Ann: CELLMID QUARTERLY OPERATIONAL UPDATE, page-26

“Still cant figure out why QVC US hasnt got in on the ground floor though.”

I suspect that the answer lies with the different marketing strategy thought to be optimal for each individual geographical market.

Although I may have missed it, I have seen no indication of significant sales in Japan through department stores or salons. The main vehicles referred to appear to be on-line sales or primarily the QVC channel, which probably is the most appropriate strategy for China as well. There was some suggestion of duty-free sales.

In Australia we have a mix of pharmacies, salons, e-commerce, commercial TV promotions and sales also have been targeted through general medical practitioners. No major retailers.

The primary US target looks to be the affluent female consumer, one of the planet’s major financial forces. The approach appears to be initial establishment as a prestige retail brand distributed through premium department stores, requiring product viability first to be demonstrated through on-line demand. This is being followed by a professional brand moving into salon distribution. I suspect that those higher-margin distributors would be less keen to become involved if they were competing against the QVC mass market, so the latter may he held on the back burner for a while.

Others may have a different perception.