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Hi Jonty,

This paragraph is talking about "the first licensing term sheet, pertaining to the Wave I device" and "these products are regarded as the first generation devices" .. it's simply rehasing the SK-II and Olay launch and re-confirming for the 10th time that these Wave I eye wands are being distributed.

We already know all of this information, that the Olay device was going to focus on USA (and europe I believe?) and was not going to compete with the SK-II device in Asia (although I suspect eventually there will be some minor overlapping).
Olay will not want to completely avoid Asia as it's such a huge market.

There's nothing new here except for the way they have described SK-II and Olay (I suspect to avoid the asx any chance of deeming it to be advertising).

The big unknown variable here is that there are several announcements/references to P&G being in "distribution" already, this would indicate a large order being placed and fulfilled by the 3rd party manufacturer of the Wave I wands - how large remains to be seen, but a launch across several Asian countries and the USA within a few months of each other would require a large amount of stock I would imagine and should leave the 200,000 wands for market research purposes trailing in the dust.

Then the next question is how quick will the follow up orders be? They will know after 1-2 week what the demand and sales rate is, and they will be under some sort of pressure to ensure new stock is on the way. They've already done the "deprivation test" and liked what they saw, and they know there is an underlying demand for the product as evidenced by SK-II raising sales by ~45% during the initial test release.
It is not unrealistic to expect Olay to match or exceed this increase in sales given that it is not priced as a 'premium product' as SK-II is so it is able to appeal significantly to a different market at a different price point. How the Americans will take to the product is yet to be seen, but I don't think they are as full on as the Asians are with regards to cosmetic skin care (in particular whitening creams, if we can get a whitening cream product with OBJ tech with P&G then that will be the biggest product to date, the Asians are going berserk for whitening cream and will / are paying top dollar for it).

If I had to purely speculate on how many wands were ordered, I would hazard a guess at 500k Olay wands and 1.5 million SK-II wands, there is no playing around with this anymore - P&G is taking these upcoming launches very seriously.