HAI-O Enterprise Bhd(Hai-O) is taking an important step in its fervent aim to expand its markets in the global arena. The leading traditional Chinese medicine and multi-level marketing(MLM) group is in the midst of establishing its first retail outlet in Kunming, China by the end of the year.
Plans are afoot to tie up with a local Chinese partner in the form of a quasi-government agency, who will provide the necessary advice and assistance in its foray in that country, says Hai-O group managing director Tan Kai Hee.
“Details on the new outlet is expected to be finalized next month and scheduled for opening by year-end. This outlet would be the pilot project for the group to assess the Chinese market,”Tan told The Malaysian Reserve in an interview.
According to Tan, the model outlet in Kunming would be undertaken jointly with MARA under an earlier partnership agreement between the two parties, with the purpose of helping Malaysian products penetrate the Chinese market.
The retail outlet will display selected products by Hai-O including ginseng coffee, vitamin E softgel, bird’s nest, tongkat ali-based products and those manufactured by Bumiputera businesses under the MARA entrepreneur development programme.
At home, Hai-O has grown by leaps and bounds over the years to become a household name offering an array of products namely Chinese medicines, medicated wines and health care products.
The group currently operates 56 outlet including 15 franchise shops national wide and has over 100 wholesalers, 3000 retails and 60,000 under its MLM business.
Its financial performance has also grown from strength to strength. For the nine months ended Jan 31, 2007, the group posted a net profit of RM13.4 million or 20.51sen a share on turnover of RM132.6 million.
In another development, Tan said the group is also spreading its wings to Indonesia. It is currently ironing out details to set up an office, a flagship retail and wholesale centre and a training centre in Jakarta. Hai-O is committed to invest a “substantial amount”based on its successful business model.
Hai-O is also poised to add another milestone in its corporate life with the impending transfer of its listing from the second board to the main board. According to Tan, the company is expected to submit its application for the listing transfer next month.
Tan, who is the major shareholder in Hai-O (Tan and family owns a 22.9% stake), also aims to list one of the group’s profitable subsidiaries, either in Malaysia, Singapore or Hong Kong.