KUALA LUMPUR (July 25): The Body Shop retailer InNature Bhd is planning to enter the beauty and retail business in Taiwan.

In a statement, InNature said it signed a memorandum of understanding (MOU) with Taiwan-based Top Wisdom Investment Co Ltd on Tuesday (July 25), for a potential acquisition of an equity interest of Mayfair House Co Ltd from Top Wisdom.

InNature managing director Datin Mina Cheah-Foong said Mayfair has been in the Taiwan beauty market for more than three decades, with a sizeable network of retail points of sale as well as having a robust presence in online retail channels.

“We believe this MOU is in the best interest of the group to explore expansion into a new market,” she said.

Citing Euromonitor, she said the projected size of Taiwan’s beauty and personal care market in 2023 is US$4.4 billion (RM20.1 billion), which is estimated to be 30% larger than Malaysia’s market.

“We are excited with the potential of Taiwan’s beauty and personal care sector given the market’s high disposable income and advanced consumer awareness of beauty and personal care,” Cheah-Foong added.

For the first quarter ended March 31, 2023 (1QFY2023), InNature’s net profit decreased to RM3 million from RM4.53 million a year ago, as consumer sentiments were weighed down by cost-of-living issues and higher interest rates.

Revenue for 1QFY2023 slipped to RM32.43 million from RM33.74 million.

Cheah-Foong expects a challenging outlook for 2QFY2023 with continued macro headwinds impacting consumer sentiment and supply chain challenges.

“Nevertheless, we believe our group will be profitable and our long-term trajectory remains intact,” she said.

InNature’s share price was unchanged at 60 sen on Tuesday’s noon break, with a market capitalisation of RM423.53 million.