|Current Status||Break-Even, Profitable|
|Funding Required||RM300,001 to RM600,000|
|Description||Han-Yeon is a skin care brand distributed by JE Commerce Sdn Bhd, a skin care division under cosmetic and wellness group which has been the prominent leader in skin care and cosmetic products for the last decade. Our company has been one of the trend setter and market leader in Asian cosmetic market since our intervention. We have multiple marketing platforms servicing different sectors in retail consumables, salon, e-commerce and so forth. Our consumer base is wide, targeting different age group, buying behaviors and different trends.
Derived from the Korean cosmetic trend, Han-Yeon brings cutting edge technology and innovative products to the world. Our distinctive formulations cater for various skin type and different age group. Han-Yeon mainly uses natural plant extracts as its main ingredients combining modern technology to produce the finest formulation. Han-Yeon is manufactured under stringent manufacturing procedures with accordance to GMP regulations. Our products are SGS laboratory tested to be safe and free from toxicity. Products are also registered with relevant health authority.
|Business Opportunity||We basically solve everyone’s problem since everyone needs skin care. Skin care and cosmetic market is huge in Malaysia and neighbouring countries with consistent double digit growth. The market caters to teenagers as young as 12 years old on acne problems, whitening solution requirement for age group between 20-40 while anti-aging products are favourite among people between 45-65 of age. The cost of sales is about 30%, meaning that we have a gross profit of 70%. Our prices ranging from RM98-RM268.
We intend to explore into salon brand platform by introducing a new brand to the salon market, meaning that we distribute products through beauty salon. There is about 7,000-8,000 beauty salons in Malaysia with estimated market size of RM100mil annually. Our Advisor Mr Jonas Yap has 10 years experience in beauty salon’s trade and is the founder of Aviderm skin care with a network of 250 beauty salons. www.aviderm.com. We have 250 beauty salons ready to be explored.
We are also exploring the slimming and wellness industry since consumers are very health conscious these days. Our Advisor is also the founder of a wellness and slimming brand namely – Wellmark which is being distributed by about 100 salons. We intend to do cross selling with Wellmark.
|Revenue / Business Model||We sell our products to online resellers, they usually market products through FB,Instagram,Wechat etc. We have 3 discount structure for our resellers- 30%,45% and 60% depending on their order intake.
We are exploring into skin care for beauty salon. Salon operators will usually gain a profit of 50-60% from the retail selling price.
Total expected annual revenue is about RM5mil for the first 3 years.
|Management Team||Jane Khor – Chief Executive Officer
Tax auditor in an accounting firm for 5 years.
Passionate in Beauty & Fashion Industry.
Took up entrepreneurship and founded Han-Yeon Skin CareJonas Yap – Advisor
Held managerial position in several Public listed companies such as Angkasa Marketing Bhd and Ann Joo Steel Bhd.
Ventured into skin care industry since 2007.
Founder of several skin care brands such as Aviderm & Wellmark.
|Company Background||JE Commerce Started in May 2016. We have invested on an underpriced property worth RM2mil with a market value of RM2.4mil. Our annual revenue is about RM500,000 with an estimation of RM3mil annual turnover for the coming financial year once all the projects kick start.|
|Funding Milestone||Han-Yeon Women Entrepreneurship Programme is created to promote female entrepreneurship in Malaysia. Currently we have about 200 potential upcoming women entrepreneurship lining up for this programme. Candidates are usually office workers, beauticians and house wives seeking opportunity to start up own business.
1) Create an E-Commerce website with Personalized domain catering to our entrepreneurs to conduct E-Commerce marketing. Most of them are still using conventional ways such as “PM” to conduct sales. (Allocation of RM50,000) We expect to boost sales by more than 300%.
We are also introducing a new salon brand to the market. (Allocation of RM150,000) We will start up with 3 main series of skin care namely acne,whitening and anti-aging. We expect to recruit 150 beauty salons within a year, generating RM2mil of sales.
|% Equity Allocation||25%|
|Risks and Mitigation||1) Possibility of fierce online competition for the next 5 years. Therefore, we need to adapt O2O strategy ( Online 2 Offline / Offline 2 Online ) to avoid the red ocean.
2) Failure to control the increasing size of retailers. This is a tough task faced by most of the companies since online business is mainly confined to online communication. More physical offline meetings and activities should be conducted.
3) Non performing beauty salons is a major issue. Since beauty salon requires territory protection, we have to ensure that they perform on the specific area in order for our product to reach out to the consumers at that particular area. We will have to appoint another salon or replace the non performing salon to keep the consumer’s buying momentum going.
|Exit Strategies||1) Since it is a multiple selling platform company, it is easily sold off and cash out for investors and owners. Potentially buyers are companies from grooming industries and companies running online market place for cosmetic products. Right timing will be when the consumer data base is strong but competition getting fierce and profit margin being slashed.
2) Asset investment and keeping expenses low for a good net profit. This attracts buyers when it is necessarily to cash out.
|Company Name||JE Commerce Sdn Bhd|
|Business Address||NO.8, Jalan Awan Makmur 1, Taman OUG Square, Jalan Kelang Lama 58200 KL.|
|Contact Person||Jonas Yap|