Sunscreen maker sees potential in China
Shares in Skin Elements started trading on the Australian share market on Friday, opening at 20.5 cents – 0.5 cents above the issue price of 20 cents per share. The securities were 20 cents at the close.
Skin Elements expects to use the $3.7 million raised in its public share offer for the market launch and future development of its lead product, Soleo Organics natural sunscreen, and for the development of a natural cosmetics range.
Skin Elements chairman Peter Malone says the company’s priority now is to get pharmacies in Australia to carry the Soleo sunscreen, and to launch the product in the big US market, ready for the June 2018 summer there.
Skin Elements is also anticipating Chinese regulatory approval for the sunscreen around mid-2017 and has already appointed a distributor in China. Malone says the Chinese market, which has a significant proportion of its population living in coastal areas, has the potential to rival the US market.
“China has the ability to punch as hard as the US market over time,” Malone told AAP. “They understand that sitting on the water with your feet in the water gets your white skin burnt, and they particularly don’t like going dark.
“We (Australians) don’t mind sitting at the beach and getting tanned. They (Chinese consumers) are the opposite – they don’t like the tan.”
Malone said Chinese consumers also favoured natural products.
“This (Soleo Organics sunscreen) fits in that category, so it (China) is showing a lot of signs that it’s going to be very good for us,” he said.
Skin Elements aims to be a significant provider of high-quality natural skincare products in major markets, as an alternative to chemical-based products.
Skin Elements says the Soleo Organics sunscreen is chemical-free; has regulatory approval in Australia, the US, Canada, Japan and many other countries; has been through a successful global test marketing phase; and is targeted at the health-conscious consumers.
The Soleo Organics sunscreen contains organically sourced grape seed and macadamia oils, green tea and chamomile extracts, sunflower and vegetable oils, beeswax and candelilla wax, cucumber extract and other natural ingredients.
The company says the sunscreen does not contain any chemical UV absorbers, titanium dioxide, synthetic preservatives or synthetic colours or fragrances.