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Despite 2020’s Awful Start, This M’sian Team Has A Game Plan To Hit A 30% Revenue Growth

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Creator’s Blurb: I can’t be the one one who feels some suspicion in direction of a variety of the pure skincare merchandise we see in pharmacies. Name me a cynic, however I’ve heard about unethical issues taking place within the business, even once they’re labelled ‘clear’, ‘inexperienced’ or ‘pure’ (although that’s normally for abroad company manufacturers).

Legislation Hong Mei determined to take issues into her personal arms when she launched The Olive Tree in 2015 to address her children’s eczema.

Since she’s personally
invested in her merchandise because of her youngsters’s dependency on the effectiveness
of them, she’s ensured that they’re truly freed from dangerous chemical compounds and never
simply saying so on the labels.

Great products that you can use in your life.


5 years later, she’s
nonetheless extremely hands-on with all the things that The Olive Tree places out to
guarantee high quality management.

Once we final interviewed
Hong Mei in 2017, they’d offered over 20,000 merchandise within the span of two years.

They’d appeared to
be steadily rising, so we not too long ago interviewed Hong Mei once more to meet up with
how the enterprise is doing.

Concentrating on The Proper
Crowd

Whereas Hong Mei
beforehand expressed the need for The Olive Tree to increase exterior of
Malaysia, nearly all of their prospects nonetheless hail from Malaysia.

She’s famous that they
haven’t been rising quite a bit abroad, however places it all the way down to the truth that they’re
very targeted on serving the native market.

“Our prospects are
primarily 30 to 45, and 80% ladies. Most of them have households and younger youngsters,
and so they’re educated, educated, they know what actual pure merchandise
encompass, in contrast to those who fake to be pure however aren’t,” Hong Mei
shared.

Some buyer favourites
embody their handmade olive cleaning soap and the rosemary & mint shampoo, and she or he shared
that they depend on wants primarily based buyer suggestions to provide you with new merchandise.

Take their newest vary for instance. The Balancing Geranium Collection was primarily based on buyer suggestions about being unable to discover a shampoo for shiny scalps with dry and frizzy hair.

Certainly one of The Olive Tree’s merchandise on show in-store / Picture Credit score: The Olive Tree

General, the demand for his or her merchandise has not considerably elevated in comparison with earlier years, although they’ve been having fun with a gentle demand from their present prospects.

Prior to now 5 years, they’ve offered round 95,000 models, and so they promote about 2,300 models per thirty days.

Hong Mei declined to share precise income digits, however mentioned that this 12 months alone, they’re engaged on attaining a 30% progress when it comes to income.

How they’ll be doing that is by specializing in rising their new e-commerce platform on Shopee, launching a subscription mannequin for his or her merchandise, and increasing into the company phase by providing company present choices for occasions and loyalty programmes.

Retail Is The Face Of A Model

The Olive Tree maintains
three predominant retail shops in Klang Valley, and Hong Mei holds on steadfastly to the
perception that bodily retail is vital.

You’ve most likely heard
of the retail apocalypse that’s apparently taking place everywhere in the world with
the rise of e-commerce, however this doesn’t appear to be a problem for The Olive Tree.

To Hong Mei, sustaining
their retail shops is vital as a result of they act as the general picture of the
model and supply prospects with extra confidence of their merchandise.

Refillable merchandise at their package deal free retailer in Sunway Nexis / Picture Credit score: The Olive Tree

“And in addition we observed
that for our goal market, an enormous chunk of it, most likely 70% of these ladies
with households aren’t comfy with buying on-line,” she shared.

“They nonetheless need to
contact and really feel the merchandise and speak to the salespeople to know how the
merchandise work, and so they wish to decide up the product from the shop
as a substitute of getting it despatched to them.”

On a regular foundation, there’s
a transparent division between their prospects who solely store on their on-line
retailer versus in individual at their retail shops.

Consider it as a Venn
diagram with little or no overlapping, since they’re not attempting to cannibalise
themselves.

It’s labored out so
far, with The Olive Tree having a definite presence on numerous platforms to
service their totally different teams of consumers.

Cash Doesn’t Develop
On Bushes

Their present key
focus is strengthening their on-line presence, and so they haven’t uncared for their
on-line retailer one bit.

To make sure that they maintain
driving site visitors to their enterprise, Hong Mei makes certain their web optimization is powerful,
that they get good opinions, sustain their publication, and please present prospects
who will unfold the phrase.

She hopes to have the ability
to develop the enterprise exponentially normally, and one a part of that features
increasing their bodily shops.

Hong Mei in one in every of The Olive Tree’s shops / Picture Credit score: The Olive Tree

“We wish to get franchisees to really function in key cities equivalent to Penang and Johor, now we have began to get contacts and now we have additionally visited malls,” Hong Mei shared once we requested her what was within the pipeline for the subsequent 2 years.

Nonetheless, funding is
now a problem. Again once they first began, Hong Mei and her core workforce (of three
then, now there’s 5 of them) began the enterprise with RM200,000 from their very own
financial savings.

As that’s merely not
sustainable for them contemplating their plans of progress, she’s involved about
discovering funding in time.

For now, she’s nonetheless
capable of get loans from SME Financial institution, which she believes she will be able to proceed getting
for some time, however in some unspecified time in the future, they’ll want buyers with a purpose to develop even
greater.

Backside Line: Regardless of my suspicions of pure skincare manufacturers normally, I’d be extra more likely to belief Hong Mei’s merchandise because of the truth that she’s so hands-on and sincere with the merchandise and course of. As somebody who suffers from eczema flare-ups myself, if The Olive Tree has labored properly for her youngsters, that’s all the boldness I have to be transformed to a shopper.

  • You possibly can examine different Malaysian startups here.

Featured Picture Credit score: The Olive Tree

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