By AFIQ AZIZ / Pic By MUHD AMIN NAHARUL
Hai-O Enterprise Bhd, which has carved a niche in the traditional healthcare market, plans to expand further into the growing Bumiputera fashion and lifestyle segment.
Its CFO Hew Von Kin said the strategy is expected to push the company’s business to record a double-digit growth in 2018.
“Apart from the existing products, the new fashion and lifestyle market will be one of the main contributors to the growth.
“We are not only expecting sales from the existing members, but also from new membership gained due to the attractive new products,” he said after the group’s AGM in Kuala Lumpur yesterday.
He said that Hai-O plans to increase its membership from 150,000 to 200,000.
Hew said among the products that are expected to be introduced into the new market include Muslim’s hijab, shoes and clothes.
For the quarter ended July 31, 2017, the group sales stood at RM124.5 million, which is also reported as the best quarterly performance to date.
The improvement was attributed to Hai-O’s multilevel marketing segment that contributed up to RM102.4 million to the overall sales, 81.4% increase compared to the figure reported in the previous year’s corresponding period.
Hew said the sales figure was also beyond the company’s expectations as the management was bracing for a lower figure.
“Traditionally, the first quarter is always the toughest. This year, we celebrate our 25th anniversary by continuing with our existing product promotions. The response has been very good and hopefully it would continue,” Hew said.
He added that the group has allocated RM10 million for its capital expenditure for the financial year 2018 to expand its distribution channels for the East Malaysia market.