DS HEALTHCARE GROUP INC December 7, 2015
Fellow Shareholders,
As we near the end of the year and look to enter 2016 in the short weeks ahead of us, it's a good time as the new CEO to share with you our detailed plans to help you better understand our assertive actions in the coming weeks, months and years ahead.
WR Group Acquisition Announcement - we were thrilled to announce this strategic asset acquisition just a couple of months ago and are just moments away from a successful close. We have already been occupied with the development of our plans for a quick integration of WR Group's innovative customer acquisition and retention technology platform. Value will be rapidly created as we leverage this asset along with the highly valuable global brand and product portfolio.To quote T.S. Eliot; 'For last year's words belong to last year's language and next year's words await another voice. And to make an end is to make a beginning.' DS Laboratories has a new voice, a new vision, mission and set of values with evolutionary principles and initiatives that are clearly focused upon the growth and long-term stability of DS Healthcare. I am pleased to share our future with you:
Integrity in all actions
Commitment to excellence in all aspects of our business
Bleeding-Edge Research always remains as a part of our DNA
Accountability for our responsibilities & our actions
Respect & Empowerment for ourselves, customers & all team members
Make a Difference via amazing products that deliver results to consumers and give back to influence a better world
Leveraging all of my past experience and that of our executive leadership team and the board, 2016 will be a pivotal year through the relentless focus upon achieving our vision, mission and delivering upon a few, specific strategic company goals. I am delighted to share these goals with you as the team and I work diligently to achieve success for our shareholders:
#1. Respect & Growth of our Global Team Members. The foundation of any great company begins with having the right people in the right roles at the right time. Our focus will be about attracting, selecting and engaging a best-in-class, diverse and inclusive work force. We will develop strategic team member competencies through continuous coaching, development, and clearly aligned goals and performance expectations for all team members. Our decision making processes and follow through will be based on sound business case development and organizational betterment. I truly believe that the people drive the vision. In late 2015, DS Healthcare made substantial executive leadership changes. I have openly discussed my 15+ years of dedication to the consumer product goods and retail industries along my absolute passion and commitment to the health and wellness industry for over a dozen years. We have proactively shared with you our addition of Manny Gonzalez as our new Chief Commercial Officer with over 20 valuable years with the personal care company Procter & Gamble, where he held executive positions in both Sales and Innovation Leadership. And we have started to share Dr. Brijesh Patel's (DS Healthcare's Head of Research, Development & Quality Control) implementation of our new Gold Standard Quality & Regulatory Programs. It was also a great honor to share with the entire industry that we have brought on Dr. Antonella Tosti, world-renowned Physician, Dermatologist, and Scientist to become our esteemed Medical Advisor. Responsible for groundbreaking contributions in the field of Dermatology and Hair Disorders, with over 650 scientific publications and academic textbooks, she will contribute to our vision of innovating scientifically proven, bleeding-edge personal care products that make a meaningful difference in the lives of our customers. We are proud to have such talented people leading great efforts.Which will Empower our Organization to:
Every goal requires first steps and the initial step to this long-term goal is to consistently generate meaningful profitability. This will not be achieved overnight and it will require sacrifice on some performance metrics while we restructure some of our business models, markets and organizational structures to focus upon intelligent growth. We will leverage our company's outstanding, innovative DNA to identify and aggressively target growth markets and segments through creative consumer research and development. This will allow us to focus our chemists and innovation leaders to develop bleeding-edge molecules, compounds, applications and personal care solutions to create 'famous for' platforms and potential new drug introductions. We will do this while instituting an unwavering commitment to have the highest quality products and services through our new Gold Standard Quality, Regulatory & Customer Service Programs. And finally, by better promoting our ownership, development and use of our Intellectual Property, we will drive a sustainable point of difference and consumer loyalty that will lead to long-term profitability.
And
Enabling us to
#4. Drive Demand and Sell-Through to Delight our Customers, Consumers and Shareholders by building our customer's trust that the DS Healthcare name will consistently deliver high-performance, results-oriented, quality brands, services and solutions with a 'First Time Right' delivery. Growing as an organization to truly listen and understand our customer's needs with a passionate desire to solve our customer's problems we will elevate our reputation so that customers and clients love doing business with DS Healthcare because we deliver personalized, proactive service with integrity. We will be a one-stop solution for niche, problem-solving personal care products that address the open white space that large, multi-national companies cannot or do not wish to invest in to address the consumer's need in a timely manner. Our customer service platform will support high-quality, sell-through from content creation to custom tailored marketing programs that drive awareness, excitement and conversion. We will always staff our education and customer service teams with highly qualified, driven leaders that work with our customers to drive sales and margins that exceed our client's expectations.Resulting in
I made a significant career change to come to DS Healthcare because I foresaw a bright future and I was confident in my ability to manifest a noteworthy difference. I am proud to have such an opportunity and I assure you that I do not take this responsibility lightly as I earnestly work to create a powerhouse healthcare company built on next generation technologies and advances. Many of you have requested more communication and to that request, we are committing to a schedule of shareholder calls at the close of each quarter and when there is critical, material information to share about the company. We are also looking at other vehicles of communication and information sharing in 2016 and beyond. Know that we remain highly committed to sharing with you all the news, good or bad, as soon as possible. Knowing with confidence that we are setting the stage for significantly positive communications in 2016 and beyond.
Fellow shareholders, when we reach our goals discussed in this letter, the outcome will be increased interest, investment and excitement in DS Healthcare's future value. Our stock is undervalued and that is the exciting challenge for me to build the foundation of excellence in processes, systems, know-how and continuous improvement as a company known for innovative leadership in the exploding personal care and wellness industry. To give you all just a taste of what we are pursuing together, I reference a new GSWS (Global Spa & Wellness Summit) report analyzing 10 wellness sectors that shows astounding growth in all areas. They state that 'wellness' is a staggering $3.4 trillion dollar global market and one of the biggest, fastest growing industries on earth. To give extra context, they also stated that it is 3.4 times larger the $1 trillion dollar, global pharmaceutical industry. They also had Paul Price, keynote speaker, who is a retail and marketing expert speaking about technology in relation to health and wellness. His suggestion is one that we have already begun to integrate into our company; IT integration into the marketing department versus the other way around. This is critical as we recognize that technology will remain at the forefront of personal care and it will continue to embed itself deeper and deeper into the fabric of everything we do from waking up and brushing our teeth to how and when we shop to the way we deliver products 'on demand' to help our consumers sift through endless information in search of the right, personalized solution to meet their specific, personal care needs and concerns.Know that the board and management are aware of the challenges of the past and have heard some of the unfounded skepticism. We recognize that the company grew quickly without the necessary infrastructure to support such rapid growth. We have reflected upon the need for tight controls over project management and delivery of new launches is at the forefront of our strategic plans. We are investing in new tools to support our team members to assure execution is flawless and valuable lessons have been learned. Action has been taken along with making decisions to bring in new executive management and team members and our board selected leaders with highly relevant experience to take DS Healthcare to the next stages of growth. This is a new DS Healthcare in many ways and you hold shares along with almost every DS Healthcare
team member who have believed in the future value of the company. This assures that everyone working at our company is aligned and invested to win and make DS Healthcare successful. I share all of this with you as I am on the front lines with boots on the ground watching the fundamentals being worked on and disciplined execution becoming an operating system in our organization.
In conclusion, as your new CEO, I wish to extend a warm thank you for your support, input and commitment to being a part of the DS Healthcare family and your continued belief about our future value. The future is bright and we have a powerful vision that is propelling us forward. I deeply believe that those who aspire to make a difference in many lives will qualify for support and achieve great things as the world needs companies like DS Healthcare that are committed to contributing to the betterment of the future.
Wishing you a Healthy, Happy & Very Prosperous 2016!
Warm regards,
Renee Barch-Niles, C.E.O. DS Healthcare Inc.
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