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  Business Model  
     
 

Beauty China’s Colour Zone and CharmingLady products are sold in dedicated department store counters or specialty shops, owned and operated by its 60+ direct customers. This business model keeps its operations streamlined and cost effective, and allows fast and extensive penetration into the PRC market.

Placing significant emphasis on brand management, Beauty China designs and conceptualises the way its products are packaged, marketed and sold, and ensures that these are adopted consistently by all its distributors and retailers. Not only are shop fronts designed by Beauty China to ensure a consistent look and feel, the shops also carry only Colour Zone products which are retailed at unified prices across Mainland China.

 
 
Beauty China’s aggressive marketing and continuous innovation has resulted in strong brand loyalty amongst its customers. New products are regularly developed by partnering with overseas cosmetics research and development experts to meet different consumer needs in the local Chinese market.

To ensure quality, Beauty China sources and procures raw materials from suppliers in Taiwan, Japan and Korea for the manufacture of its products and packaging. It selects suitable factories to process such materials based on a set of selection criteria, and thorough tests are done to ensure that regulatory standards and internal quality requirements are met. Beauty China’s quality control team members also perform additional quality checks at the factories and at the various retail outlets. Each batch of finished products are despatched to customers with a laboratory test report authorized by the Ministry of Health.

Although brand building still remains at the heart of Beauty China’s core business, the Group has recently commenced production of cosmetics products in Mainland China in October 2007. In March 2007, Beauty China started commercial operation of its own research and development centre. This opens up a new dimension of growth for the Company – evolving Beauty China from a pure brand management company to an integrated cosmetics player.

As one of the very few EU & US GMP-certified cosmetics factories in China which is capable of producing the full range of cosmetics products, Beauty China is well-poised to tap the opportunities in the OEM/ODM cosmetics market.

Besides manufacturing for third party brands, Beauty China is also shifting the production of its own Colour Zone and CharmingLady brands in-house – so as to capture the processing fee margins and ensure the highest quality for its products.