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Osim unveils ambitious expansion plans for TWG Tea
OSIM International, which sells massage products, nutritional supplements and luxury tea, has unveiled aggressive expansion plans for TWG Tea in its drive to make 2015 better than 2014.
In response to queries from investors after the release of its third-quarter financial results, Osim said it plans to open seven TWG Tea outlets by the end of 2014 and 15 to 20 outlets in new locations in 2015.
Osim opened a third TWG Tea Salon & Boutique in Avenue L Department Store in Seoul this month; it opens its inaugural outlet in a luxury mall in Phnom Penh on Friday, and will open one in Abu Dhabi's Yas Island Mall in time for the coming Abu Dhabi Grand Prix.
One or two outlets will open in Shanghai and one in Guangzhou by the end of this year.
The group said all its North Asia and franchise-partner locations slated to open this year have been locked in and are either being built or ready to open.
Next year, the group expects to open an outlet in Beijing in the first half of 2015; by year's end, two more will open in Bangkok.
Osim disclosed that the opening cost of each store is about S$1 million; warehouse and kitchen support run up more than another S$1 million.
To ensure smooth opening operations, product knowledge and customer service in all countries, additional expenses will be incurred for training and development and hiring of qualified staff, the company said.
As for its flagship massage chairs, Osim announced that the next major product launch is expected in the first half of 2015; it is also planning to launch smaller products.
Osim, which is being sued by The Wellness Group Pte Ltd and its chairman Manoj Murjani over its shares in TWG Tea, said the trial in Singapore is expected to take place next year; no date has been fixed yet.
The hearing in the Hong Kong Court of Appeal for the law suit over the logo of TWG Tea took place in October; the judgement will be released later, Osim said.