Company overview Company overview  Health and wellness lifestyle products  Asia- accounts for 88% of OSIM’s revenues  “We Create Demand” – Mr Ron Sim (Founder, Chairman, and CEO)  #1 healthy lifestyle brand in Asia

Expanding global network Expanding global network 31 countries, 369 cities, 1104 outlets, and counting…

Products Products uSqueez Warm uRobic uPapa Hug uDesireuSoffa Petit

SWOT analysis SWOT analysis Strengths Strong branding High-quality products High margins(luxury association) Asian expertise Strong distribution network in Asia Long-term leadership and focus 477 million in revenues worldwide

SWOT analysis SWOT analysis Weaknesses Limited sales and marketing channels Weak international presence/sales Poor Brookstone performance  Current channels: retail stores, online retail  Weak performance outside Asia

SWOT analysis SWOT analysis Opportunities Explosive growth of emerging middle/upper class in Asia (esp. China) Increasing stress levels in business High perceived value of products  Only 1-2% market penetration in China  Graphs on exploding middle/upper class in Asia

SWOT analysis SWOT analysis Strengths Strong branding High-quality products High margins(luxury association) Asian expertise Strong distribution network in Asia Long-term leadership and focus Weaknesses Limited sales and marketing channels Weak international presence/sales Poor Brookstone performance Opportunities Explosive growth of emerging middle/upper class in Asia (esp. China) Increasing stress levels in business Recession over High perceived value of products Threats Cyclicality of business and consumer preferences Overreliance on Asian markets Copycats and competitors Lack of brand value/awareness outside of Asia

SWOT analysis SWOT analysis  Key points:  1) strength in Asia, but limited sales/marketing channels + expected growth in this location = OPPORTUNITY TO INCREASE OUR SALES IN ASIA THROUGH NEW SALES/MARKETING CHANNELS  2) weak performance out of Asia + threat of poor reception of massage products = OPPORTUNITY TO INCREASE OUR SALES OUTSIDE OF ASIA BY STRENGTHENING OUR BRAND ABROAD

The Plan- Hotels The Plan- Hotels  Increase revenue by selecting an Asian luxury hotel chain that caters primarily to businesspeople and placing OSIM products in the hotel rooms/suites for use  Utilize OSIM’s strong Asian brand strength and the guest’s perception of high value and luxury to help further enhance the hotel’s luxuriousness  Show guests that OSIM’s products help to relax and feel good  guests become new OSIM customers

Why Hotels?  Business hotels have a high turnover of the type of guests that are ideal prospective consumers with high-paying, high- stress jobs  Ideal locations in major Asian cities and business centers

Why would they?  Hotels receive both tangible and intangible returns on their investment  The OSIM brand adds to the hotel’s brand (synergy)  Ex. Sealy and Hotel  OSIM products add value and luxury to hotel’s offerings  Ex. Doubletree cookies  Lack of 24-h spas and guest preference for privacy and convenience

Case: Battle of the Beds  Marriot: Serta Perfect Sleeper Mattress  Ritz-Carlton: Sealy  Hyatt Grand Bed: Sealy Posturepedic   Key points: initiatives are costly  BUT Westin: expect premium per room per night because of branded, high-quality mattresses  Marriot: expect 30 premium per room per night  What does this mean? Hotels expect tangible benefits to associating with high-quality brands for room furnishings

Shangri-LaShangri-La  40+ locations in Asia  Business hotel  Luxury

ImplementationImplementation  Put uDesire’s in only the most expensive suites and uPapa Hug’s in as many rooms as possible  Place order forms in the rooms so guests can purchase it immediately or by going to an OSIM store

Case: Herman Miller

AssumptionsAssumptions  Write down assumptions here

Financial Impact  Charts/NPV here

Expansion of plan  If it works, then we expand it to hotels outside of Asia  No distribution network and no demand so different plan  Long-term horizon  Create demand  More modest numbers because of the limitations

Mandarin Oriental

Financial Impact 2  Charts/NPV here

ConclusionConclusion Retail Stores OSIMHotelsHome Web page

Q&AQ&A  Team picture here =)