Industry dynamics
Xingou Optics, a subsidiary of Largan Optical, takes a large order    2020/06/09
Largan’s investment in a contact lens factory, Xingou Optics, has received an order announcement. Yesterday (8), it announced that it has won an exclusive contract for contact lenses from Watsons’ own brand "Pink by Pure Beauty". Ou's second OEM order is put into the bag.
Xingou Optics adopts brand and OEM dual-engine strategies. It is expected to expand its operation scale with OEM orders. This year's profit is expected to reach new highs, and Largan will benefit greatly.
Largan released a press release yesterday to announce relevant information. This is the first time Largan has issued a press release for its reinvestment in Xingou Optics, in addition to monthly revenue, which shows Largan’s OEM order Attention. Largan is investing in Xingou Optics through Dayang Technology, holding 40.5% of its shares. Its contact lenses are branded under Xingou, and they are marketed throughout Taiwan such as Carrefour, FamilyMart, Kangshimei, Watsons, Mitsui Mitsui, and 1,956 eyewear shops, etc. Distribution base.
After more than ten years of investment, Xingou Optics made a profit for the first time in 2018. Xingou Optics currently has a capital of 1 billion yuan. The main person in charge is Lin Enping, CEO of Largan.
According to Largan’s annual report, Singou Optics made a profit of 57.98 million yuan in 2019, an annual increase of 3.4 times. Although it only accounted for Largan’s total profit of 28.263 billion yuan last year, it was “minimal”, but it was of great significance.
Regarding the layout of contact lenses, Lin Enping once said that Xingou's other goal of developing contact lenses with its own brand is mainly to win OEM orders. However, he said frankly that the gross profit of the ODM orders previously negotiated was too low and no concrete progress has been made. However, Taiwan is actively expanding its channel layout, hoping to increase brand visibility and popularity.
Provided by Economic Daily
According to external analysis, Xingou made a big leap in profit last year. In addition to Taiwan’s wide and deep layout, Lin Enping first revealed at the beginning of this year that Xingou had received an OEM order from a mainland customer last year, encouraging Xingou to make a profit last year. Double growth. In addition to the current Watsons, Xingou has obtained two foundry orders.
Pink by Pure Beauty is Watson's own beauty brand. Largan stated that this is the first time Watsons has entered the contact lens market with its own brand. With its technology and quality advantages, Xingou has won the favor of Watsons. The first wave of cooperation between the two parties was launched. This transparent film is matched with five color films. The transparent film released this time combines a romantic pink style and is the first to launch a new generation of products with a variety of vitamin ingredients. The color film design introduces popular Japanese and Korean styles, targeting the young and female markets. At present, the entire line of products has been exclusively sold in more than 400 Watsons throughout Taiwan.
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