Sathelyne International Group takes aromatherapy a level higher with biotechnology, providing network marketing entrepreneurs a greater opportunity to harness health and wealth.
By M. Govind Nair and Yong Sik Fatt
The therapeutic values of modern biotech aromatherapy, which has developed into a multi-million ringgit global industry, are worth their weight in gold.
This is the essence of the message for potential network marketing entrepreneurs all over the world from Sathelyne International Group Ltd that markets air management products under the brand name Bel'Air and which, through extensive research and tests, has elevated aromatherapy to bio-tech aromatherapy or aroma medication.
"We have reports of stringent tests conducted by reputable laboratories around the world to show that our products can eliminate bacteria," said the company's chairman, Kenneth Huang Shu Li, 45, in an interview with Business Today in Kuala Lumpur.
Speaking in Cantonese through an interpreter, he said everybody - man or woman, young or old - needs to breathe in clean air; therefore the potential for this business is very big indeed.
Huang said that by a conservative estimate, the volume of the aroma medication business could be at least one-third of the drinking water business that encompasses mineral water, filtered water and water filters.
"And this is something that will not become obsolete; it is everlasting," he said.
As a means of indicating the enormity of the business, Huang revealed that for August 2003 the company's turnover was about RM50 million.
Business growth has been tremendous too. In the three years since it launched the Bel'Air business in 2000, Sathelyne International has established itself in 12 countries.
Shiang Series Sdn Bhd handles Sathelyne International's operations in Malaysia.
AROMATHERAPY
What is aromatherapy? Basically, it is a method of treating bodily ailments using essential plant oils.
Huang said essential oils been around for thousands of years, their use having been introduced by the Egyptians. Then, these oils lost their importance in history for some time.
In those days, he said, people never did any research on the product. The essential oils then were in pure form. They were mixed with water, the mixture heated and then diffused into the air.
In1897 a French pharmacist combined the therapy of essential oils with his innovative method to produce optimum therapeutic effects of the natural plant extract. He blended the essential oils with a unique formula and diffused the mixture into the air at a finely controlled temperature through a special catalytic burner.
Essential oils started to become popular again in Europe about 50 to 60 years ago. Until very recently, aromatherapy was applied basically for cleaning the air and removing odours.
Today, Huang said, aromatherapy is very closely related to the health of man. In the past, many people had ignored this form of therapy, he said, adding that the time was now right to revive this practice because people will benefit from it.
Huang said human healthcare has become an important issue in recent years, and aroma medication can be a good business to engage in. The business brings to people not only good health but also wealth.
Generally speaking, health is wealth. But for people engaged in the Bel'Air business, health creates wealth. And the wealth keeps growing in the form of residual income.
RESEARCH
Sathelyne International is focused on achieving excellence in quality for its products through emphasis on modern scientific research and development.
When the company started its Bel'Air factory in France in 2000, much of the initial work was devoted to research and development.
With a vision to be the world's leading producer and distributor of essential oils for hygienic and healthy air, Sathelyne International has obtained international certifications for its R&D efforts and safety and quality standards.
"We are committed to provide safe and clean air enhanced with healthcare benefits. International endorsement with scientific findings of bacteria elimination is our assurance of quality standard for the Asian, Middle East, US and world markets.
"Our research shows that many herbs are beneficial to human health. We did laboratory tests on the products to determine whether they can really eliminate bacteria and whether they have therapeutic effects," said Huang.
He also said that no other company could boast of such stringent adherence to quality control as Sathelyne International.
"All our oils are organic in nature and benzene-free, thus ensuring safe use by pregnant mothers and children. The catchword is 'safe use" – isn't that of paramount importance when are talking about inhalation?
“We know that with so many countries endorsing our product, it can only mean that we are able to penetrate the world markets. We don't give any hearsay information but show documented proof of safety and effectiveness," he said.
Huang said research, showed that most of the European essential oils, such as rose and lavender, are very mild.
"We also started to collect the different types of common herbs that the people use. One of these is basil, which was recommended by an Indian who told us that this particular herb has been used by Indians to treat certain ailments.
We were told that basil is used in India to treat colds, coughs and asthma. In our tests, we discovered that basil has really got these properties," Huang said.
The researchers also collected a lot of herbs used by people in China. One of the essential oils developed through such research has been named magnolia, which has been found to be good for healing wounds as well as nose and throat infections.
"This particular product is very closely related to our everyday living. People feel very relaxed and comfortable using this. It is like a natural process having the product around us, having a good atmosphere," he said.
Huang said SatheIyne International does not compromise on the quality of its products, hence the focus and investment on the research and development.
In the initial years, almost half of the company’s capital was channelled into research and development.
"Investment is very heavy because we employ a large number of scientists and professors," he said.
Huang said it was difficult to set a figure on the amount spent on the research and development of an essential oil because it was an ongoing process.
"After we have developed an essential oil, it will be left to the scientists and professors for further research on its effectiveness.
"We also test the oil on humans. Blood samples are taken from volunteers who use the product to determine changes in the blood content," he said.
The research and tests are carried out in two laboratories, one in Taiwan and the other in China.
However, there is collaboration between the scientists in Taiwan and their counterparts in Japan and other Asian countries because many of the scientists had studied in Japan and other parts of Asia.
INDOOR AIR
Huang said there was great potential for the aroma medication business because it was not restricted to any segment of the population.
“This product is not only for the sick, it is for normal people to stay healthy or for disease prevention. Of course, people who have health problems and are faced with stress have to use it more," he said.
Huang talked about the adverse effects to health brought on by environmental pollution and lifestyle changes but most importantly he emphasised the poor quality of indoor air.
It is estimated that on average an individual spends 80% of time indoors. The high cost of living and pressure for space have resulted in smaller living areas, with a higher tendency for congestion and poor ventilation.
In an enclosed indoor environment, the living conditions often come with pollutants such as cigarette smoke, dust, fungi and spores, dropping from dust mites, chemicals from photocopy machines and construction materials (glue, paint) and smoke from cooking.
"Sustained exposure to these elements can cause cancer, respiratory ailments such as asthma, hypersensitive rhinitis, hypersensitive dermatitis and deterioration of the immune system," he said.
Huang said these conditions were compounded by the fact that Asians live a less comfortable life than Europeans. This has resulted in more bacteria in the air.
"So, a lot of people tend to like this product more. They find that this product can make them feel better. That is the reason why we did so many laboratory tests on the bacteria-elimination properties of this product, and also on the benefits that this product could give us. Just to show that this product really works," he said.
Huang said the Bel'Air product is effective as a medication because it is backed by documented proof of research and tests and was way above the products that are generally used for cleaning odours and the atmosphere.
"A lot of other brands of similar products will begin to copy and come into the market for a share but whoever who is able to invest heavily in R&D and move the product to a higher level will dominate the market. We make it a point to keep our quality at the highest level in this industry," he said.
EDUCATION
Huang discovered that essential oils are closely related to man when he was in the cosmetics business.
About seven to eight years ago, he came to know that air , pollution in this part of the world, particularly Southeast Asia, was getting from bad its worse, and realised that aromatherapy can develop into a big business.
But it was not enough only for him to know the state of the environment to grow such a business. The people had to be educated as well.
When he went into the business (marketing a different brand at that time), he had to initiate programmes to educate the people on why the air was so bad and how air pollution affected the people.
"When we started to tell people about this, many of them asked why they should have to pay for clean and fresh air," he said.
Huang said he faced great difficulty penetrating the market. But he did not give up. He set up promotion counters at department stores and bought advertisements in the media, just to let people know how dirty the air is and how important clean and fresh air is to human.
"People did not believe in what we were saying. In the second year, we discovered that these methods were not good enough. It was then that we began to use network marketing or multi-level marketing (MLM). In MLM, we mobilise people to spread the news to people. We discovered that this was an effective way of educating the general public," he said.
However, MLM did not mean plain sailing. The distributors or members had to be educated too.
"In the beginning we were just using the information that was already there about pollution and so on. But today, after investing heavily in R&D, it is easier because we can show proof that our product can tackle the problem. People have begun to accept the facts," he said.There were other setbacks too.
Essential oils have been inexistence in Europe for more than 100 years and once they started to become popular about 50 to 60 years ago, there was no problem with supply. But in 1999, there was a supply problem because of the enormous demand created through Huang's efforts in Asia.
The popularity of the product and the lack of supply caused many Western medical practitioners to ask whether the benefits were real or just made up.
This and other questions were channelled by the distributors to the headquarters for answers but there was no response and not much R&D was done to verify statements.
It was then that Huang started his own factory in Paris and had his own brand - Bel'Air - in 2000.
"In this way, we could also control our business direction and focus on product research and development. At that time, we enthusiastically promoted aromatherapy.
We now aim to cast aside the simple concept of aromatherapy being just able to purify and deodorise the air.
We want aromatherapy to be in the realms of healthcare. We believe that aromatherapy is not just about making our environment smell better," he said.
Between 2000 and 2003, Sathelyne International concentrated heavily on the research of the product and on getting the product tested in reputable labs.
"Now many people are very satisfied because we have a lot of test reports to show them," he said.
THE BEL’AIR BUSINESS
The Bel'Air business is officially established in 12 countries - Taiwan, Hong Kong, Malaysia, Singapore, Thailand, Indonesia, Japan, Philippines, China, South Korea, Macau and the United States.
Huang said Sathelyne International plans to focus on growing the business to a healthy level in these 12 countries before moving on.
He also said that the company's turnover for August 2003 was RM50 million, adding that this volume was "very insignificant" because the real worth of the aromatherapy industry is "very big".
"What we did in August is only 5% of the real possible business. We estimate that we can penetrate 35% to 40% of the population, the reason being that this business can be one-third of the drinking water business. Drinking water is something that everybody needs.
"This product will penetrate 35% to 40% of the population. The others will not use it or will not believe in it. The figure of 35% to 40% is very huge. We have only done 5% now," he said.
Huang also said that he always believed that aroma medication would be able to dominate 50% of the total aromatherapy market.
"A lot of people now realise that using bio-tech aromatherapy can improve their health."
PRODUCT & SAFETY
The product works though a unique feature – the catalytic burner.
The catalytic burner has to be ignited with a flame for two minutes. The burner head will heat up at a range of 60 degrees Celcius to about 300 degrees Celcius. Upon combustion, the phytoncidere (immune system of the plant) will be released, which will fill the air with biochemical compounds beneficial to the human body.
From the energy concept, essential oils are said to be best suited to improve human health from ailment conditions like tiredness, fatigue, allergy, depression, chest congestion, flu, migraine, insomnia, backache, high cholesterol level, diabetes and so on, because the energy vibration of the essential oil is the closest to that of the human cell.
It is said that the benefits are remarkable, as many users notice an improvement in their condition within a few hours. For some it may take a few weeks.
Users are advised to make sure that the surface around the diffuser is wiped dry and the burner head is properly fitted into the diffuser before lighting the catalytic burner. There should be no gap between the burner and the rest of the lamp.
Huang gave the assurance that proper use of the diffuser and catalytic burner posed no danger to users.
"It is just like any kerosene lamp. If you light it up properly, there is no danger at all," he said.
Nevertheless, anticipating the apprehension of potential users, Sathelyne International invested in R&D and has come up with device that will heat the catalytic burner head up to 1,200 degrees Celsius without producing a flame.
The device, which has been patented and will be marketed soon, uses infrared light and electricity, thus eliminating the need for a flame and guaranteeing safety of use, said Huang.
He also said that with such a safe device, the company expects to penetrate deeper into the aromatherapy market as well.
Huang said the device was developed after trials and tests over the past two years. During research, it was found that the catalytic burner head would burst into flames once the temperature reached 500 degrees Celsius.
"We failed many, many times. At the end, through our research, we found that using infrared light, we are able to raise the temperature to 1,200 degrees within two seconds," he said.
He expects the device to be available to Bel'Air distributors by the middle of October 2003. The device does not necessitate changing of the catalytic burner head.
Huang also spoke of another patented product – a burner designed to rest atop the catalytic burner, which is used to heat pure essential oil.
"Don’t think this is a simple common device. This has been developed and patented by us. This can diffuse pure essential oil. Certain oils have to be diffused using this device. This device has been developed for more direct and faster effects.
"When pure essential oil is diffused, it is faster and more direct. About 10 minutes after it is diffused, there will not be any oil left on the head of the burner. The head will not smell of the essential oil. All the oil will be diffused completely into the air. This is to penetrate our body through our lungs and into our blood," he said.
Huang said Sathelyne International is the leader in the aromatherapy product and market business because "we have led aromatherapy into aroma medication and we have also led it into safety of usage".
"These are the two things that most competitors will be unable to emulate."
NETWORK MARKETING
Huang said there were several reasons why he chose to market the Bel'Air product through network marketing.
Firstly, he said, network marketing facilitated the education of the people on the product and the business.
Secondly, network marketing is a worldwide marketing trend now
Thirdly, the people engaged in network marketing remain united, something that is difficult to achieve in the traditional form of business.
Fourthly, network marketing does not burden distributors in terms of investment. Once the company has established itself in a particular country, the distributors can travel there and do the business without having to be worry about stocks, administration and staff problems.
Huang said Sathelyne International's network marketing business was different from other MLM businesses because there is no consumption of the product - only breathing in, which is done unconsciously.
He also said that the company pays out up to 70% of its retail price as commission to distributors, which is one of the highest in the world.
Owing to the huge percentage of commission payments, several of the distributors are earning almost RM2 million per annum from the business, some are earning RM1 million and many are drawing between RM500,000 and RM800,000.
Huang sees a saturation point of 35% to 40% of the population for the product in developed countries. As for Malaysia, he said the saturation point should be about 25% to 30%.
Today, it is estimated that the company has only penetrated about 1.5% of the market.
"The potential is very, very big," he said.
MANUFACTURE
Sathelyne International has its headquarters in Taiwan but almost all its products are manufactured in France.
"The refill has to be made in France due to the long history and technology that goes with the product. There is a very rare chance of other countries producing a similar product," he said.
Huang did try to source the product from elsewhere but so far nobody is able to produce it.
"If any other country is able to produce it, the quality will be very bad and there is no way we can buy that."
As for the diffusers, up to three to four years ago, all the diffusers were made in France.
"The prices were very high, they were very expensive. In order for us to penetrate the general public, the product has to be very reasonably priced. So, now, we are beginning to have some of the reasonably priced diffusers made in Asia but some of the more difficult models that need French technology are still made in France," he said.
Huang said some of the glass diffusers are being manufactured in Indonesia and that in terms of beauty and quality they are as good as those made in France.
"Those average and low-priced glass diffusers manufactured in Asia are even better than those made in France - these are glass diffusers we are talking about," he said, adding that the company was also looking at China, Taiwan and Malaysia for manufacture of the glass diffusers.
In fact, the company is already sourcing to manufacture in Malaysia.
"We are planning to start a mould here already," he said in reference to the diffuser.
ESSENTIAL OILS
Sathelyne International has come up with 23 types of essential oils.
Huang said: "In the past, we came up with so many types of fragrances to suit everybody. Everybody has preferences."
He said the company had no plans now to add on more fragrances but was doing research on making some of the existing oils more effective as the direction is towards aroma medication.
"I believe that our Bel'Air bio-tech aromatherapy will carry on for the next 10, 100 or even 1,000 years because this is closely related to human health. Other brands may be fashionable products but ours is a necessity."
COLLECTORS' ITEMS
While Sathelyne International places great importance on the health of users of Bel'Air products, it has used fine artistry to manufacture products that serve as unique collectors' items.
"All Bel'Air products are masterpieces from France's top artisans, made with the best raw materials from reputable suppliers," said Huang who himself has exquisite tastes where Bel'Air diffusers are concerned.
One of these rare collectors' items is in the shape of the pyramid, hand-made from porcelain with an engraved crystal diffuser within. Only four of these pyramids have been produced, and two are owned by Malaysians. Each pyramid costs RM7,500.
SATISFACTION
It gives satisfaction to Huang to know that Bel'Air distributors are enjoying the good life, with good health and wealth.
His aspiration is to help all distributors to develop their careers and achieve their personal goals and enjoy financial freedom.
Huang lives in Taiwan with wife, Linda, and their daughter. Born in Cambodia, he moved to Hong Kong with his parents when he was 10 years old. Educated in Hong Kong, Huang is the sixth of seven siblings, many of whom are in business.
After getting into the MLM business, Huang said, he learnt a lot about people, especially people's personality and behaviour. He has learnt the good things about people and come across their bad traits. He has made it a point to acquire the good points.
Huang has spent much time on his business. Two years ago, he used to spend about 80% of his time on the business. Now that the business has matured, he spends about 60% of his time on it.
The other 40% of the time is spent on thinking of ways to improve the business.
He does not believe that one has to spend 100% of one's time on the business for it to be successful. "We should spend some time to think about the things that we do, whether they are right or wrong," he said.
Huang still gives talks to and trains distributors. He said he did not want to distance himself from his distributors. Furthermore, there is always new information on the business and products that he has to pass on.
As a caring individual, Huang has made generous donations in the name of charity to organisations in the countries where Sathelyne International has established the Bel'Air business.
THE FUTURE
Huang said that the market is ready for an environment friendly solution to the air pollution problem and that people are beginning to realise that clean air is no longer free.
"Polluted air is not an option acceptable anymore," he added.
Acknowledging that competition is not an issue to be sneezed at, Huang said Sathelyne International is set to rule the skies for exponential growth of the air management market worldwide.
"Our emphasis on R&D will ensure that we will be No. 1 in the essential oils markets as we have evolved from being just a scent company to health and medicare.
"Even if competition comes into the market, we will prevail because of our pioneering efforts into uncharted waters to bring the use of essential oils into prominence with safety and efficacy," he said.
"What a great future lies ahead of us!" he said as a means of conveying a significant message to all Bel'Air network marketers.
A network marketer is often likened to a butterfly flapping its wings in one part of the world, and creating a wave that eventually turns into a hurricane halfway around the globe.
Sathelyne International has begun to flap its wings, creating a wave of biotech aromatherapy that is set to take the world by storm.
Adapted from the Cover Story of Business Today, October 2003 issue
(photographs and captions courtesy of Business Today)
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