chlitina holding limited · 2014-11-14 · chlitina holding limited 3 a. about chlitina number of...

Chlitina Holding Limited

1


Group Introduction


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A.About CHLITINA

Company Information➲ Company Name: Chlitina Holding Limited

➲ Chairperson: Chen Pei-hua

➲ Paid-in capital: NT$757 million

➲ Total number of employees: 648

➲ Market segments:

Manufacture Selling ChannelsR&D and

Production

Sales Regions

2013 Annual Sales Results**

Unit: Thousand RMBUnit: Thousand NT

Dollars%

Mainland

China 539,965 2,610,121 96.73

Other* 18,240 88,158 3.27

Total 558,205 2,698,279 100.00

*Note: Sales results in Hong Kong and Taiwan.

**Note: The results are unaudited


3

A.About CHLITINA

Number of

CHLITINA stores

Year

1997Chlitina Group set up

operations in Shanghai,

officially expanding into the

Mainland China market

1999Opened the first flagship

store in Shanghai

2003Obtained ISO 9001:2000

certification and

the GMP certification for

cosmetics manufacturers

2012Honored at the 17th China Beauty Expo as a "Leading Brand"

and "The Most Influential Beauty Chain Salon"

Listed among China's Top 50 High-Growth Franchises (Franchise 50)

by ENTREPRENEUR magazine

Named one of "Top 10 Most Investment Value Brand in Asia" at ASIA

BRAND ANNUAL MEETING 2012

2008Formed an R&D alliance with a French partner;

CHLITINA saw the 15,000th person complete its elite skincare consultant

training program

2013Named "Most Valuable Beauty Institute" at China Beauty Expo

"Most Influential Entrepreneurial Brand" award

Gold Medal, Joining China Franchise & China Venture Exhibition

Top 10 Business Models, Business Model Summit for Beauty

Industry

Listed among China's Top 50 High-Growth Franchises (Franchise

50) by ENTREPRENEUR magazine

On November 27th, Chlitina was listed on the stock exchange of

Taiwan

1989Launched the CHLITINA brand in

Taiwan

2,000

3,000

2011Listed among China Famous

Trademarks

Company Milestones

1989 1997 1999 2003 2005 2008 2011 2012 2013


4

0

200

400

600

800

1000

1200

2011 2012(F) 2013(F) 2014(F) 2015(F) 2016(F)

銷售額（人民幣億元）

Mainland China Market for

Skincare Products, 2011-2016

Source: Euromonitor（May 2012）

Body care

Face care

Hand care

Category/Year 2011 2012(F) 2013(F) 2014(F) 2015(F) 2016(F)

Body care 27.32 29.31 31.41 33.61 35.93 38.37

Face care 695.93 769.65 849.97 937.1 1,013.76 1,134.09

Hand care 8.32 9.33 10.42 11.61 12.88 14.25

B. Market Environment

in China

Value of Sale

(Hundred

Thousand

RMB)


5

0

50

100

150

200

250

300

350

400

450

500

2011 2012(F) 2013(F) 2014(F) 2015(F) 2016(F)

2011-2016年中國大陸臉部護理類產品市場

銷售

額（

人民

幣億

元）

Source: Euromonitor（May 2012）

Facial masks

Lip care

Facial moisturizers

Toners

Anti-aging

Acne treatments

Facial cleansers

Category/Year 2011 2012(F) 2013(F) 2014(F) 2015(F) 2016(F) %

Acne treatments 5.37 5.74 6.12 6.51 6.91 7.32 0.65%Facial masks 58.62 66.95 76.26 86.63 98.14 110.89 9.78%Facial cleansers 80.64 84.33 88.01 91.71 95.4 99.06 8.73%Facial moisturizers 301.96 329.99 359.88 391.63 425.62 461.65 40.71%Lip care 4.74 5.11 5.5 5.9 6.31 6.75 0.60%

Anti-aging products 199.62 226.01 255.35 287.71 323.26 362.19 31.94%

Toners 44.98 51.52 58.85 67.01 76.12 86.23 7.60%

B. Market Environment

in China

2011-2016 Mainland China Market for Face Care Products

Value of Sale

(Hundred

Thousand

RMB)


6

Category Product Type Function

At-home skincare

Liquid makeup

removers, cleansing

creams,

toners, lotions,

creams

Cleansers

Hydrators

Treatments

Moisturizers

Protectors

Salon Products

Bio-regenerating collection

Eye treatment collection

Anti-wrinkle collection

Fairness (whitening) collection

Hydration collection

NATUREX collection

Skin treatment collection

BodyEssential oil, lotion

Slimming collection

Others Essential oil, organic juices etc.

Product and Services C.Products &Services


Flagship Products

“More than 140 Professional Skincare Products!”

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C.Products &Services


8

Franchise BenefitsD.Franchisees

Beautician

Uniforms

Training

Quota

Salon

Equipment

Store

Equipment

Shop sign

Creation

Products

(Initial set)

165,000 RMBFranchise Fees (One Time Payment,

includes 30,000 RMB security deposit)

Benefits include:


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Store Requirements1、Floor plan must be at least 200 square meters

2、The top of the store front must have at least 3.5 m of

space for the store sign

3、Stores must be renovated according to our company’s

standard style and brand image

D.Franchisees


10

Heilongjiang

Province

32 locations

Jilin Province

29 locations

Liaoning

Province

79 locationsBeijing City

202 locations

Inner Mongolia

Autonomous

Region

76 locationsShanxi

Province

75 locations

Anhui Province

105 locations

Hebei Province

70 locations

Henan Province

25 locations

Hubei Province

171 locations

Jiangsu

Province

343 locations

Jiangxi

Province

89 locations

Shandong

Province

90 locations

Hunan Province

150 locations

Tianjin City

76 locations

Hainan Province

5 locations

Guangdong

Province

301 locations

Shanghai City

343 locations

Zhejiang

Province

525 locations

Gansu Province

4 locations

Ningxia Hui

Autonomous Region

6 locations

Shaanxi

Province

32 locations

Chongqing City

54 locations

Sichuan Province

79 locations

Tibet

Autonomous

Region

7 locations

Guangxi Zhuang

Autonomous Region

25 locations

Yunnan Province

17 locations

Guizhou Province

40 locations

Xinjiang Uyghur

Autonomous Region

13 locations

Fujian Province

58 locations

Taiwan

126locations

More than 3,000 Stores Belong to CHLITINA’s

Franchise Network

Northeast China

North China

East China

Southeast China

Northwest China

Southwest China

Taiwan

D.Franchisees


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Presence of CHLITINA Franchisees in Urban Areas

"Rendering superior service in an ever-expanding

franchise network"

Major

geographic

regions

2010 2011 2012 2013

Northeast

China31 32 34 30

Southeast

China76 71 72 76

North China 24 24 24 25

East China 124 128 139 150

Northwest

China9 9 13 14

Southwest

China44 46 47 39

Total 308 310 329 334

At least 700 cities in China have enough target customers to support

Chlitina stores—suggesting there is much room for further growth.

D.Franchisees


12

The Spread and Income of Franchisees

城市分類# of CHLITINA

Stores

Percent

Revenue例

First Tier Cities(5) 823(27%) 30%Beijing/Shanghai/Guangzhou/Shenzhen/

TIanjin

Second Tier

Cities(14)648(21%) 20%

Nanjing/Wuhan/Shenyang/Chengdu/

Jinan/Harbin…

Third Tier Cities(21) 448(15%) 14% -

Fourth Tier Cities 578(19%) 17% -

Fifth Tier Cities 589(19%) 19% -

Total 3086(100%) 100%

1. Chinese cities are divided into different tiers based on their political

significance, economic power and size.

2. The figures above for 2013 are unaudited.

Number of Stores

from 1st to 5th Tier CitiesOperating Revenue

From 1st to 5th Tier Cities

D.Franchisees


Bohai

Economic

Rim

Yangtze

River Delta

Economic

Zone

Pearl River Delta

Economic Zone

The Expansion of National High Speed Rail

Grid (4 North-South and 4 East-West Lines)

The Formation of 8 Hour Economic

Circle

1. The rail provides high speed connection

between cities, enabling 2 hour economic

circles within and 8 hour economic circles

between provinces, covering the key

regions in China.

2. The 2 hour economic circles speed up the

growth of markets in 3rd and 4th tier cities.

3. The rail enhances the economic radiation

of traditional economic zones.


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Hangzhou

Nanjing

Dalian Beijing

Chengdu

Guangzhou

Chongqing

Hubei

Hunan

Shanghai

Shandong

Anhui

Inner MongoliaTianjin

Hebei

Ningbo

Shenzhen

Kaohsiung

Taichung

Taipei

25 Regional Offices and Training Centers

Comprehensively Covers Chinese Market •Strengthening of regional storefront management and monitoring

•Opening of new franchise stores in governing regions

•Basic/advanced product-related knowledge and ordinary skincare skills

•Knowledge about new products and skincare

Wenzhou

Jiangxi

Shaanxi

Fukien

Suzhou


1515

Senior Consultants

Beauty Ambassadors

Basic TrainingSkincare Techniques

(basic)Corporate Culture

Customer Service

Etiquette

Occupational and Professional

Image Building Corporate Culture Skin Physiology

Skincare Techniques (advanced)Skincare Consultancy Product-related Knowledge

Business AdministrationCorporate Culture Consumer Psychology

MarketingTreatment Planning Instructor Training Programs

Beauticians

Skincare Consultants

Store Managers & Aesthetic Consultants

A Three-Stage Training Mechanism for Elite

Aestheticians

"Nurturing well-rounded professionals with

comprehensive, career-long training solutions"

D.Franchisees


Thousand NT dollars

Past Operating

Revenue

E.Performance of

Enterprise

16


17

Thousand NT dollars

Quarterly Operating Revenue

*2013 figures are unaudited

E.Performance of

Enterprise


Flo

w o

f Funds

F.Chlitina Holding Limited

Efficient Use of Capital

100

%

100

%Chlitina International

Limited(BVI)

Chlitina (Shanghai)

Trade Co. Ltd (PRC)

Weishuo (Shanghai)

Daily Product Co.

Ltd (PRC)

Chlitina Intelligence Limited

(BVI)

Chlitina Group Limited (BVI)


(Cayman)

Hong Kong Chlitina International

LimitedChlitina Marketing Limited

(BVI)

Centre de Recherche et de

Developpement de CHLITINA

FRANCE EURL (France)

Chlitina Marketing Limited

Taiwan Branch

100% 100%

100%

100%100% 100%

100%100%100%


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Thanks For Your Attention

Q&A


20

Market Environment

in China

Brand Name Business Model Target MarketsMain

Products

Number

of

Stores

Listed

among

China

Famous

Trade-

marks?

(Y/N)

CHLITINA

A franchise

system

(Franchisees

must pay the

deposit and

franchise fee)

Mainland China,

Taiwan, Hong

Kong and

Southeast Asia

Skincare

products

Approx.

3,000 Yes

Natural

Beauty

A franchise

system

(Franchisees

must pay the

deposit and

franchise fee)

Mainland China,

Taiwan, Hong

Kong, Macau

and Southeast

Asia

Skincare

products

Approx.

1,500Yes

AESTHETIC

A franchise

system

(A "no-franchise-

fee" policy during

promotional

period)

Mainland China Skincare

products

Approx.

2,000 No

SIYANLI

A combination of

regular chains

and franchisees

(Franchisees

must pay a

franchise fee)

Mainland China Skin and body

care products

Approx.

130 No

BIO

JOURDEN

ESS

Mostly comprising

regular chain

stores

Mainland China,

Taiwan,

Malaysia and

Japan

Skincare and

makeup

products

Approx.

800 No

Mainland China's Market for Skincare Products


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Non-franchise beauty brands

291,000 stores (97%)

Franchise beauty brands

Approx. 9,000 stores (3%)

Franchise beauty brands (Mainland China)

Non-franchise beauty salons (Mainland China)

Only 10% of new stores survive!

Franchising leads to successful brand expansion!

Survival among new stores increases

to 90%

Lack of branding

leads to isolation

Industry regulatory

measures

are inefficient

Some services

providers

are unqualified

Competition in the

market

is not properly

regulated

Source:

Annual Survey of Aesthetic, Recreation and Wellness Chains, China Chain Store & Franchise Association

2011-2015 Prospects of Operating a Beauty Chain in China or Making Related Investments, Beijing-based Zhi-Yan Scientific Information

Consulting Co. (www.abaogao.com)

Beauty & Recreation Service Providers

Worldwide Rely on the "Chain/Franchising"

Business Model for Survival"Economies of scale is key to success for chains and franchises."

Market Environment

in China


22

A relatively large marketA substantive brand

conceptA comprehensive

training system

Professional R&D

and production mechanisms

Over 3,000 retail chains

Hundreds of stores join

the CHLITINA Group

each year

11 distribution centers

22 regional training

centers

Over 15,000

beauticians

China Famous

Trademark

Enlightenment

Educational Program

CSR efforts

Customized

products/treatments

GMP-certified

manufacturing facilities

A technological R&D

alliance with a French

company

Core Competence

TOTAL SOLUTION


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➲In a rare example, CHLITINA and Ke-Li-Ti-Na (the Chinese name of

CHLITINA) were simultaneously designated as China's Famous

Trademarks.

➲ "China Famous Trademark" is the highest-level trademark awarded by the

State Administration for Industry and Commerce of the People's

Republic of China.

➲ Only 14 Taiwan-based businesses have been awarded the Famous

Trademark designation.

➲ China's Famous Trademarks reflect excellence in terms of brand

awareness, reputation and customer services, as well as favorable

recognition from both authorities and consumers.

Core Competence China Famous Trademark

CHLITINA is an iconic business that achieved the highest honor for a brand


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High-Quality Storefront and Interior DesignCore Competence

"A client-oriented, sophisticated service environment"


25

Training FacilitiesCore Competence

"A European-style beauty academy where all professional

training courses begin in the HEART"


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Core Competence CHLITINA's Manufacturing Facilities

chlitina holding limited · 2014-11-14 · chlitina holding limited 3 a. about chlitina number of...

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