Alcosm was founded in 2020 by serial e-commerce entrepreneur Zikang Tai and has successfully maintained its positioning as one of the leading global cleaning supply and disinfectant brands in Malaysia.
Through a rigorous process, Alcosm is now widely distributed across well-known offline chains such as 7-Eleven, FamilyMart, Watsons, Jaya Grocer, MyNews, Caring Pharmacy and many other major pharmacies in the country. With over 320 offline outlets and footprints, Alcosm is Malaysia’s leading disinfecting wipe with more than 450,000 packs sold in the last 6 months during the COVID-19 pandemic.
With over 12,000 customers nationwide, Alcosm has generated over RM 2.2million in revenue in the short span of 9 months since the start of this year.
Since the pandemic of COVID-19 and implementation of MCO, consumers are becoming more and more conscious of their own health and safety, especially when it comes to household products that can affect their loved ones and businesses.
While the market welcomes many forms of liquid sanitizers and anti-bacterial lotions, there was no clear winner to solve the demand of a high-quality disinfectant product or wet wipe. Locally, Malaysians are well acquainted with liquid form of sanitizers aiming to kill bacteria and germs. At local stores, major hypermarkets, and pharmacies, we find multiple brands carrying canisters and bottled form of sanitizers for household and office use. However, the thought of carrying around bottles or canisters would be an inconvenience for many as they travel to and from work in their cars or public transportation, and perform daily activities that would require sanitization now that the frequency of disinfecting and sanitizing has increased.
On top of that, many also do not know how to choose the right product or which brand is best suited to ensure the highest form of safety and protection from COVID-19. The market is saturated with numerous alcohol-based disinfection products, with some claiming potency in destroying the SARS-CoV-2 (the virus that causes COVID-19 disease)
In a Chinese broadcast media TV interview on Jan 2020, Chinese infectious disease expert Li Lanjuan said that not all alcohol disinfectant is efficient in killing the virus.
“Disinfectants 75% ether alcohol, chlorine, peroxides etc can effectively inactivate the virus. The World Health Organisation (WHO) however has recommended for us to use disinfectant with a concentration of 75%,” said Li.
To make disinfecting more convenient, Alcosm became the first Southeast Asia brand to specialise in alcohol disinfectant wipes with flagship product 75% v/v alcohol wipes following the professionally researched World Health Organisation recommendation of keeping the alcohol content to 75% to make sanitising effective for consumers.
As much as we clean or sanitise our hands, personal belongings such as handbags, handphones, keyboards, purses, steering wheels, and wallets are often overlooked. Laboratory tests of personal belongings such as handbags and handphones have shown that they contain more germs than toilet seats.
Therefore, at a time when the world is experiencing a pandemic, Alcosm aims to make sanitising of hands and personal belongings more convenient by producing them in wipes form.
In making the wipes, Alcosm also took into consideration consumers’ comfort and practicality. FDA (Food and Drug Administration) and NDC (National Drug Code) approved, Alcosm also believes that prevention is better than cure. As wet wipes with at least 75% alcohol evaporates faster, it also became a standard for many wipes in the market.
We spoke to Emergency Physician, Dr. Asad Siddiqui on infectious diseases and his advice in choosing optimum alcohol content in sanitising products. Watch what he has to say here:
As of now, there are 3 types of 75% alcohol wipes available:
- 10 sheets, 75% Alcohol Wipes
- 50 sheets, 75% Alcohol Wipes
- 150 sheets (canister), 75% Alcohol Wipes
As demand for good quality disinfectants increase, we are launching kitchen wipes (guaranteed 100% removal of oil) in Q1 2021 and baby wipes that are eco-friendly using plant based materials and 100% degradable wipes after as we move towards creating a more sustainable range of products.
In the past 9 months since launch and with MCO, consumers are constantly looking for essential disinfectant wipes that are safe to purchase. We have seen tremendous growth in sales through both our offline distribution channels and online presence, and are aiming to grow further with the following sales target:
- 2020 (Jan-Sep): RM2.20mil
- 2021: RM2.86mil 130% Annual Growth
- 2022: RM4.50mil
- 2023: RM6.75mil
- 2024: RM9.80mil
Since launch, we have acquired more than 12,000 customers in Malaysia mainly across Klang Valley, Johor, and Penang. Our target customers are consumers who are looking for good quality disinfectant wipes that are safe and convenient, to use in their daily lives. Majority of our customers are working class across city centers with middle to upper income level.
Mid/High income family; Working class living in Kuala Lumpur or tier 1 and 2 cities.
Model 1: B2B distribution channel
Alcosm is widely distributed across well-known offline chains such as 7-Eleven, FamilyMart,
Watsons, Jaya Grocer, and many other major pharmacies like Caring, BIG Pharmacy, and 170 more in the country. Today we have over 320 outlets and footprints nationwide and our goal is to increase offline distribution further in the coming months and with the funds, we will be able to purchase more inventory and explore mass market distributors and supermarkets like Tesco, AEON, and many more.
Apart from Malaysia, Alcosm is also available in Singapore, with over 2,700 customers and we are also in its 11 NTUC FairPrice, the #1 grocery retailer in Singapore.
Model 2: B2C via online channels
With the pandemic affecting global markets, we seek to understand the global medical disinfectant wipes market. The global Medical Disinfectant Wipes market size is projected to reach USD 3021.7 million by 2026, from USD 2135 million in 2020, at a CAGR of 6.0% during 2021-2026. Reference.
As the first and leading disinfecting wipe with more than 450,000 packs sold in the last 6 months during the COVID-19 pandemic, Alcosm’s first movers advantage in a growing market allows us to focus on not only creating a good quality disinfectant for local households, it has also allowed us to invent new products and work towards becoming an eco-friendly and biodegradable product in the longer run in order to differentiate our brand with other mass market brands.
Our consumers appreciate the practicality in our packaging (first flat design alcohol wipes) as well as innovative products (first 75% alcohol wet wipes) that we will continue to create in the coming years. Locally, the medical disinfectant wipes market is definitely one that is here to stay, and protect us from viruses, germs and bacteria and we strongly believe it is a market and industry that have yet to be tapped on fully.
At present, there are many players such as Reckitt Benckiser, The Clorox Company,
Kimberly-Clark, Lysol 3 as well as other players in the Medical Disinfectant Wipes industry. There are many different types of Medical Disinfectant Wipes. The market can be segmented into: Alcohol Disinfectant Wipes, and Alcohol-free Disinfectant Wipes. Alcoholfree Disinfectant Wipes is the most and contributes to 69.48% market share in 2019 in the US. By application, Health Care is the largest consumer group, with consumption market share of 41.86% in 2019.
Although Alcosm has generated over RM 2.2million in revenue in the short span of 9 months since the start of this year, we are looking to raise at least MYR 2 million ringgit for us to grow further.
With the investment and funding, we look to purchase more inventory and expand our product development capabilities. On top of that, the additional resources will help us increase our distribution and footprints.
To become Asia’s leading cleaning supply and disinfectant brand.
ZiKang Tai is a serial e-commerce entrepreneur with expertise in global digital marketing, growth-hacking, branding strategies, and the consumer goods industry. Through his experiences, he has co-founded two lifestyle brands, Fitgear and Oxwhite and today, together with Alcosm he has helped generate a total revenue of USD 10million in the past 3 years with these brands. The years of hardship being a young entrepreneur it is his wish to continue to grow through immersing himself in the world of entrepreneurship and startups.
The Alcosm team is made up of 8 members, all of whom have relevant experience and are subject matter experts. To highlight the management team in Alcosm, they comprise of:
Ng Chun How, Head of Marketing
A full-stack marketer specialising in establishing, operating and optimising early-stage digital businesses in SEA - with first-hand experience that spans across financial services (B2B), consumer technology, consumer goods, and F&B. Ng sets out to create value through hypothesis testing, qualitative/quantitative analysis, and data-driven decision making. He was previously the Regional Vendor Manager at ServisHero, where he managed to raise USD2.7mil for A-series in 8 months from scratch. He was also a Marketer at Sonno, where he achieved USD500k in revenue in 6 months with a 2-man team.
Lawrence Tan, Head of Operations
Prior to joining Alcosm, he was the co-founder and COO of START Malaysia, an ecosystem developer that focuses on providing community engagement activities, consulting, education and related activities to support entrepreneurs and stakeholders. With over a decade of experience, he is no stranger in the world of ecommerce having been the ECommerce Lead in Under Armour and having worked in Charles & Keith in the early days of his career.
Press links to Alcosm:
- https://www.thesundaily.my/spotlight/alcosm-75-alcohol-wipes-available-in-malaysianow-IK2408974 (The Sun)
- https://www.thestar.com.my/news/nation/2020/04/25/infectious-diseases-expertadvises-on-choosing-optimum-alcohol-content-in-sanitising-product (The Star)
- https://www.sinarharian.com.my/article/82829/EDISI/Selangor-KL/Alcosm-BPAMsumbang-tisu-basah-kepada-KKM (Sinar Harian)
- https://www.sinarharian.com.my/article/80455/BISNES/Tisu-basah-Alcosm-lebihberkesan-membasmi-virus (Sinar Harian) https://bit.ly/3jok9fZ (China Press)
- No shares will be allotted or issued based on this document after six months from the closing of the offer period.
- This issue, offer or invitation for the offering is a proposal not requiring authorisation of the Securities Commission under section 212(8) of the CMSA 2007.
- This document has not been reviewed by the Securities Commission Malaysia. The Securities Commission does not recommend nor assumes responsibility for any information including any statement, opinion or report disclosed in relation to this fund raising exercise and makes no representation as to its accuracy or completeness. The Securities Commission expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the information disclosed.
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