The product and packaging look sensational along with a powerful marketing program.
A touch of reality. The product is a package of ingredients to push 25 mainly chemicals deeper into your skin and for fine lines and lack of firmness with the OBJ's infuser being the 26 item in the packaging. That is as I read it on the label. Quite happy to be corrected.
Maybe the billions of dollars of P&G will create and sustain this marketing possibility. The product does not save lives, it is a cosmetic.
So
They would be paying massive dollars for distribution alone. Retail loves any new products, it is there life line. They are always on the look out for the next one. Consumers buy in the frenzy, then the reality hits. Will the consumer buy again. Shelf space for any outlet is money. Sure P&G may be even paying for that, but then two factors come into consideration. Sales and the distribution outlet. Initial sales will be substantial, its new. The key is repeat buys.
The might and power of global cosmetic companies is coming under scrutiny because of global education and awareness by social media and the internet. The attention life span of people today is about as long as it takes to turn a smartphone on/off. The choices for product and services are massive and you can sit at home open up the commuter be bombarded with the latest and greatest then have an order placed online from anywhere in the world and delivered 5 days later.
Hence P&G now must use the marketing concept of phase1, 2, 3 and so on to continually change the marketing package. The consumer now demands the next technology. Once again I suggest that the actual physical product is the not the expensive part, the money is spent on the marketing package.
This all comes back to the cash that OBJ will benefit from this collaboration. Sure they will get a percentage of payment. But remember OBJ is taking no risk, and is not distributing or marketing the product.
IMO this will put there royalty payments into some perspective.
That is my process of holding back on taking up shares at this point until I am proved otherwise. Also the ongoing royalty will depend entirely on repeat sales. Hence the existing share price.
Only an opinion and I could be entirely wrong.
OBJ Price at posting:
2.3¢ Sentiment: None Disclosure: Not Held
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