Lessons from the US 从美国的经验教训 @ M Hotel, 5 Apr 10

1. Lessons from the US从美国的经验教训@ M Hotel, 5 Apr 10 - Mr Ron Sim, Founder, Chairman and CEO

2. Synopsis 简介 • OSIM was established in 1980 as a trading firm. It has now grown into a global brand spanning over 30 countries. • OSIM成立于1980年作为一个贸易公司。 如今，它已成长为一个遍布全球30多个国家的品牌。 • Mr Ron Sim, Founder, Chairman and CEO of OSIM International shared with experience of doing business in the USA and some insights on the China market. • 罗恩沉先生， OSIM创办人，主席及行政总裁分享在美国和中国市场上的一些业务经验和见解。

3. Lessons from the US – Opening从美国的经验教训 – 开幕 • “Every 10 years, there is a Crisis. Every 10 years, we learn.” • “每隔10年，有一个危机。每隔10年，我们学习。” • ‘85 – ’87 Recession : If you are a trader, you have to become a Builder. Build something you can own or control • ‘85 - ’87经济衰退：如果你是一名商人，你要成为一个建设人。建立你可以拥有或控制的东西 • ‘97 Recession : Stay Focus, Stay Competitive • ‘97经济衰退：保持专注，保持竞争力 • ‘08 Recession : Never depend on / trust a bank. Cash & Cashflow are Kings. • ‘08经济衰退：不能依靠/信托银行。现金及现金流量是王。

4. Lessons from the US – A Framework从美国的经验教训 – 思想框架 What? 什么？ Objective 目标 Core Competencies 核心竞争力 Competitive Advantage竞争优势 How? 如何？ Control 控制权 If cannot Align 对齐 If cannot Manage 管理 Critical for M&A 并购的关键 如果不能 如果不能 What and How? 什么和如何？ Culture 文化 Policy 政策 Strategy 战略 Key to success in these areas are People 这些领域的成功关键是人 Harmonise in the beginning is a Weakness 在开始协调是一个弱点

5. Lessons from the US – Other Points从美国的经验教训 – 其他注意事项 • OSIM’s strengths are in Marketing and Branding. Thus they focus on their strengths to grow, while partnering others, with expertises that they do not have, to grow further and faster. For e.g. OSIM knows that they cannot be the expert in manufacturing of their products. So they build a long-term relationship with the manufacturer and control them by becoming their biggest customer. • OSIM的优势在于市场营销和品牌。 因此，他们专注于自己的优势成长，而与其他人专家合作进一步加快增长。 • Growth in the US is judged by the EBITA* and not profitability of the company. • 在美国市场，衡量增长的是EBITA，而不是公司的盈利能力。 • “Accelerated” growth in the US is based on financial engineering, which once you learnt the ropes, you can multiple the model in many applicable countries i.e. China. • 在美国的“加速” 发展是金融工程，一旦你学会了基础，你可以多模型适用于许多国家，即中国。 • USA’s key strength is in their innovative culture. Their key weakness is productivity. • 美国的主要优势是他们的创新文化。其主要弱点就是生产力。 • Currency Risk – The best method to manage this risk is still using natural hedge. • 货币风险 - 最好的方法来管理这种风险仍在使用自然对冲。 * I may heard wrongly on this term. It could also be Enhanced Value Added.

6. Lessons from the US – On China美国的经验教训 – 关于中国 • On entering China market 在进入中国市场: • Don’t allow foreign shareholders 不允许外国股东 • Subsidiaries must be fully funded by your parent HQ 子公司必须全部由总部充分资助 • On Distribution Network 分布网络: • Don’t sell on credit 不赊销 • Buy cash, Sell cash 购买现金，现金供应 • Even better if you buy credit, sell cash 更好的是如果你购买的赊销，销售现金 • On Counterfeit Products 对假冒产品 : • Very hard to protect IP in China 很难在中国保护知识产权 • Best alternative is to protect your Brand 最好的办法就是保护你的品牌

7. Other Points Shared Sales Structure 销售结构: Executive Highest Level Qtrly/Yearly 行政级 最高 季度/年度 District Qtrly 区级 季度 Branch Monthly 分公司级 每月 Frontline Lowest Level 50/50 前线 最低 半/半 Influence by EBITA Competitive 竞争力 Create Alignment At ALLLevels 在所有的级别创建对齐 Staff 员工 I . C . E . “冰” Effective 有效 Innovative 创新 Product Line 产品线 P.S. I have seem to come across this ICE framework in one of the books I had read last year. I think it was shared by Mr LiewMun Leong, CEO Capitaland, in one of his book. Have to dig into my library of books to verify this again.