EIG discontinues distribution of Dermalogica in China

Esthetics International Group (EIG), a Malaysia-based distributor , has announced that it will discontinue the distribution of US-based skincare brand Dermalogica products in the Chinese market, due to product registration challenges.

EIG, through its unit EIG Global (China), had signed an exclusive distributorship agreement with Dermalogica to distribute its products in south China on 28 February 2011.

EIG in a filing with Bursa Malaysia said the firm has formally advised Dermalogica that it will be suspending distribution of Dermalogica products in China and consequently, the distributorship agreement will be discontinued effective 31 Dec 2012.

"The discontinuation of this yet to be profitable Guangzhou operations is not expected to have a material financial impact on the financial position and performance of EIG for the year ending March 31 2013," EIG said in a statement.

As a result, EIG will quit its Guangzhou-based skincare product distribution and will support the Chinese market from Hong Kong.

EIG continues to distribute Dermalogica products in Malaysia, Singapore, Thailand, Hong Kong, Indonesia, Brunei, the Philippines and the supply to Vietnam and Cambodia.

Dermalogica brand, which is being distributed in more than 750 salons globally was researched and developed by the International Dermal Institute based in Los Angeles, in the US.

Some of the brand’s products include active moist-a oil-free lotion, clearing skin wash – clearing foam, daily microfoliant -gentle, brightening polisher, dynamic skin recovery spf30 – firming, emollient moisturizer.