Aviance diversifies to improve sales

Aviance, the direct-sales unit of Unilever Thai Trading Co Ltd, is expanding its distribution channels to boost its average customer sales, which have been on wane this year.
The multi-level marketing company will introduce three new business models in addition to a new business networking model. They are the beauty "pro-advice" networking model, authorised shop networking model, and e-business networking model, said Suchada Theeravachirakul, managing director of Aviance. "We had to develop our marketing strategy to boost sales to achieve the targeted average annual growth of 5 to 10 per cent after purchasing power dropped in this year," she said. Customer spending dropped 31 per cent from an average of Bt2,200 per bill last year to Bt1,500 per bill in the first half of this year, she said. The new business models are aimed at increasing its membership by 30 per cent a year. The company has averaged 40,000 new members per year and hopes to increase that to 60,000 new members a year. The company has 200,000 members, 60 per cent of them are consumer members and 40 per cent business partners. The company's new authorised shop networking model will include retail shops offering in-store beauty advice. The company aims to open 50 such outlets by 2009 - 30 in Bangkok and 20 around the country. The first five outlets are expected to open this year. The company has also changed the designation of its business unit from "Unilever Network unit" to "Luxury division of Unilever" to differentiate it from mass marketers, she said. The company also has to set aside Bt50 million to increase the frequency of its marketing events and training courses. This is also being done in a stab to increase customer spending on its products. Introduction of new products is also part of the strategy to boost sales this year. The company has launched new cosmetic products this year, including natural colour two-way powder foundation, lip colour and natural blush. Currently, 70 per cent of the company's revenues come from skincare and beauty products, 20 per cent from food supplements, and 10 per cent from household products.
Somluck Srimalee The Nation
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