KUALA LUMPUR: Singapore-based Luxasia Group, which recorded sales of over RM772mil last year, is eyeing partnership agreements with brand owners for a more sustainable business model.
Luxasia carries more than 100 brands including Benefit, Bourjois, Banana Republic, Elie Saab, Makeup Forever, Philosophy and Yves Rocher.
The company has been in Malaysia for the past 28 years.
Chief executive officer Patrick Chong said the company preferred to forge joint-venture (JV) agreements with brand owners where both parties could increase commitment in terms of investment and management.
“This alignment of interest from both parties in a JV to bring overseas brands to this region is different from the distributorship agreement that normally will be reviewed after three to four years.
“Luxasia now has nine JV subsidiaries in nine markets in Asia,” he told StarBiz.
Another growth factor that the company is banking on, according to Chong, is the focus on the “masstige” market – a hybrid segment between the prestige and the mass markets – that sees Luxasia bringing in middle-range brands such as ZA and Yves Rocher.
“This effort towards reaching a broader market segment is in line with our vision to make a difference in every woman’s life and our mission to be Asia’s beauty market maker,” he said.
Chong added that Luxasia had also been opening its own stores including the stand-alone Benefit outlets.
On Luxasia’s strength as a partner for brand owners that have limited resources and knowledge of the regional market, Chong said the company not only had the relevant contacts and experience in well-established markets like Hong Kong and Singapore, but also similar capabilities in growing markets such as Thailand, Indonesia, Vietnam and Myanmar.
“We have strong front-end power, as we have good relationships with a lot of departmental stores such as Robinsons, Sogo and Parkson.
“We also are close to chain-store companies like Sasa, Vivo, Sephora and Watsons. Some good brand owners around the globe may not have the experience and capabilities to penetrate the regional markets and that’s where Luxasia fits in.
“This is, of course, supported by our investment in state-of-the-art technology and systems,” he said.
For Malaysia, Chong said sales were growing.
He added that the beauty industry was here to stay, and that there was a need to attract more local talent.
“I notice that this industry has not attracted enough attention from the next generation to make a career out of it.
“The beauty industry is a wonderful industry to be in. We sell hopes and dreams in the journey of making people look good, smell nice and look younger,” he said.
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