Perhaps OSIM has priced their products to be expensive and of high margins, hence needing only low volume
Something similar to the private condo market SC global vs Capitaland
Still the same after so many years .... I have been saying that for years already... way before GFC.
One can never use Peter Lynch's method to evaluate Osim business.
When in doubt, avoid... don't try too hard.
GG
(15-06-2013, 09:59 PM)felixleong Wrote: [ -> ]may I ask a question, do u guys notice that OSIM retail stores often have little or no customers.
Do they usually sell their goods online or something... I just somehow can't understand their strong growth, please enlighten me thanks ^^
(16-06-2013, 12:12 PM)greengiraffe Wrote: [ -> ]Still the same after so many years .... I have been saying that for years already... way before GFC.
One can never use Peter Lynch's method to evaluate Osim business.
When in doubt, avoid... don't try too hard.
GG
Hi GG,
U mean we shd not use PEG to look at OSIM?
I am fairly new to the forum, not sure wat was discussed previously..can elaborate?
Hi,
I would like to venture a guess as to the profitability of OSIM. i think it might be capitalizing on the guilty consciousness of PMET (Professionals, Managers, Executives and Technicians). Just like working mums who feel guilty about not spending enough time with their children and lavishing them with presents, so do the working professionals who are willing to spend a lot to compensate for the lack of time spent with parents. They also have time constraints due to work and are in and out of the retail outlets very fast?
Hi financiallyfree, tt was exactly the sentiments my friend shared wif me when he bought a tian wang yi last yr for his mum..hahhaa..but he swear by its effectiveness to relieve his own aches..
(15-06-2013, 09:59 PM)felixleong Wrote: [ -> ]may I ask a question, do u guys notice that OSIM retail stores often have little or no customers.
Do they usually sell their goods online or something... I just somehow can't understand their strong growth, please enlighten me thanks ^^
I have the same question too. LOL.....
Anyway, they still pay rental to the REITs.....
(16-06-2013, 05:43 PM)Dividend Warrior Wrote: [ -> ] (15-06-2013, 09:59 PM)felixleong Wrote: [ -> ]may I ask a question, do u guys notice that OSIM retail stores often have little or no customers.
Do they usually sell their goods online or something... I just somehow can't understand their strong growth, please enlighten me thanks ^^
I have the same question too. LOL.....
Anyway, they still pay rental to the REITs.....
Every OSIM shop I visited has been empty like nobody's business. Initially I thought they were pyramid scheme like those Amway / Cosway type of business.
Nowadays I seriously think OSIM is quite a large scale money laundering outfit. Valuebuddies so long you guys know is enough.
I tend to only believe until I see
when i was researching retail stocks like hr glass, i would go taka to see their store, really got business
when researching epic center or sheng siong, i also go their store and take a look
when it came to Osim i was really shocked, their earnings are so explosive but i soon pa (swear) everytime i visit their stores hor.. really got no customer one
but please dun take my word for it, i believe as value investors we should often or always go down to the ground to see the business ourselfs, since buying stocks is like buying a business.
cheers ^^
Osim is like Hour Glass. They are selling luxury products so a better gauge would be to frequently visit the outlets if possible. A one-time visit will not suffice because you might just be there during the time when there are no customers. Yes, believing what you see is important but have we seen enough in order to draw a meaningful conclusion is more important.
The Hour Glass outlet at my office area is always empty during lunch hour but it doesn't mean they have no sales. Sometimes, even if the place is crowded, it might not mean business is good. This is especially true for Cafe outlets such as Starbucks/Coffee Bean/etc where you get numerous students hoarding seat with a single purchase - the turnover is terrible.
IMO, best way is to go in as a customer and ask the salesman about the business. (e.g. what kind of products customers have been purchasing lately) Do it a few times round and you probably know how's sales like.
Or another way to gauge is during house visits, see how frequent your friends or neighbours have OSIM products in their homes. It would be nice to also ask them how they feel of the product.