Osim International

Topics: Financial ratio, Financial ratios, P/E ratio Pages: 11 (3136 words) Published: February 3, 2010

1.Introduction to Osim International4
2.Competitive Strategy4
3.Company value chain4
3.2Operations Management5
4.Non-financial analysis5
4.1Corporate Social Responsibility5
4.2Consumer Sentiments6
4.3Corporate Culture6
4.4Customer Retention and Growth6
5.Global outlook7
6.Industry outlook of healthy lifestyle products7
7.Comparison between Osim and its competitors8
8.Osim Financials8
8.1Company’s Financial Ratios8
8.2Market Prospects9
8.2.1Osim on its own9
8.2.2Osim vs. Selected peers (VGO, Best World, Ogawa, Jacks)9 8.2.3Osim vs. STI10
8.3Projected Performance10
Appendix A12
Appendix B16
Appendix C19
Appendix D24
Appendix E25
Appendix F26

1.Introduction to Osim International
Osim International Ltd. (Osim) is a Singapore listed company; a global leader in the healthy lifestyle products industry. It has been led since its inception by CEO Ron Sim, the company’s value driver, instrumental in bringing Osim to where it is today, greatly influencing its vision, mission and values with his personal touch. The company has expanded to more than 1,100 stores in more than 30 countries worldwide. Within the next 3 to 5 years, they plan to open over 50 outlets and further expand their subsidiaries, GNC and RichLife. 2.Competitive Strategy

In view of the current economic situation, Osim seeks to cautiously and optimistically ‘focus on building profitability, positive EBITDA and operating cash flow’ . Even though they have exceeded sales expectations so far this year, this may be challenging given that they operate in a niche market easily affected by consumer sentiment and other global events. Osim feels a strong balance sheet is integral to meeting this aim, achievable through enhanced operational efficiency and outlets being leaner and more effective in sales. With Brand Osim, they desire an image that is one with (the) healthy lifestyle’ . This demonstrates their aspiration to not only be the market leader, but to also be the brand with the best recall and association. Furthermore, Osim adopts a two-pronged approach of innovation and growth; creating demand through innovation and development to support the anticipated US market recovery and the Chinese markets’ expansion. There is also focus on their most important resource, employees; training and empowering talents with emphasis on corporate culture alignment. 3.Company value chain

Osim’s value chain involves two main processes: Innovation and Operations Management. 3.1Innovation
Research and development (R&D) is a process given much emphasis as Osim strives to release new and relevant products to create demand and to keep a technological edge above its competition, resulting in products such as the iDesire and iMedic amongst others. This has won consumers and its efforts were rewarded in 2008, voted as Asia’s most preferred brand for massage chairs . This is also inculcated in their brand image with their desire to include ‘intelligent innovation’ . 3.2Operations Management

Operations management includes Osim’s manufacturing and retail arms. Upon subjecting raw material to their respective manufacturing processes, Osim creates a product that it believes will add value for consumers and entice them to pay a premium to obtain their desired quality of life. Its retail arm works with an aggressive marketing department to promote their products. Whilst costs are high, the perceived product value added is proportionately high. 4.Non-financial analysis

4.1Corporate Social Responsibility
Osim aims to encourage a positive attitude towards healthy lifestyles. Osim Triathlons in various Asian countries , and the Osim Singapore Masters are some sporting events it has sponsored. While Osim promotes itself as a lifestyle brand, for example, through the promotion of the uSqueez leg massager which appeals to triathletes, they have also donated to the...
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