HAI-O Enterprise Bhd, a wholesaler and retailer of Chinese herbs and medicine, expects to achieve 10 per cent growth in revenue this year despite the global economic slowdown.
Managing director, Tan Kai Hee, said the positive outlook was based on the adoption of an aggressive marketing strategy and support from multi-level marketing (MLM) division.
"We will make use of our existing marketing tools, boost promoting and put more budget for advertising and promotion (A&P) activities," he told a media briefing after the signing of sole distributorship agreement between the company and Yunnan Baiyao Group Co Ltd today.
The company allocated about RM5 million per annum for A&P activities.
For the financial year ended April 30, 2008, Hai-O's revenue jumped 97 per cent year-on-year to RM373.8 million, of which 70 per cent came from MLM division.
For the nine-month period ended January 31, 2009, its revenue rose to RM302.33 million from RM240.27 million in the corresponding period of 2008.
Tan said the company was still positive on its growth although it expected to see a decline in consumers' purchasing power due to economic recession.
"We will adopt more aggressive efforts to achieve it," he said.
He said Hai-O hoped that the strategic alliance with Yunnan Baiyao, a traditional Chinese medicine manufacturer, would boost the company's long-term commitment in helping Malaysians pursue a healthier lifestyle.
Under the agreement, Hai-O would be responsble for the introduction of 19 types of yunnan Baiyao and Yun Feng brands of products.
It will distribute eight products from the Yunnan Baiyao brand, eight products from the Tianqi series under the Yun Feng brand and three products from the Natural Medicine series.
Tan said the products would be introduced to the local market in the second half of this year.
"Besides Hai-O's 60 chain stores and major Chinese medical halls nationwide, the products will also be retailed at hypermarkets and various major pharmacies," he said.
Yunnan Baiyao's general manager of overseas business, Wei Bo, said the company was confident its products would be well-received in Malaysia.
"This is a long-term partnership with Hai-O and we expect to record yearly sales of RM10 million from Malaysian market," he said.
With 18 subsidiaries in China, Yunnan Baiyao's products were well-known as the most effective traditional medicines for stopping bleeding and healing wounds. In 2008, it recorded a revenue of 5.7 billion renminbi.