Victory Corp registers solid growth of 10.6 from cosmetics & jewellery business

22 Jun '05

12 min read

As a result of careful planning, the Jewellery products have been integrated into the Eaglescliffe facility, with no increase to fixed costs. International After working closely with our Middle East Franchisee, the Liwa Group, for several years, it has been decided to close the remaining Virgin Cosmetics stores by the end of 2005. The very valuable experience gained in this and other overseas markets confirms beyond doubt that the successful business model developed in the UK is ideally suited for a number of overseas markets.

With this in mind, they have recently concluded an agreement with Black Ginger to develop a Virgin Cosmetics Direct Selling channel in South Africa, supported by a limited number of strategically sited retail outlets. Additionally, they are exploring the opportunity of launching a similarly structured Direct Selling business in Australia and are in discussion with potential partners. They have recently transferred the servicing of our Franchised Spas in South Africa to Koko, having previously terminated earlier arrangements with the Head Franchisee BVI. These changes are proving beneficial.

Development of International markets has been slower than they would have liked. Firstly, they needed to test markets and gain experience. Secondly expansion of the Company's UK market has prior call on limited resources and thirdly, it has taken time to develop an appropriate IT system common to all markets which is scheduled to be compld have liked. Firstly, they needed to test markets and gain experience. Secondly expansion of the Company's UK market has prior call on limited resources and thirdly, it has taken time to develop an appropriate IT system common to all markets which is scheduled to be completed by September 2005.

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