Brand erosion
The OSIM brand is the success and key value driver in its business. OSIM will have to strengthen its branding to prevent any dilution and focus on strategic positioning of its core products. Management’s efforts to raise the OSIM brand profile, for instance, via sponsorship of high-profile corporate events and celebrity endorsements to raise awareness and brand presence have been successfully so far.
The OSIM brand remains the key value driver of its business, and OSIM will have to carefully manage this to prevent any dilution. For now, OSIM has continued to focus on positioning its core products at the “luxury” end of its market segment, where the entry barriers are more stringent. Management has also continued to seek new channels to raise the OSIM brand profile, for instance, via sponsorship of high-profile corporate events, such as the OSIM International Triathlon since 2001, the OSIM Singapore Golf Masters
(from 2005-08), and the BMF World Superseries (2011-13), which should help boost the brand’s presence globally. OSIM’s strategy is to participate in or sponsor high-profile corporate events such as triathlons, a multi-disciplinary sport that encourages stamina, endurance and strength, and promotes a healthy lifestyle, qualities that are strongly aligned with OSIM’s own corporate culture. A dedicated marketing budget (at about 6-7% of sales), coupled with celebrity endorsements and tie-ups for key product launches (e.g.
Andy Lau, the Hong Kong actor and singer, for the uDivine massage chair and its derivatives), also reinforce our underlying confidence in the success of these efforts.