KUALA LUMPUR: Caely Holdings Bhd (CHB) is expecting a shift in consumer purchasing behaviour in the next several years, with online purchases becoming the major purchase trend.
Executive director and chief executive officer Charles Lim Chee Pang said the Malaysian society is evolving into a more prosperous lifestyle, which translates into an increased demand over choice and variety in lingerie supply.
"We are restructuring our retail division to empower them with e-commerce capabilities. Our warehouse is now fully e-commerce-ready.
"Our e-commerce marketing division is also working with marketing partners with more experience in delivering results. We will continue to leverage online marketing efforts to capture new and emerging market share," he told The New Straits Times.
He said the improvements in the material would also see a change in consumer preference for comfort and lifestyle.
According to Charles, the company has budgeted approximately RM200,000 this year for information technology (IT) system improvement.
He stated that the company has no concrete plans for a standalone online e-commerce platform as e-commerce activities are within the marketing budget.
"Higher spending power in the middle-income group will continue to drive the demand in lifestyle changes where occasional wear for various activities is becoming more common.
"The limiting factor, however, is the challenge of increasing cost of living where you will see lower-income groups tend to lengthen the replacement cycle (of their lingerie).
"Adding to that, CHB is also aiming to challenge the top spot in nursing lingerie, currently occupied by an international brand that has been in the market long," he said.
Being one of the largest lingerie manufacturers in Malaysia, CHB has a substantial market share in woman's nursing lingerie in Malaysia under the brand Lunavie, commanding a market share close to 40 per cent.
Other lingerie types are all exported to Europe and North America market.
Charles also pointed out that CHB will continue its initiatives to exert dominance in the nursing market moving forward.
"E-commerce will be our primary growth channel in the coming years.
"We are also exploring and developing new product lines to compete with other international brands for new market shares.
"We plan to be more aggressive in marketing and expanding into other lady care products and pre-teen products," Charles said when asked about the company's marketing plan for 2022.
Outside Malaysia, original equipment manufacture (OEM) channels account for most of CHB's sales in the European and North American markets.
For the Malaysian market, products are sold under two brands, namely, Caely and Lunavie.
"We are engaging a sub-contractor from Indonesia to strengthen our production capacity since early March 2022.
"We are also discussing with our joint venture (JV) partner from Indonesia to set up a new manufacturing plant to cater to the additional market demand," Charles said.
On earnings, CHB's revenue for the third quarter (Q3) financial year ending 31 March 2022 (FY22) stood at RM15.95 million against RM18.26 million in Q3 FY21.
According to a Bursa Malaysia filing, The RM2.31 million decrease in revenue came from the drop in sales of RM1.90 million and RM0.50 million in the manufacturing and property & construction segments, respectively.
The company recorded a profit before tax (PBT) of RM1.61 million in Q3 FY22 compared to RM1.20 million in Q3 FY21.
The higher PBT recorded was mainly from the recovery of RM0.41 million received from the receivables of the property & construction segment impaired in the fourth quarter of the last financial year.
Moving on, Charles said the recent appointment of Azri Azerai and Datuk Seri Mazlan Lazim as independent and non-executive directors bodes well for the company.
"Azri Azerai is a valuable addition to our board. He is young and energetic and can provide different perspectives and views to the management. In addition, he is well regarded in the corporate sector and has a wide network of corporate resources which Caely can tap into for future growth," Charles said.
Mazlan was appointed on 29 March 2022 after serving a long and distinguished career with the Royal Malaysian Police, most recently serving as the deputy inspector-general.
We look forward to working with them and getting their views and perspectives, and input for the next phase of CHB's growth.
Azri Azerai, who has a history in corporate finance and restructuring, said he would support CHB's board of directors in pursuing mergers and acquisitions (M&A) prospects, expanding and improving the company's existing business.
"CHB's position as one of the largest manufacturers and exporters of lingerie in Malaysia certainly caught my attention.
"The company has been in the industry for more than 30 years, which gives the company an unassailable track record and brand image. These 'intangible' assets, experiences and brand image are the values that I see in CHB.
"I hope to also add value to the company by lending my 'Gen Z' views on the business - a market where CHB is not dominant," he said.
Azri Azerai stated that he is constantly looking for ways to give value to all stakeholders, whether by introducing new initiatives or value-added perspectives to the board and team.
"One region that CHB has not tapped into in the Middle East, an area worth exploring," he said.