Amway to hike its prices by 5%
Direct-sales giant Amway is suffering economic strains and will hike prices of all its products 5 per cent in October.
Business-relations director Kittawat Ritteerawee said yesterday the economic situation was affecting the company's production and operational costs and that the gloomy outlook was also taking a toll on its sales representatives.However, Amway still gets 20,000 applications a month from people in Thailand wishing to become independent sales reps for the company, and fewer than half of them quit. This compares with a 70-per-cent "quit rate" in the direct-sales industry. Kittawat said the price increases would not affect its sales representatives' performance if they had a deep understanding of Amway products and were able to explain to consumers. Meanwhile, Amway (Thailand) Ltd has announced the launch of the third step in its overall marketing plan and is planning a Bt50-million promotion. The new campaign, "An Opportunity to Have a Business of Your Own", will be marked by a TV commercial featuring a man who wants to free himself from the time pressures of a typical office and get to know Amway. The group plans activities and training for anyone interested. Kittawat said the new marketing step would call upon the trust Thais have commonly placed in Amway, which has been building its market foundation in the Kingdom for 20 years. It aims at strengthening the Amway corporate brand and that of the product brands under its umbrella, including Nutrilite food supplements and Artistry cosmetics. It also wants to attract more members. Introduction of this third marketing step in Thailand follows its implementation in other Amway markets round the world, especially Taiwan and the US. Currently, Amway has 300,000 active independent sales reps in the Kingdom. Nitida Asawanipont, The Nation
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