OSIM in dire need of blockbuster products as earnings plummet

Its unexciting massage chair business needs a facelift.

The household appliance company lives by its massage chairs, and dies with it. With at least 60% of its sales stemming from its massage products, OSIM’s recovery from its dismal earnings now hinges on its chairs.

According to analysts from DBS, OSIM’s previous swings at launching breakthrough products have been misses so far, as it saw a declining sales growth trend despite the continued launch of new chairs.

“Despite new chair launches (uMagic, uDivine, uDiva) in the previous quarters, revenue growth rate ex TWG has continued to decline. We now believe that different types of new lifestyle products such as uMagic are required to reverse this trend,” DBS says.

Meanwhile, DBS says the bottomline of OSIM’s struggles still remain connected with fickle consumer sentiment.

“Poor consumption sentiment will be a drag on demand while strong consumption cycle will fuel demand for its products,” DBS said.