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Synagie inks deal with Henkel Singapore to distribute beauty care brands in SE Asia
CATALIST-LISTED e-commerce player Synagie Corporation on Thursday said it has signed a Memorandum of Understanding (MOU) with Henkel Singapore to manage the distribution and sales of Henkel's beauty care brands in Singapore and within the region.
Henkel Singapore is a subsidiary of Frankfurt-listed Henkel AG & Co, which has three business segments, namely: adhesive technologies, beauty care, as well as laundry and home care.
The agreement will see Synagie manage and expand the online and offline distribution of Henkel's beauty care brands including Schwarzkopf, Dial and Theramed in Singapore, Malaysia, Vietnam, Philippines and Indonesia, the company said.
According to Synagie, Henkel recorded revenue of 19.9 billion euros (S$30.8 billion) in 2018, with 20 per cent of its revenue coming from its beauty care segment.
With this partnership, Synagie will start rendering its 'new retail' distribution services immediately, and both parties shall enter into a distribution agreement within 60 days from the date of signing of the MOU, Synagie added.
The company defines 'new retail' as the combination and integration of both online and offline commerce to provide a seamless shopping experience for consumers.
As part of its 'new retail' services, Synagie will promote the distribution and sales of Henkel's brand products on online channels such as e-marketplaces, and offline channels such as brick and mortar beauty chain stores or supermarkets in the region, it said.
Olive Tai, co-founder & executive director of Synagie said: "We are proud to be able to expand our services into the region for Henkel, our valued brand partner whom we have started working with in Singapore since 2018. We believe that 'new retail' is the future of retail in South-east Asia, where brands will be able to provide a seamless experience regardless of whether the consumer is shopping online or offline.
"When implemented, consumers will no longer need to think in terms of separate shopping channels and will be able to use both at the same time for product research, comparison and product purchase including home delivery for their orders."
Synagie shares closed at 15 Singapore cents on Wednesday, up 0.7 per cent, or 0.1 cent.