*DS Healthcare is an attractive business in a growing high end personal care sector.
* The company is expanding its Global presence and brand awareness.
* Key addition to management.
(DSKX) is engaged in developing products for skin care, personal care, and hair care. It markets its products through a network of specialty retailers, spas, salons, and other distributors primarily in North America, Europe, Asia, and South America. DS Healthcare Group, Inc. formerly known as Divine Skin Inc., is headquartered in Miami Beach, Florida.
The company recently announced on January 11, 2016 new distribution platforms at leading retailers in both China and the US. These are two market focuses for DS Healthcare this year (2016). It will enable a whole new group of customers to conveniently access DS Healthcare products from their homes. DS Healthcare entered into a partnership with (JD.com)(Nasdaq:JD)and VIP.com(Nasdaq:VIPS) in China and Costco.com in the US. According to online research data JD.com is the second largest e-commerce platform in China, they currently have 131.9 million active customers that account for $18.5 billion dollars in sales/revenue in (2014). VIP.com is a top four online retailer with 14.6 million loyal customers and averages 3.1 purchases per customer annually. Finally Costco.com a leading US retailer markets to 50 million loyal shoppers that prefer high end products. These pre-qualified shoppers are specific demographically. They seek higher end, exclusive products. These three new partners and platforms alone along with the company's highly target marketed campaigns that support the launches will bring brand awareness and exposure to millions of new DS Healthcare customers.
Other companies that offer such high end products are Sephora(Private Company), Ulta (Nasdaq:ULTA), Neiman Marcus (IPO early 2016 Ticker NMG), Estee Lauder (Nyse:EL), Cognis (in China opened 2010), Jiangsu Longliqi Group Co., LTD, Shiseido Group (China)L'oreal China, Mary Kay (China),Inc. and Proctor & Gamble(China) LTD. The competition is there, but so is the opportunity in this ever growing industry. China has become one of the largest cosmetic markets in the world and ranks first in Asia. Industry revenue has been growing at 7.1% in the past five years through 2015, to an estimated $19 billion. Over the next five years through 2020 industry revenue is forecasted to grow 7.6% annually to total $27 billion. It is a great market in China, citizens are earning more, and most Chinese manufacturers of cosmetics and personal care products compete with each other in the lower end markets.
DS Laboratories expects these new distribution platforms to be extended with additional products. The DSKX is acquiring through their asset acquisition of W/R Group, Inc. Hallmark products from each brand and sub brands that should be introduced on a rotating basis to serve the marketplaces desire and demand, allowing for the consumer an innovative way to find and purchase products that offer an extremely high value with the convenience of not leaving home. DSKX launched in Walmart Brazil in December 2015. Brazil remains the worlds third largest consumer market for toiletries and stands second for men's and children's hair care products. These new global expansions are anticipated and expected to result in an exponential new stream of revenue for DS Healthcare. With footprints now in China, South America and the addition of Costco, 2016 and the future outlook are bright.
We have just recently initiated coverage of DS Health Care Group Inc., We offer no opinion at this time other than, with the big global push and organic sales plan now in place, if the company realizes the anticipated revenue etc. from those ventures, DSKX could be a very nice long play with short term gain potential. Other firms of note such as HC Wainright, Rodman and Renshaw, and Zacks Investment Research have previously been covering them. On 1/29/16 Zacks Investment Research issued an upgraded new opinion that lifted from a "sell" rating to a "hold" rating. This research report was issued to clients and investors on Tuesday1/26/16 at, Analyst Ratings.Net reports. You may also for further research, etc. visit Yahoo Finance, SEC Filings, or one of the other informational sites like Bloomberg.
DS Healthcare on January 6, 2016 issued news that Mark Brockelman has joined DS Healthcare to help scale its innovative organization into a market leading health and wellness powerhouse. Focusing on technologically advanced, consumer-driven personal care solutions. Mark will oversee all financial operations within the organization.
Mr. Brokelman joins Manny Gonzalez a former Global VP of Sales for Proctor and Gamble-serving as the company's Chief Commercial Officer and Renee Barch-Niles an experienced CPG Exec who drove double digit growth for various Global companies serving as CEO.
Prior to joining DSKX Mark served as the CFO for National Dentex Corporation, as well as the Senior-VP/Chief Financial and Administrative Officer of the Miami Dolphins and Sun Life Stadium.
"Mark's mergers and acquisition experience along with systems integration expertise and highly astute financial acumen will be a tremendous asset to our organization", said Barch-Niles, CEO.
Shares of DS Healthcare Group, Inc. opened at $1.72 on Tuesday 2/2/16 and hit a high for the day of $1.8501, closing the day out at $1.74. The 52 week low is $0.655. The market cap utilizing the 2/2/16 closing price is $33.44M.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.