Outlook for the health and lifestyle industry and our products
Our Directors believe that the overall outlook for the health and
lifestyle industry and the demand for our products is positive based
on the following factors:
(i)Increase in consumer sophistication and disposable income
With higher levels of education, the global trend of urbanisation
and increase in exposure to information, consumers today have become
more sophisticated. We believe that consumer sophistication results
in consumers becoming more health conscious and paying more attention
to personal grooming. Furthermore, our Directors believe that there
will be an increase in the levels of disposable income and consumer
affluence as a result of higher standards of living in developing
countries such as Malaysia, Thailand and the PRC. Our Directors
believe that increased consumer sophistication, disposable income
and consumer affluence in the markets we operate will continue to
drive the demand for our cosmetics, skin care, nutritional supplements,
personal care products and healthcare equipment.
(ii)Trend towards preventive healthcare
With increase in health care costs in most countries and longer
life span, consumers have become increasingly aware of the need
to take a pro-active approach in managing their health and well-being.
We believe that this has fuelled the trend for consumers to invest
in preventive healthcare. Our Directors believe that this trend
augurs well for the demand for our nutritional supplements, personal
care products and healthcare equipment.
(iii)Advancement in technology
With the advancement in technology, we are able to introduce new
products as well as innovative forms of packaging and presentation
to target the specific consumer needs at economically feasible costs
of production. For example, the ultra-filtration membrane technology
used for the healthcare equipment, PUREfLO, otherwise employed in
industrial applications such as NEWater production, is now available
for household use. We are also able to capitalise on advancement
in technology to introduce innovative forms of packaging and presentation
for our products. Leveraging on our technical know-how, we expect
to continue to introduce new products and enhance our packaging
capabilities to meet the healthcare needs of consumers, thereby
generating increases in demand for our products.
In view of the factors discussed above, our Directors believe that
barring any unforeseen circumstances, the growth prospects for our
Group’s business are favourable. Additionally, we have 3 distribution
channels which gives us flexibility in marketing our products as
we can tap into any of these channels for our future expansion.
This also allows us to diversify our revenue base from each channel
and cushion any negative impact on any of the distribution channels.
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