Simson Wellness Sdn. Bhd. with its members who has more than 30 years’ experience in the optical industry, sets its vision to be the leading Malaysian Optical Distribution Digital Platform Worldwide. With first hand understanding of the obstacles faced by the industry, Simson Wellness Sdn. Bhd. has created a platform to bring the manufacturers / distributors closer to the end market and retailers. This innovative platform, will reduce the obstacles and promotes growth of the eyewear industry which is a dynamic and competitive industry.
Simson’s online platform promotes simplified methodology of “Manufacturers to End-Users – One Portal to Major Distributors”.
|205% of target||0 days left|
|Min Target||RM 500,000|
|Max Target||RM 2,000,000|
Simson Wellness Sdn Bhd. is a digital platform that acts as middleware for the distribution of optical products. In the pipeline, Simson Wellness Sdn. Bhd. is planning to consolidate the business of Bolton Optical Group, Simson Trading Sdn. Bhd. and Simson Wellness Sdn. Bhd. after listing in the US Capital Market.
Bolton Optical Group of Companies (BOG) was established in 1992, with its core businesses in optical products as distributor and manufacturer in Malaysia.
With the flagship house brand “Simvue” and "Carlo Reno", the group also designs, produces and distributes high-quality optical products consisting of frames, lenses, contact lenses, contact lenses solutions, optical instruments and optical accessories in Malaysia.
BOG owns more than 60 retail eyewear outlets and have approximately 1,800 direct dealing outlets in its portfolio and has expanded its business overseas to cover Singapore, Brunei, Thailand, Vietnam, Cambodia, Laos, Hong Kong, Macau and Taiwan.
The Pain Points of Small Optical Retailers in Malaysia:
Limited Source of Supply
With major distributors preferring to have a few major accounts instead of a list of small retailers.
Cost per unit is higher due to small order quantity and also higher deposits and shorter terms given.
Smaller retailers are unable to stock a wide range of products due to minimum order quantity required and also higher cost per unit would limit such orders.
Different Ordering Requirements
Small retailers with limited resources would find it time consuming and tedious with different ordering requirements.
Lack of Product Knowledge and Training
Small optical retailers have limited resources and miss out on distributors’ training.
For Manufacturers / Distributors in Malaysia:
For overseas manufacturers / distributors to penetrate the local market with their products would take time as they will need to understand the local culture, buying requirements, sentiments etc.
High Cost & Time Consuming
Time required to set-up a company, hiring etc.
With the platform, retailers are able to:
Eliminate Limited Source of Supply
With this platform, this will eliminate multiple account opening and compliance requirements by different distributors. Also, it allows retailers to browse through what they would require.
Retailers can order stocks whenever required rather than having to keep stock (i.e. MOQ requirement). Also cost price is fixed without having to go through alternative suppliers.
Smaller retailers are unable to stock wide range of products due to minimum order quantity required and also higher cost per unit would limit such orders.
Single Ordering Requirement
Ordering method and requirements are standardized, therefore making it easy and save time when ordering.
Availability of Product Knowledge and Training
Product information and online training information is available on a single platform.
Planned delivery timeline and stocks holding and handling is minimal.
With the platform, Manufacturers / Distributors are able to:
Provide a platform for manufacturer / distributors to penetrate the local market without having to set-up a company or hiring etc..
Promotes cost savings (i.e. company set-up not required, hiring etc.)
Manufacturers / Distributors are able to plan their stock holding and with the assistance of local logistics partners (warehousing & transporters), will enjoy effective and efficiency in delivery and stock holding costs.
With this online platform, Simson Wellness Sdn. Bhd. provides solution to retailers to solve their pain points. They would be able to go online to secure optical products from manufacturers / distributors without going through tedious processes and most importantly able to obtain a wide range of varieties at competitive prices without restrictions.
Below is the diagram showing the general business model process:
With this platform, Simson Wellness Sdn. Bhd. is able to standardized ordering and delivery procedures. It provides easy and systematic stock ordering requirements via Simson’s online platform where retailers can select what to purchase. As for manufacturers / distributors registered with Simson Wellness Sdn. Bhd. , they are able to list their goods and services for sales.
Currently, Simson is the main distributor to supply all range of optical products in their digital platform and moving forward will partner with other distributors to supply to optical retail stores.
According to the revenue model year 2021, with the introduction of digital platform, Simson believes it can attract a large number of retail stores from current optical retails stores in the market and targeted to double up the user base in year 2021 with an estimated increase in yearly sales volume of 401,427 as compared to 65,000 of sales volume as at year 2020.
Furthermore, in year 2021, Simson projected their revenue will increase from existing 2.5 million to 20 million and expected to double up in year 2024 at approximately 40 million.
Digital marketing – online advertisement is the immediate key focus to expand the existing branding to a wider targeted audience. Apart from that, continuous expansion of the product database (engage more international distributors into this platform) and building up loyalty membership benefits to retain the targeted audience as well as providing attractive incentives to acquire new members.
We also look at the strategy to secure the sole distribution from key distributors in the Malaysian market which translate this platform to be the sole platform for certain high demand optical products.
Nevertheless, diversification strategy is to be applied as well to the medium-term planning, whilst looking to diversify the products and improve the mechanics on how it works in the industry. With the ultimate goal of integrating the eyewear product manufacturer grit, we can then transform the platform into end-to-end service providers to the targeted audience at global scale, as a One Stop Solution provided in the eyewear industry.
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