Malaysia's personal care brand Hygr eyes regional expansion in 2026
Co-founder Chew Hoi Meng said the company has already made initial inroads into Singapore and Brunei, with its next targets being Indonesia, Thailand and the Philippines.
'Singapore shows strong potential, but we haven't had the time to focus there yet,' he told SunBiz.
Chew said the company is in discussions with distributors in Indonesia.
'Indonesia is a big market, but there's a lot of compliance involved,' he said, adding that establishing Hygr in Indonesia would be a major undertaking.
'We may need to spend half of each month on the ground, two weeks in Indonesia and two weeks in Malaysia. That's probably the only way we can build a presence there.'
Chew explained that expanding overseas involves building new teams, localising content and adapting to each country's digital algorithms and consumer behaviour.
'It's like starting from zero. You have to build everything from scratch,' he said, expressing cautious optimism about the company's regional ambitions.
Co-founder Ivor Lim said Hygr's focus for the remainder of 2025 will remain on Malaysia.
With monthly revenue already in the seven-figure range, the company is targeting 100% year-on-year growth.
'From the third and fourth quarters, we'll be launching more products. Just last month, we introduced a deodorant perfume spray, which offers a different application format compared to the balm type previously,' she said.
Lim noted that offline sales are growing steadily, although it is still too early to judge the long-term trend.
'If we expand our SKU range, sales and retail presence will hopefully increase as well,' she said.
Hygr is currently available in more than 400 Watsons outlets and expects to reach 800 stores nationwide by the end of the year.
'Offline allows customers to try the scent and texture in person, which is important for personal care products,' Lim said, adding that offline channels also provide direct customer feedback that enables quicker formula adjustments.
'We're more agile than big brands. If 20–30% of buyers say something's off, we can tweak the next batch,' she said.
However, the co-founders acknowledged that market dynamics are shifting, and sustaining growth will require continued innovation.
'Online sales have dipped. Compared to last year, we're seeing a 20–30% decline,' Chew said, citing rising platform fees and commissions.
'Eventually, platforms like Shopee and TikTok may take up to 30% per sale, similar to offline consignment terms.'
To strike a balance, Hygr is working towards a 50:50 split between online and offline sales. 'That's why we're expanding offline channels,' Chew said.
The recent implementation of the expanded Sales and Service Tax (SST) is also impacting the company's cost structure.
'Most of our raw materials are imported from Europe and Australia. That 8% SST becomes a direct cost to us,' said Chew.
While the company has not increased prices yet, he estimated the SST could add 2–4% to final product prices.
To cushion the impact, the company is taking cost-management measures, including practising first-in, first-out inventory management, maintaining a one-to-two-month stock buffer and minimising storage costs.
'We try to optimise wherever we can to keep prices stable,' Chew said.
Hygr is also investing in automation to reduce labour costs.
Chew said, 'If a task used to require five people, we can now use machines to do it with two. The upfront cost is higher, but over one to two years, it becomes worthwhile.'
The company is also incorporating some local ingredients, such as MCT oil and Langkawi-sourced water, for its sunscreen products.
However, the co-foundeers noted that high costs and a lack of research and development support for Malaysian suppliers continue to be a challenge.
'Sourcing locally is something we want to do, but without government support for SMEs and ingredient producers, it's difficult,' said Lim.
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