Deluxe Rich started its business activity in its early years by just doing contract manufacturing. Recognizing the need to develop and expand its activity from merely doing contract manufacturing and to have more control, consistency and market involvement with its own identity and brands, it launched its first house brand ‘TreeFresh’ in 1998 and since then, numerous more.
While shifting its core activity from contract manufacturing to manufacturing products bearing its own brand, a substantial portion of its activity is still manufacturing products on a contract basis. This segment of the business cannot be phased out yet, growth in this segment in its current environment does not contribute to sustainability. In this business format, customer or brand owner involvement is very limited with little development if not at all. Deluxe Rich is looking into changing this business format through forging joint ventures and partnerships rather than the traditional order-and-produce kind of business relationship. In this new concept, customers and potential customers are invited to be directly involved in product roll out. The degree of involvement will vary depending on viability, need and investment outlay.
Current practices entail that the Company manufacture products under the brand owned by customers using approved formulations. In situations like these, customers have no direct involvement in the development of the products while Deluxe Rich will not be involved in the end marketing strategy. The advantage of such arrangement is that Deluxe Rich shall not be liable for any misgiving in the marketing of the product while the customer will have full control. However, the customer bears full liability for the product and marketability including advertising, promotional and technical issues that might arise. From experience, such an arrangement are one off and thus no sustainability.
What Deluxe Rich is offering to arrest such issue is to work with the customer from product development right up to the marketing phase. From our Center of Excellence which is to be built, our strong research and development team will develop products to meet customer requirements and improve from feedback received from the market. We will even offer to our customer facility under a joint venture programme where we will provide our expertise in processing.
For further collaboration, we are offering our customers turnkey project. Under this programme, the customers are invited to co-invest in the process facilities. Deluxe Rich, with its bank of floor area that is purposely designed and built, will be able to accommodate multiple processing line and integrate it into existing centralized amenities.
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