EZZ has launched EAORON its products in Vietnam. Pic: Getty Images.
Health & Biotech
Special Report: Genomic life science company EZZ Life Science has started selling EAORON branded products in Vietnam, which it says with a burgeoning middle class presents a lucrative opportunity to expand its footprint in Asia.
Along with having more than 50 EZZ-branded products EZZ Life Science (ASX: EZZ) has distribution rights to the EAORON brand of skin care products to pharmacies, supermarkets and specialist retailers in a number of countries, including Australia and New Zealand.
Chairman Glenn Cross told Stockhead 16 EAORON products have been registered in Vietnam including the brand’s best-selling EAORON Hyaluronic Acid Glutathione Essence Face Mask.
“We looked at the opportunity in EAORON and it looked very exciting.”
The company kicked off the launch of its EAORON products on July 6 with the Guardian retail chain in Ho Chi Minh City.
“The retail chain focussed on health, beauty and wellbeing is one of the largest in Vietnam with more than 120 stores country-wide,” Cross said.
Cross says as part of the launch the company is developing marketing strategies that resonate with local cultural values and beauty standards.
EZZ is investing in robust digital marketing campaigns, influencer partnerships, and a strong presence on e-commerce platforms to build brand awareness and trust.
EZZ is establishing strategic partnerships with leading supermarkets, hypermarkets, and specialty high-end stores to ensure widespread availability and visibility.
The company is also launching educational campaigns to inform consumers about the benefits of EAORON products, focusing on skincare routines and natural ingredients.
“We’ll adopt a similar marketing approach to what we have in our other key markets,” Cross says.
Vietnam presents a lucrative opportunity for EAORON’s natural and innovative product lines.
“There are 100 million people in Vietnam and there’s a growing middle class with disposable income,” Cross said.
“Expert Market Research reported that the skincare segment was projected to reach US$1.2bn in 2023 and is expected to continue expanding significantly.
“That is a substantial opportunity and we’re at the top end of the market and believe there’s a growing willingness in Vietnam for consumers to pay for premium skincare products.”
Australia and Vietnam enjoy a robust trade relationship that has been growing steadily, supported by frameworks such as the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA).
In recent years, this partnership has seen significant mutual benefits, with trade encompassing a diverse range of products including raw materials, agricultural goods, and manufactured products.
According to Australian government figures Australia’s total two-way trade with Vietnam increased 75% from $14.7bn in 2020 to $25.7bn in FY22/23.
The Government says strong Vietnam’s economic growth, a shift towards a more market-based economy, and expanding middle-class have increased demand for imported goods.
It has been a good year for EZZ, which announced in June it achieved a key milestone with the US Food and Drug Administration approving nine of its products in the food category.
“We’ve been looking at the US market for a couple of years and earlier this year set up a wholly-owned US subsidiary, EZZ Life Science Holdings (USA) Inc, which will be used as the trading entity,” Cross says.
The company also has a strong presence in China and recently inked a five-year deal with Hong Kong-based Pinehills for the supply of EZZ-branded products, with total value of at least $15 million in the first 12-months.
“Not only are Pinehills very active in Vietnam, China and Southeast Asia but they are also very active in northern Asia so that will be an opportunity for us to go into markets like Korea and Japan,” Cross says.
“We’ve also gone into Kuwait and are very cautious with our expansion and look at these markets for a while before we make a move.”
Cross says all EZZ products are manufactured in Australia under good manufacturing practice (GMP) and where appropriate registered with the Therapeutics Goods Administration in Australia.
“Combined with FDA approval it just means consumers can be comfortable with the efficacy and safety of our products,” he says.
EZZ is also well capitalised for growth and recorded a strong Q3 FY24. The company recorded a 15% increase in cash balance over the previous quarter to $14.5m at March 31 2024, with no debt.
This article was developed in collaboration with EZZ Life Science, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Health & Biotech
Health & Biotech
Health & Biotech
