “Expanding the new brand is crucial to maximizing gains to offset the costs and risks of the new venture, while diversifying Jinli’s revenue sources,” Jinli executive special assistant Andy Lee (李校德) said.

  In the first four months of this year, Jinli reported that aggregate sales dipped 1.03 percent annually to NT$1.81 billion.
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