products
The Scent Of Success
With access to sustainably-sourced agarwood and a burgeoning demand for
agarwood products, ZAG Retail Group and its brands are well-poised to take the
market by storm. By Ariel Chew
R
evered for centuries in many
cultures, agarwood (also
known as oud) boasts of
countless benefits ranging from
healing properties to long-lasting
perfumery. Verrill J. Choo came
across the amazing natural material
whilst searching for a viable business
opportunity, and was impressed
by its high value. The Managing
Director of ZAG Retail Group said:
“It was at this time that I met my
current business partner, Ivan. What
he said amazed me — that about
2.5 teaspoons of agarwood oil in the
marketplace can cost anything from
S$300 to S$1,200.” It is little wonder
that most circles call it the “Diamond
of Wood”.
76
| SmartInvestor | 10 . 2016
An Ingredient Fit
for A King
Upon further research, Choo
found out that agarwood
is not a recent discovery
but one that dates back
to ancient history. “In East
China, it was documented
Verrill J. Choo
in their traditional medicinal
books of agarwood’s healing
Choo started to wonder why there
and even cancer-curing
weren’t more agarwood products
properties. In the West of France,
in the retail market. “Currently,
King Louis the XIV had decadent
there’s a tea brand offering a blend
luxurious habits such as washing his
of agarwood tea, and a cosmetics
robes and clothes in agarwood, so
and skincare company that recently
that its aromatic scent would linger,”
launched a small series of agarwoodhe shared.
based products,” he said. “So, there
Enthralled with and convinced
is still a wide gap to be filled.”
of agarwood’s manifold benefits,
Sustainable Agarwood
Supply
The timing was fortuitous as his
partner Ivan had gained access
to agarwood trees. “At about the
same time as I was considering to
venture into the agarwood product
retail business, Ivan’s company,
Zenith Agro Group had signed
an MoU with the Department of
Development, Ministry of National
Defense, in Cambodia. This gave
him access to about 6 million mature
agarwood trees.”
According to Choo, agarwood
trees are classified by the
Convention of International Trade
in Endangered Species of Wild
Flora and Fauna (CITES) as an
endangered species. Choo divulged:
“So wild agarwood trees are
diminishing and therefore, are illegal
to harvest. What my partner has
access to are cultivated (not wild)
agarwood trees. This ensures that
ZAG Retail Group has a constant
supply of raw materials for the
products under our brands.”
Agarwood Products
for the Masses
The brands created by ZAG Retail
Group are specially crafted to
capitalise on the different niches in
the agarwood trend. Formulated
from natural and organic ingredients
that are sourced sustainably, the
Group designs, manufactures and
markets a wide range of beauty and
personal care products under five
core brands, two of which are:
• Oudh Origin - Provider of highend agarwood oil products including
fragrances, shower gel, body mist,
reed diffusers, soap bars, hand
cream and scented candles.
• Oud Tea - Provider of unique
and premium blends of agarwood
“What my partner has access to are
cultivated (not wild) agarwood trees.
This ensures that ZAG Retail Group has a
constant supply of raw materials for the
products under our brands.”
tea that is beneficial to health, in a
stylish and simple packaging.
The brands are in line with the
group’s objective which is to bring
the benefits of agarwood into the
consumer’s everyday life, as well
as their philosophy of only using
sustainably-sourced agarwood that
is natural and of high quality.
The group is currently focused
“Enthralled with
and convinced
of agarwood’s
manifold benefits,
Choo started to
wonder why there
weren’t more
agarwood products
in the retail market. ”
on market penetration and will
launch their concept store in
Bangkok soon. The next phase
would see the digitisation of their
retail platform. “Within the next
18 months, we plan to list on the
SGX Catalist board, followed by
a strategy to aggressively capture
more market share. After that,
we plan to embark on an M&A
strategy,” Choo revealed.
As the region’s first natural
beauty and wellness products
player that uses sustainablysourced agarwood-based
ingredients, ZAG Retail Group
aims to be a leading player in the
natural beauty and wellness market
by 2026, said Choo. With the
agarwood supply already met, and
the demand for agarwood in the
marketplace starting to increase,
he is confident that ZAG Retail
Group and its brands are wellpoised to capture the market.
SmartInvestor | 10 . 2016 |
77