Asian Growth: Ecoya expands into Japan with new distributor

March 22, 2012

Asian Growth Plans: Ecoya expands into Japan with new distributor

Ecoya Ltd (NZX:ECO) this week signed an exclusive agreement with Japanese Company, Kinu Corporation.

Wataru Kajimura, President of Kinu Corporation, states, "We are delighted to sign this exclusive contract with Ecoya as it gives us real strength in the growing home fragrance market. Together with the Australasian connection, this makes us very positive about the future for the range in Japan".

This comes following a successful trial with leading Tokyo retailer of Luxury Home goods 'Bus Stop'.

Mr. Kaimura adds, "We are thrilled to bring Ecoya's products to Japan and we are confident that they will soon be in the living rooms, bedrooms and bathrooms of some of the most interesting Japanese people."

Geoff Ross, Chairman and CEO of Ecoya, states: ''For the Ecoya group, Natural Skincare brand Trilogy and Ecoya Fragrance and Body Care together, have seen 135 per cent growth in sales, year on year in Asia. The group's business in Asia is now is into the millions of dollars, for revenue contribution”.

Trilogy products are already in Japan – the biggest single Asian Market for the group’s skincare range, with well-known Tokyo Store, Isetan, being the single biggest account and Cosmekitchen the largest chain.

Ross adds: “For us Asia continues to be a growth market. And beyond Australia, Asia will be where we see very strong growth coming from. Primarily within our biggest market Japan, but also in China and Korea.

“The Ecoya group currently has sales to countries outside of New Zealand that equate to 72 per cent of its total sales, and we expect this is likely to grow,” says Ross.

“It also used to be that brands travelled 'west to east', meaning they would start in the western retailers and eastern countries would then pick up. In our case we have seen several examples of the reverse. For instance, Ecoya started in Harvey Nichols Hong Kong and will soon be in Harvey Nichols London.

“Asian consumers’ interest in skin and body care brands from this part of the world continues to grow,” says Ross. “And I think this is being reflected in our growth. I also think Asian businesses have recognized this as was evidenced by the purchase of Australian Skincare company Jurlique, for AUD$335 million at a multiple of 3.5 revenue, by Japanese private equity company Polar Orbis Holdings.”

Ross says “the continued addition of new distributors and new retailers keeps building a bigger and bigger asset for us”.

ENDS

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