Amway's smile cuts through the economic gloom
presenters show Amway’s new health product, Nutrilite Double X, for which it targets sales of Bt200 million this year and Bt500 million next year.
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Gloomy economic conditions spur people to focus on maintaining good health to avoid the high costs of medical treatment, according to Preecha Prakobkit, managing director of direct sales giant Amway (Thailand) Ltd.
He cited the 2005 Roper Reports Worldwide survey of consumer behaviour in more than 30 countries, which found that good health ranked first in concerns of more than 84 per cent of 30,000 respondents aged 13 and higher. Financial security ranked second, followed by having their own house and a happy marriage. Amway and other manufacturers of food supplements are gaining direct benefits from changing behaviour in markets worldwide, including Thailand, because people are these days willing to pay for quality food supplements. Preecha said Amway had achieved its sales targets in the first four months of this year. However, he declined to reveal figures. Amway has also recorded consistent monthly growth in new members. He said a major reason for these achievements was the company's reputation in the direct-sales business. Times of economic slowdown lead people to find additional jobs to ensure their financial security, and becoming an independent sales agent for a well-known direct-sales company is the easiest way, he said. The job requires low investment and business experience is not essential because the company offers training. In addition, it responds directly to all problems arising from the goods it manufactures, he said. Amway has 400,000 members in Thailand and 250,000 of them renew every year, Preecha said. Amway's latest food supplement product is Nutrilite Double X. Each box contains 186 tablets in three air-sealed packages - 62 tablets each of multivitamins, multiminerals and phyto-nutrients. One package is priced at Bt2,500. The company expects sales of Nutrilite Double X, developed and produced in the US, to reach Bt200 million this year and Bt500 million next year. Sales of Amway's 36 Nutrilite products increased 21 per cent to Bt2.4 million last year. The second-best performer was its Artistry range of cosmetics. This year the company plans to emphasise Nutrilite, which currently accounts for about 52 per cent of overall sales. This year's target for Nutrilite is 15-per-cent growth in sales, and because of this, the proportion of sales from Artistry products may fall, Preecha said. Overall, Amway is aiming for sales of Bt9 billion this year, aided by an expanding direct-sales industry. Ratana Channara, marketing director, said the firm planned to spend up to Bt100 million on marketing. Its budget for promotions and internal incentives is Bt500 million. Nitida Asawanipont The Nation
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