Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 63

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 4
Chunk 63
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operation. However, the prices for beauty appliances have been reduced significantly due to the small size of the products and the low
cost of manufacturing. Currently major players in the industry have outsourced their production from countries, such as China, where the
cost of raw material and labor is lower than the developed countries. The resulting lower the cost of the products has attracted sales
from middle-income consumers who are eager to keep up with the latest beauty standards. This coincides with the increase in disposable
income of consumers, mainly from the developing nations, which has significantly driven the demand for household beauty appliances. Countries
such as India, South Korea, Vietnam, Brazil, Mexico, Nigeria, Myanmar, and others have witnessed large-scale economic development in the
past few years, resulting in a surge in disposable income. As a result, people are spending more on self-care and personal grooming products,
which in turn propels the growth of the household beauty appliances market.

Rise
in Social Media. Consumers are increasingly looking for quality and meaningful interact with different brands throughout
the consumer journey from product trial, word-of-mouth interactions, purchase, after-sales experience. Good experiences and interactions
with the brands bring consumers back for more and attract new consumers through word of mouth and online reviews. With the prevalence
of social media in the world of fashion, makeup, hairstyling, and trendsetting, there is the growing number of promotions and advertisements
for hair styling tools through different media channels. For example, there is rising popularity of social media influencers, DIY hair
styling tutorials, and training videos, which in turn garner the attention of consumers across the world and further promote the use of
hair styling tools.

Surge
in Demand for Personalization. The demand for personalization solutions of beauty and fashion has been on the rise for
creating the right fit for every consumer. In the past, consumers generally used the styling services in salons, including hair-cutting,
coloring and styling and other treatments. Along with the development of technology, personalized solutions using electrical hair styling
tools have satisfied consumers’ needs and saved consumers’ time. Once the technology was launched, consumers began to use
hair styling tools that enable personalization, rather than having treatments in salon.

Growth in E-Commerce Sales
of Personal Care Beauty Appliances. Online retail or e-commerce sector has witnessed an exceptional growth during the past
few years, with an exponential rise during 2020, driven by the COVID-19 pandemic. The improvement in ease of buying