Last year it recorded Bt8.99 billion in revenue but that might be difficult target to achieve this year due to the economic slowdown and rising costs. Ratana Channara, said these factors wouldn't affect the company directly but would hit its independent sales representatives, particularly their transportation costs. Customers are also expected to delay making purchases.

Ratana predicted that the network-marketing industry as a whole would not grow more than 10 per cent this year.

The company will help independent sales representatives by allowing them to order Amway products through its website, which means the company will be responsible for product delivery and transportation costs. Currently, most of those who use this channel are its "Platinum Level" sales representatives.

Another strategy to maintain sales will be launching new products, especially those in the food supplement category brand Nutrilite. Ratana said that Amway's food supplements has a bright future unlike its beauty segment, because there is nothing unique in the latter category right now. Aware of nutrition and the desire to live longer, people are demanding more and more food supplements.

The company plans to increase the food-supplement portion of its sales to 34 per cent from the current 31 and decrease the proportion of its beauty products brand Artistry to 25 per cent from 28. Amway has 38 food supplement products. The food supplement market in Thailand is worth Bt6.5 billion, of which Nutrilite accounts for Bt2 billion, Ratana said, citing a survey by an outfit called Euro Monitor.

It also wants to redecorate its 38 shops nationwide.  Amway currently has 280,000 members in Thailand, including independent sales representatives and end-users.

Nitida Asawanipont

The Nation