OSIM’s uMagic an improvement, but won’t boost sales: analyst

It’s newer and cheaper.

OSIM unveiled its latest massage chair, uMagic, in Singapore stores last weekend, featuring evident improvements in massage technology.

According to analysts at RHB Group, the overall product as part of a progressive evolution and unlikely to engender a big breakthrough in sales volume.

The uMagic sells at a prelaunch price of SGD4,988, and will replace the previous uDivine chair. The more expensive uInfinity range will be kept, although RHB analysts think sales will probably be cannibalised by the similar, newer and cheaper uMagic.

RHB adds that the key selling point is the patented “hand-grip”. We noted in our testing that it is indeed able to massage new shoulder points more precisely, resulting in a better overall experience.

Here’s more from RHB Group:

In terms of design, there is no major breakthrough, but this new model features a marginally smaller profile, which could be a better fit for smaller homes in major cities. Shifting marketing focus.

We expect YoY sales to be flattish, with estimated net profit of SGD27.5m (down 5% YoY and flat QoQ). New TWG store openings in Hong Kong and Guangzhou may result in start-up expenses denting its bottomline. Consumer spending remains muted in its key markets. However, we expect growth to accelerate towards the second half of the year, with the new chair launch and a pick-up in spending activities in China and Hong Kong.